Owning and running a car can be an expensive business so keeping the costs to a minimum makes sound financial sense. Insuring a car is a major expense, so to help you we have put together a guide that gives you some great tips for saving money on car insurance .
Think before you buy
Each make and model of car is placed in an insurance group by insurance companies. These groups are allocated by using various factors, such as cost of repair, value of car and performance. The higher the insurance group the more expensive your insurance premium will be. So choose carefully and check the insurance group before falling in love with your next car. Here is a handy car insurance group checker.
Think about your mileage
The less miles you drive the cheaper your car insurance is likely to be, so make an accurate estimate of your potential annual mileage. Make sure you don't underestimate your mileage as this could invalidate your insurance cover.
Increase your voluntary excess
All insurance companies impose a standard excess to their polices but you can add an additional voluntary excess to your policy to reduce the premiums. The higher the excess the lower the premium you need to be aware that this excess applies on each and every claim, so don't aim too high.
Shopping around for car insurance is now easier than ever, there are a number of comparison websites available to help you get a more competitive deal. Just complete the online form and you will get several quotes to choose from in seconds. However, you need to make sure you are comparing like for like cover by checking the details of the cover provided.
Protect your no-claims bonus
Although protecting your no-claims bonus will initially increase you premium by a few pounds it will keep you future premiums down if you subsequently make a claim.
Cut out the extras
Legal expenses and courtesy cars are nice to have but make sure you check out the reduced cost of these are removed. You may find that the reduction in premium is more attractive than those little extras.
Make your car more secure
If your car does not have an immobiliser or alarm then get one fitted, this could reduce your premium significantly. Check with your insurer what brand of security equipment they will accept as not all brands will attract a premium reduction.
Mind where you park
Where you leave the car overnight will affect your insurance premiums. Parking in a garage or on a drive is the best option but be truthful about where you regularly park as lying is sure to come back to bite you in the end.
Check your policy
Once you have decided on an insurer, make sure you check the policy again for any omissions, or extras, that could have increased your premium. If you find some errors contact the insurer again and get them to amend your policy and premium. Keep your certificate of insurance in a safe place in case you need to produce it in the future.
Be accurate with your occupation
Your current occupation has an affect on your premium, so rather than picking a generic job title be more specific as this could save you money. Don't be afraid to contact the insurance company, to explain your job in more detail, if you feel that your generic job title is penalising you unfairly. Money Saving Expert has a handy 'car insurance job picker' tool, the aim of which is to 'beat the insurers just by changing your job title'. Obviously if you change your occupation you will need to inform your insurer so they can make the necessary changes to your policy.
Pay annually, it's cheaper
Paying monthly can add a significant amount to your overall annul premium. Many insurers will charge interest in excess of 25% for the privilege of spreading the cost, which is not an insignificant amount.
Most insurance companies assume that are going to renew your policy at the end of each year. Your insurer will send you all your renewal documents in anticipation and if you are paying by direct debit they will even take your premium! Make sure that you put a note in your diary of the renewal date and before that date arrives use a comparison site to make sure you are still getting a good deal.
Fit a blackbox
A blackbox, that monitors your driving, can be fitted to your car by your insurance company. This can help reduce your premiums if your driving is considered acceptable. This is particularly useful for young drivers who can now prove to their insurer that they are driving sensibly and safely and obtain reduced premiums.
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