Owning, running, and maintaining a car can be expensive. Once you’ve bought your vehicle, there are a number of costs you have to factor in such as car insurance, road tax, fuel, repairs and servicing. You’ll have little control over most of these expenses, however, you can obtain very cheap car insurance by following the right advice and guidance.
Car insurance deal a legal requirement in the UK, you won’t be able to drive without it. Therefore, it makes sense to get the right policy for your needs. Fortunately, you don’t have to pay an exorbitant amount to insure your car, online comparison sites can help you find cheaper cover from an extensive number of industry leading providers. Simply fill in a short quote form which shouldn’t take longer than 10 to 15 minutes, and you’ll be able to compare deals, these can be filtered by price and features.
In this guide we’re going to look at five different ways you can save money on your car insurance deal renewal.
Use a price comparison site
You do not have to be disappointed when your car insurance renewal quote from your existing provider is excessive. Simply use an online price comparison and you can easily compare car insurance deal cover from a range of companies, helping you find a policy that is right for you, as well as saving you money.
To compare cover, simply answer a few basic questions about you and your vehicle and you’ll be able to obtain a free no obligation quote. You can compare varying levels of cover such as third party only, third party, fire and theft and comprehensive, in addition to including a number of optional extras such as breakdown cover and windscreen cover
Pay for your premium in one annual lump sum
If you can afford to pay for your total premium upfront, you could save money on your new policy. By paying in one lump sum, many insurers will offer you a discount. This is because providers will often add on interest for those paying by direct debit, which is added to your monthly payment plan. This isn’t always the case though, as there are a few firms that will charge you the same, regardless of your chosen payment method. The actual difference could be up to one monthly payment when comparing the two options. This choice won’t be suitable for everyone, but if you’re able to, it’s a good idea to take advantage.
Increase your voluntary excess
Most car insurance deal policies will come with two different types of excess, these are compulsory and voluntary excess. Your insurer will set the compulsory excess and this cannot be altered. The voluntary excess does give you some flexibility as you can adjust this to suit your needs. When a driver pursues a claim, he/she will be expected to pay the total combined excess (compulsory + voluntary).
The higher you increase your voluntary excess, the lower your insurance premium is likely to be. Please remember to think carefully before choosing your excess level, as you will be expected to pay this amount in the event of a claim. It’s a good idea to see what your total premium would be for each excess level, helping you understand how much you’re likely to save.
Consider a telematics insurance policy
Telematics insurance, sometimes referred to as ‘black box cover’ can help newer and/or younger drivers save money on their premium. Essentially, a small telematics device will be fitted inside your car and will monitor your driving behaviour. It will record data on your acceleration, deceleration, top speed, braking and cornering amongst other aspects. These results will be sent to your insurer and if you can prove you’re a responsible driver, you’ll be rewarded with cheaper cover.
Reduce your annual mileage
When purchasing a new car insurance policy, you will be asked about how many miles you travel each year. The more miles you cover, the higher your premium is likely to be. This is because you’ll be spending more time on the road, increasing your risk factor. If you’re able to reduce your annual mileage, you should also be able to reduce your costs. Think carefully about how many miles you actually do before overestimating the figure.
Remember, if you provide inaccurate information and exceed the annual mileage you’ve set, your insurer may refuse to pay out in the event of a claim. You can calculate your annual mileage by multiplying your weekly number of miles covered by 52. Remember to factor in the occasional long-distance trip though.
Hopefully, you’re able to make use of these five tips to reduce your car insurance premium. The more of these you can combine together, the better the price will be.
