themoneyshed
If you are the proud owner of a car you probably can’t imagine life without it. If you wanted to go for extreme moneysaving then you could probably give up your car, or at least one of the cars in your household. However, having a car is certainly convenient. You can go on a day trip at a moment’s notice, drive to visit relatives at Christmas time and are never really confined to your four walls. Today I am going to talk to you about ways to save money on your car insurance.
Shop around
I’m going to start with an obvious tip here! Shop around! Use a price comparison tool to help you find the best insurance deal for you. These fantastic tools will allow you to input your basic details and then help you search through 100s of car insurance companies. This can be a HUGE way to save money on your car insurance. When my husband first started driving for example the differences between some similar policies were as high as £1,000!
Check the wording of your policy
Nobody wants an unexpected surprise if they need to make a claim. Be sure that you are reading the wording of your policy carefully. Check all of the details that you have input on any price comparison sites and ensure that everything you require is actually going to be included. The time that you don’t want to find out you aren’t fully insured is usually the time it is already too late and you need to make a claim!
Call your current insurer
If you find a price that can beat your current insurance company it is always worth giving them a ring. Some companies, Hastings for example, will often offer loyal customers a better price than the ones on price comparison websites. We saved around £280 by haggling on our last renewal – this was even £230 cheaper than the telemetric box insurers we found on a price comparison website.
Check insurers not listed on price comparison sites
There are a few car insurance providers that work to keep their costs lower by not being on price comparison websites. Personally I have never found better deals than on price comparison websites but it is always worth visiting such companies. Examples include Aviva and Direct Line. Both of whom pride themselves on offering you the best deal if you contact them direct.
Consider paying a higher excess
If you are in a position to do so then consider adding a voluntary excess to your policy. Even a voluntary excess as low as £50 can help you save money on your car insurance. Obviously nobody knows what is around the corner so ensure that you are going to be able to afford any excess if you are unfortunate enough to have an accident.
Provide accurate mileage details
You might think that you are travelling more miles than you actually are. You can look at your previous MOTs to get an accurate idea of the mileage that you genuinely drive each year. Never underestimate to get a lower premium but ensure that it is as accurate as possible.
Choose your job description carefully
This is one of the lesser known ways that you can save money on your car insurance. Your job title can make a big difference to your car insurance prices. For example my husband works in security and there are a number of areas that his job, and his employers business, could come under. By choosing carefully (but being accurate still) we were able to save £60 on our years policy.
Review the additional add-ons when purchasing
Think about which of the optional add-ons you really need. Many insurance companies have different tiers of insurance, based on the add-ons that you require. Some add-ons that you may not need include European breakdown assistance and a courtesy car. If you have another car in your household you would probably be able to manage a few days while your car was in the garage. Also, check that you don’t already have a breakdown assistance service that covers you.
Compare the difference between fully comprehensive and third party, fire & theft
When you are trying to save money you might think that third party, fire & theft is the cheapest option. However, often this is not the case. As I found when my husband started driving. Being fully comprehensive will ensure that you are covered from any eventuality when you are driving on the road. This could save you a considerable amount of money, especially if someone hits you and drives off!
Remove named drivers
Do you really need to have additional people added on to your policy? If you have someone who just uses your car a couple of times a year you’d probably save more by just ringing when they need the car. There are even companies that specialise in offering a one day car hire service.
Protect your no claims bonus
This is a big one in my opinion. A few years ago some idiot drove us off the road. Our car was a write off and it was a complete nightmare. While we were waiting for the fault to be passed on to the driver who was charged with dangerous driving we had to get a new car. Then our insurance policy lapsed. Our current insurer tried to put our premiums up, by almost £700, but we were able to shop around. Because we had a protected no claims bonus this helped us keep our new policy low while the previous incident was being dealt with.
Declare any security features
Does your car have an alarm or immobilser? A lot of cars are fitted with these as standard now so ensure that you inform your car insurer of any security features. These can help bring your price down as your car is statistically less likely to be stolen.
Pay for the year upfront
It can be tempting to spread your car insurance payments over the year, to save money. However, if you can pay upfront you can save a nice amount of money. As much as 20% over the year! This is a huge saving in itself. If you can’t afford to pay for the insurance in one lump sum ask your provider if you can pay a larger deposit to help you save a little interest.
Look out for cashback offers
Once you have found the perfect priced car insurance check if they are listed on cash back websites. TopCashBack and Quidco both regularly have offers on different insurance policies. You might even be able to find a code too. Always remember that cashback is not guaranteed. Do not take a more expensive policy on the basis that cashback will be awarded.
Try to avoid changing providers midway through your policy
Many insurers charge you a fee if you need to change your policy midway through. These ‘admin fees’ can range from £20-£50 with many of the large car insurance providers. If you know that you are going to be getting a new car then consider if you can wait until your policy is due to end.
Consider a telemetric box
Are you a great driver? Then a telemetric box might be the best way to save money on your car insurance. Over time, as you prove that you are a safe driver, you can receive discounts on your car insurance.
Personally this is NOT something that I would want to use. Only because it feels very much like the car insurance companies are spying on you. However, I have heard of these being used in the event of a car accident, to prove that excessive speed wasn’t being used. This is a bit of a controversial way to save money on your car insurance so do your own research first!
Use your garage
If you have a garage, that is going unused, then start parking your car in it. The extra minute or two you spend putting your car away could save money on your car insurance – and lots of it. Obviously a car is less likely to be stolen if it is locked in a garage. This tip has the potential to save you time and hassle!
Don’t be loyal!
Definitely do not be loyal. Most car insurance companies will try and put up your premium now. Car insurance prices HAVE risen, due to an increase in whiplash claims and crash for cash payouts. However, if you ask your current insurer they might dangle a nice carrot to stay. Typically, as with a lot of things in life, if you don’t ask you don’t get!
I hope that you have found these ways to save money on your car insurance useful. I love being able to get my husband’s car insurance renewal reduced every year. Our car insurance policy has reduced by more than 70% since my husband started driving four years ago. We’re still paying several hundred a month but I’m confident it will get lower and lower every year as it has done so far.
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