How to save money on your car insurance
Firstly, Use my car insurance comparison service here – Compare Car insurance
Then follow the below advice.
With the cost of car insurance steadily increasing, it pays to take some simple steps to cut the price of your cover. Your premium is calculated on how much of a risk you’re perceived to be by insurers. If you’ve had a couple of accidents, or you’re a young driver who hasn’t had insurance before, you’ll pay more.
The average driver will pay around £549 annually in motor insurance. However, there are some relatively easy steps you can take to reduce the cost of your car insurance as much as possible.
1. Check out third party and fully comprehensive
Some drivers make the mistake of assuming third party car insurance is the cheapest, because it covers only the vehicle that you bump into and not your own car. In fact, with some insurance companies, you’ll actually find it’s cheaper to take out fully comprehensive cover, covering your own vehicle’s repairs too, should you cause an accident.
Although this doesn’t seem logical, as you’re receiving more cover for a lower price, check out some of the comparison sites and complete quotes for both fully comprehensive and third party car insurance. You may be surprised at the results.
The best way of doing this is to compare prices on several comparison websites, as the prices will differ not only between insurers, but between the sites too. Give yourself half an hour to investigate a few different options.
2. Have a second responsible driver on your policy
Again defying logic, you may think it’s dearer to insure two drivers, rather than one. However, if your car insurance covers you and another responsible, named driver, it could bring your premium down. This is because car insurance is based on risk. If a high-risk driver adds another driver who’s a lower risk, this brings the average risk down and therefore could bring down the price of the policy too.
The better your driving history, the lower the risk, so having another named driver on your policy who has decades of trouble-free driving on their record could reduce the premium considerably. Again, it’s about trial and error and checking out prices on a number of comparison sites.
3. Describe your job description carefully
Another tip is to take care in how you describe your job description. This is legal and legitimate. It doesn’t mean lying about your job. Instead, it means checking the different ways of describing it. For example, premiums for an illustrator are often cheaper than premiums for an artist. If you’re a secretary, you may find the price is cheaper if you describe yourself as a personal assistant.
Take the time to make small changes to your job description on the comparison websites and see if it makes any difference to your car insurance costs.
4. Pay annually if you can afford it
If you go on to a monthly payment plan for your car insurance, you’ll find yourself paying considerably more in the course of a year. This is because it’s the equivalent of taking out a loan when you sign up for monthly direct debits and you pay interest accordingly.
Whereas it can be convenient to pay a small deposit and monthly direct debits for 12 months if you’re short of money, it will end up costing you more. For example, say your insurance is £1,000 and you pay with an APR of 25%, your actual insurance will end up costing you £1,140 including the interest. If you can’t afford to pay all in one go, try to pay using a credit card with a low or zero APR and then clear your repayments to the card within the year instead.
There are all sorts of relatively small things you can do to help keep your car insurance down. The best advice is to shop around as much as possible. My comparison website make it easy. By spending time looking for the best deals, you can save a lot of money in the long run.