There can be few drivers who would not jump at the chance to reduce their car insurance costs each year, and if you are one of these drivers, below are 10 tips that you might find useful for cutting your annual bill.
1. Choose a higher Excess
Increasing the excess on your policy that you are willing to pay, will almost always mean that the policy will become cheaper. The best option to compare is to give the car insurance company a call and to ask them to give you the insurance price for different excess rates. You might find, for example, that increasing your excess by £50 might save you £100 – £200. Give your insurer a call and compare the different rates!
2. Buy Online
Buying things online is often cheaper because online sales greatly reduce the capital outlay for businesses. You will almost always find cheaper rates online compared to if you try to buy via any other resource.
The majority of car insurers (and this applies to utility bills also if you want to save money) allow a certain percentage for negotiating the rate of your insurance. You may have seen my previous post on money saving tips and how I saved £59 on my policy by making a 10 minute call to my car insurer. It is now standard practice and expected by car insurers that customers will phone up and ask for a reduced rate. What I tend to do also is to find a cheaper quote online for like-for-like services and to use this other amount for reference in case I am asked if I have found a better rate. Almost always there is a better rate online via price comparison site.
4. The cheapest is not always the best in the end
The best rate in the end is not always the cheapest if that makes sense. If you do need to claim on your car insurance, for example, you want of course to be dealing with a company you can get hold of relatively easily, without expensive call charges, and with a company who are likely to pay out where when appropriate. The trick in my opinion is to make sure you do pay attention to the inclusions for the policy and also do a quick search online for review on the insurer in question. Spend 3 minutes for these checks and that should be long enough.
5. Job Title
Although one of the smaller pieces of detail, one might argue, when applying for car insurance, I have heard of cases of people sometimes getting better rates according to a change in their job title. Sometimes subtle changes to the wording of your job title can change your policy cost and some people have actually saved a £100 plus from this change. Do remember though that giving false information on your policy can invalidate it if you try and claim, so do be honest about what you do. Subtle wording of the job title though can change the policy cost i.e. civil servant from administrator.
6. Young Drivers and Black box
If you are a young driver, DO consider having a black box installed. This device measures exactly how you drive, where and when and at what times etc. Insurers will give you a discount if you install one of these (and drive sensible). For young drivers this can be an invaluable way to cut those really high premiums that you start paying whilst building the no-claims discount.
7. Use a Cashback service
I have got back £202 in the last one year from Quidco for various purchases including car insurance. Admittedly, the cashback has been for buying a number of things via Quidco but £8 of that was from car insurance simply for spending an extra 10 seconds to go to Quidco and then to click through to car insurance site I bought my policy with. I got the same deal/price but made a point to get a 3% cashback! So easy. Visit this link I have created to go straight to the cashback offers for car insurance.
8. Adding a Parent to the Policy
Another tip for younger drivers is to add a parent to the policy. This should reduce the cost of the policy and happens because insurers consider that a parent will generally use the vehicle more responsibly and is sharing the vehicle. Technically speaking, the parent though should intend to use the vehicle sometimes if being added as a driver. This is a great way for first time and young drivers to get the cost of the policy down. whilst building no claims years.
9. Use a Price Comparison site
Most of you will be familiar these days, with price comparison sites. Two sites I always check and that are quite popular are:
10. Make you Car Secure
Some insurance providers will offer a small discount (quite often 3-5% reduction) if you have your car secured such as with an alarm, tracking device and immobilser.