Owning a car provides a lot of freedom, although running it does come with its costs. Once you’ve bought a car, there are a number of expenses such as petrol, insurance, maintenance and road tax. One of the highest expenses can be a car insurance policy.
In the UK, it is a legal requirement to have the appropriate cover in place if you’re driving on a public road. If you’re caught without insurance, you could face penalty points, a large fine or even be disqualified from driving. No motorist should ever take this risk.
Depending on an individual’s personal circumstances, car insurance can sometimes be relatively expensive. This adds up very quickly when you consider all the other running costs mentioned above. Fortunately, there are a number of different tips you can utilise to lower your annual premium. One of the best ways is to simply compare car insurance from a range of leading providers by using an online comparison site such as Utility Saving Expert.
Let’s look at some great tips in further detail to help you save money on your next policy.
Pay for your insurance premium in one lump sum
This option won’t be suitable for everyone. However, if your financial position allows you to, you should consider paying for cover annually. This means you will pay for it all up front in one lump sum rather than monthly instalments. The reason for doing so is because your premium will likely be cheaper. Many insurance providers will add on interest fees for those that pay via direct debit, meaning over a 12-month period, you will actually pay more. To see how much of a difference it makes, compare the two total prices. Normally, paying in instalments can be as much as one additional monthly payment.
Compare car insurance online
Many drivers are surprised to see their renewal quote soar in price when their current policy is due to expire. This is the perfect opportunity to search for a better deal. You can do this in a number of ways. Previously, you would contact a few different insurance companies one after another and go through a 30-minute quote over the phone and select from the best offer you received. This is no longer the best way as it can be time consuming, and you don’t want to be on hold for an extended period of time before even speaking to a sales representative.
Fortunately, the internet has provided a perfect solution to this. You can now use an online comparison site to easily compare car insurance in a matter of minutes. Simply enter your details in an online quote form that usually takes around 10 to 15 minutes and you’ll be presented with a range of options to choose from. Furthermore, you can filter options by price and even make adjustments to see how the cost may differ. This is arguably the best method to save money on your next policy.
It is important to note that the cheapest policy isn’t necessarily the best policy. So do read reviews and find out more about a company’s reputation before selecting them. Not all cover is the same, and knowing the difference between the three main types is useful. Third Party Only is the most basic level of cover. Third Party, Fire and Theft and Comprehensive insurance policies provide additional cover but come at an added cost. It’s important to choose the right policy for your needs.
Increase the voluntary excess
Almost all car insurance policies will include two different types of excess — compulsory and voluntary excess. The insurance provider will set the compulsory excess and this can’t be altered. However, the driver will be able to choose the voluntary excess from a list of provided options.
In the event that you have to pursue a claim, you will pay the total combination of both the compulsory and voluntary excess. If you were to increase the voluntary excess, your overall premium may go down. The more you increase this, the bigger discount you are likely to see. However, it’s worth trying to find the right balance since if you do set this too high, you will be expected to pay it in the event of a claim.
This is why it’s highly recommended to see how much your total premium will differ by selecting each level of excess. You should choose an amount you feel most comfortable with.
Consider a telematics insurance policy
For younger drivers, a telematics insurance policy (also known as black box cover) is a great way to get cheaper car insurance. A small device will be fitted inside your vehicle and monitors your driving behaviour. If you can prove that you’re a relatively safe driver, your insurer will reward you with a reduced premium. The black box collects data on your driving speed, cornering and braking amongst other aspects. The results will be used to determine your overall risk factor on the road.
Hopefully, you’re able to take advantage of some or all of the above tips to get cheaper car insurance. Before buying your next policy, remember to carefully read the terms and conditions and make sure you’re aware of any limitations and exclusions that may be applicable.