Insuring your car is a big expense – and the RAC estimates that at least one in three motorists are paying too much for theirs – but savings can be made if you’re prepared to do a bit of digital legwork online.
With many car insurance companies vying for your business, there’s no need to just accept the renewal figure quoted by your present insurers.
Here are some top tips for saving money:
Make a diary note in advance of when your insurance expires. Many people don’t and, because many insurance companies send a renewal quote just before your insurance expires, feel like they don’t then have enough time to compare prices so opt for the ‘convenience’ of letting their current policy continue.
If you’re a learner then get into the money saving mindset from the very start, right from utilising free resources to learning the rules of the road, through to searching out reliable bargain first cars.
It’s very easy now to get a whole raft of other quotes for your insurance without leaving your chair. There are various comparison websites that will return a selection of quotes once you’ve entered your details on their site.
A good tip here is to use more than one of the major comparison websites as the prices can vary from site to site and not all insurers use all the comparison sites. This resource explains the most effective way of doing this.
Not all insurers use the comparison sites so it may well pay to get quotes from these individually. Direct Line and Aviva are two major insurers not on comparison sites.
Once you’ve found a quote on a comparison site, you could go to a cashback website and buy the policy though them. If available, this is a way of getting some of the cost refunded thus saving more. You’ll need to register first.
Use a broker
A variation on the comparison site option, this is where you use a middle man – the broker – to find the best deal for you. The British Insurance Brokers’ Association is a type of comparison site, but they find suitable brokers for you as opposed to insurance companies direct. This might well be worth your while if you have special requirements and need an expert to help you out.
Add another driver
Adding a low-risk other driver to your policy usually lowers the premium. Be careful though – don’t imply they will be the main user of the car and, obviously, adding a young driver will have the opposite effect by pushing your premium up.
Fit a ‘black box’
Some insurers base your insurance on having a ‘box’ fitted to your car which monitors and tracks your use. This ‘insure as you drive’ style insurance helps those who don’t use their cars as often.
Policies are a good idea for younger drivers and help reduce premiums. For example, if they avoid using the car too often at night savings can be made compared to the sort of costly standard policies they could otherwise purchase.
If you can, keep your car in the garage as this helps to reduce premiums and think before adding modifications such as engine enhancements or bigger and more expensive wheels – each of these has a long-term insurance implication as well as an up-front cost.
Don’t let inertia stop you from saving money.