Drive down your car insurance costs with these handy tips. Car insurance – we all understand the need for it but slightly resent the cost. And let’s face it, for some drivers – young drivers in particular – those costs can be astronomical.
The good news is that there are ways of limiting the cost of your car insurance. However, it is crucial to remember that you must always be completely open with your insurer and declare any relevant information, because failing to do so could invalidate your cover. That said, here are some suggestions as to how you might reduce that pesky bill:
Many UK drivers are paying more than they need to for car insurance, because they pay each month rather than in a lump sum. Most insurers will add extra charges for this facility, meaning that the overall amount paid by the customer is much higher. Whilst it may be difficult to pay upfront (the average UK annual car insurance bill is over £450), doing so immediately saves you money. Multiply this saving by the number of years you will be insuring a car, and the savings are clear.
Use the same insurer for multiple policies
Some insurers offer discounts on car insurance to customers who already have a different type of policy with them. So if you have your household contents (or other) insurance with one provider, it makes sense to ask whether they will give you a discount for taking out their car insurance, too. However, not all insurers do this, and even when they do, it may still be possible to get cheaper cover elsewhere, so get a quote, but don’t forget to compare it with others.
Don’t assume reduced cover is cheaper
There are various levels of car insurance cover. The minimum cover needed to drive legally on UK roads is third party. Third party insurance covers the driver for any damage that they cause to another vehicle and offers protection for passengers. Third party does not pay out if your car is stolen or damaged. Third party, fire and theft add (unsurprisingly) fire and theft cover. It used to be that these types of insurance were cheaper than fully comprehensive policies. However, this is no longer so and in some cases, third party may be more expensive than comprehensive cover. Why? Often, because those who seek minimal cover are believed to be a riskier group, so their policies are loaded to reflect this. For consumers, the lesson is clear; get quotes for all types of cover from each insurer – the results may surprise you.
Of course, these are not the only ways to save. Trustworthy sites like Car Finance 247 can offer some great tips on saving money on your motor. Getting a security device fitted, driving a small car and minimising modifications can all bring down the price of insurance. Adding another (well-behaved) driver to your policy may also be helpful. However, never name somebody as the main driver on a policy if this is not, in fact, the case (e.g. parents of young drivers must not take out insurance in their own name and add the young driver to that policy if the young person is driving the car frequently). This is fraud, commonly known in the industry as ‘fronting’.