There are a number of ways in which you can lower your car insurance premiums whilst maintaining adequate cover. The first, and perhaps most obvious, is to shop around for the best deal rather than accept the renewal quote offered to you by your current insurer. When shopping around for cheaper cover always make sure that you compare cover that is like-for-like. Initially, some insurers may look like they are offering a better deal, but when you check the small print you may find that they are not offering the same amount of cover.
Probably the easiest way of shopping around for car insurance is to use a comparison site. However, bear in mind that not all insurers appear on these sites. If you have been happy with the service provided by your current insurer you could also contact them and see if they are willing to match any quote given to you by another provider.
New technology has resulted in the introduction of a telematics policy (also known as a black box policy). These devices keep an eye on your driving and you receive a discount if you are careful behind the wheel. These clever little boxes monitor how aggressively you brake and accelerate, how fast you drive, and whether you regularly spend time on the road at more dangerous times, for example, during the early morning rush hour. These gadgets are particularly useful for younger drivers as they enable them to provide evidence that they are a good driver irrespective of their age, and they will receive a cut in premiums as a result.
Your no claims bonus is vital when it comes to keeping your premiums as low as possible so opt to protect it. Protecting your no claims bonus will add a small amount to your premium, but bear in mind that some no claims bonuses can amount to a ninety percent reduction. Accidents that are down to the negligence of another driver will not normally affect your no claims bonus, although those caused by the insured party could; be sure to check the small print as this varies between insurance providers.
Paying by direct debit can be a useful way to spread the cost of your car insurance, but many monthly instalment plans also incur interest. If you prefer to spread the cost of your insurance an alternative would be to take out a credit card that offers zero interest for twelve months, and make sure that you clear the balance within a year.
Increasing your voluntary excess will automatically reduce the cost of your premiums. If you are involved in an accident and it is not your fault then the excess can be recovered. However, raising your excess too high can be a false economy, especially if your car was relatively inexpensive. You could find that after taking the excess into consideration it is not worth making a claim. You should also ensure that the excess is set to an amount that you can comfortably afford.
By taking steps to secure your vehicle you could receive a discount on your premiums of up to five percent. An immobiliser, tracking device, and approved alarm system will result in a cut in your premiums so if you have them make sure that you inform your insurance provider; most new cars come with these features as standard.
The less miles you do, the lower your premiums. As an example, a cut of around 10,000 miles per year could save a thirty-five-year-old driver around £50 per year in premium payments.
If you want to keep your premiums to a minimum then avoid adding inexperienced drivers to your policy. A practice called ‘fronting’ was sometimes used by parents to cut the cost of insuring younger drivers. This involved taking out car insurance in the parent’s name in order to obtain cheaper insurance for their children, and is currently subject to a crackdown by insurers. Adding a younger, and thus less experienced driver to your policy will always result in an increase in premiums, but if it is necessary then be sure to inform your insurer that you are actually the main driver.
Another way of keeping your insurance costs down is to keep your vehicle in a locked garage when not in use as your car is less likely to be stolen or vandalized when stored in a secure building rather than on the road.
Finally, if you decide to change your car for a different model then do your research first as sports cars, and those with bigger engines, will cost you more in insurance payments. Also, bear in mind that changes to your policy mid-term will often result in an administration fee of up to around £50; these changes include a change in vehicle, and also a change in address.
By taking the time to shop around and find the most competitive quote, and to take into consideration the factors mentioned throughout this article you could see a dramatic decrease in the cost of your car insurance.