Tempting as it may be to simply settle for a renewal premium with your
existing insurer, you must do your research, as there's no reward for
loyalty when it comes to car insurance. Shopping around online to
compare prices from a range of
insurance providers is a good way to try and find a lower quote.
Moving to a new provider is straightforward, stress-free and can save
you a considerable sum.
2. Higher excess
A simple way to knock pounds off your premium is by opting for a higher
voluntary excess. However, do be aware that you will have to cough up
more of your cash in the event of a claim.
3. Keep it safe
Insurance providers look at the risk every driver presents, so you could
get a better deal if you can reduce that risk. Improve your car security
by installing an alarm and immobiliser, and keep premiums down by
parking your car in safe area - preferably in a garage, a driveway or in
a secure parking zone.
4. Reduce mileage
There are savings to be made by opting to only drive at certain times of
the day (e.g. not during peak traffic), and by reducing the mileage you
do each year. But while this is positive for both the environment and
your wallet, don't underestimate your mileage in the hope of tricking
your insurance provider, as this could invalidate your claim.
5. Think small
As bigger and faster vehicles will cost you more to insure, why not go
for a small car? Also, itís sometimes a good idea to avoid models with
sporty letters after it Ė such as i, sxi or gti Ė as they usually
signify a more powerful (i.e. a more expensive to insure) version of a
standard model. And don't be tempted to modify your car with, for
example, side skirts or tinted windows, as modifications will often bump
up your premium.
6. Change the way you pay
If you pay for your motor cover in monthly instalments, then you could
be paying through the nose for spreading the payments across the year.
Pay your premium in one upfront lump sum instead, and you could see your
costs slashed. Make sure you do your sums though... If youíre
considering paying on your plastic, itís worth considering the APR of
instalments versus the APR of your card.
7. Pass Plus
If you're a new driver than you're going to be worst hit by rising
prices, so invest some time and money in taking the Pass Plus course
designed to give young drivers additional practical driving experience.
This demonstrates to insurers that you are a safer driver and, once
completed, could reduce your premiums by around a third.
8. Be Honest
Donít try to get away with not telling the whole truth in a bid to
reduce costs. If you mislead your insurance provider, you may be
committing insurance fraud. This could invalidate your cover, and if you
caused an accident, you would be responsible for all the costs yourself.
Insurance fraud also means you will have a lot of difficulty finding car
insurance in the future.