Want cheaper car insurance? Doesn’t everyone? Our expert team has trawled through different insurers and comparison sites to find you the best seven ways you can reduce those costly car insurance premiums.
1. Pay annually
When you’ve found the right policy your new insurer will offer you the option to pay one lump sum or in monthly instalments. Choosing to pay it in one annual payment could save you a considerable amount of money. By paying monthly you are basically agreeing to a loan from the insurer or insurers finance partner, and the rates to which you may be charged can be extremely high, some as much as 36% APR. So if possible chose to pay in one lump sum or if that’s not possible see if you can find an interest free deal on a credit card and pay it with that, giving you the option to pay monthly.
2. Multi-car insurance
Many insurers now offer multi-car insurance which can have substantial savings if you have more than one car in your household. It enables you to link multiple policies and get a greater discount. When our team researched into multi-car policies they did get varied results from different companies though, so check individual policies too as it’s not always the cheapest option.
3. Add a low risk named driver to your policy
A great one for young drivers under 25 is to add a lower risk driver to your policy as a named driver. It certainly helped with cheaper car insurance when our team tried it, so definitely worth doing.
4. Increase your excess
This one’s obvious really, the higher you can put your excess, the lower your insurance will be. Yet please make sure you can afford to pay the excess amount if and when you need to. In fact, when we looked into this, as the excess amount got nearer to the total claims limit the results were surprisingly more expensive, so try and find that middle ground.
5. Add a black box
Generally, for younger drivers, black boxes can be fitted to your car to track your driving via GPS. If you pass your insurers criteria which can range from the time of day you drive, mileage, speed, cornering and braking, then your premiums can be discounted. On the other hand, if you break your insurer’s criteria your premiums will increase. So, if you’re a responsible driver then a black box can potentially save you a lot of money, but if you have a rackless side, it may be worth giving one a miss.
6. Consider a cheaper car to insure
Before you purchase your car it’s worth checking out how much the insurance will cost you. The make and model of your car is a factor in determining how much your insurance policy will be. If you haven’t purchased your car yet, you can check online what rating your car is, either on the Association of British Insurer’s rating scale via the Thatcham Research website. Or by entering the details of the car on comparison websites. Once you enter a few options of car specification you’ll soon realise what huge savings there are to have if you drive certain makes and models over others.
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All the information shared in this article is to help you make your own decision. It is NOT intended as financial advice so use the information at your own risk as we can’t accept liability if things don’t go as you intend.