Car insurance is a necessary expense, but there are many ways to reduce the cost without sacrificing coverage. Here are 20 tips to help you lower your car insurance premiums:
- Buy from the Internet
- Shop Around
- Buy Extra Products
- Pay Your Premium in One Go
- Increase Your Voluntary Excess
- Lower Your Annual Mileage
- Install an Alarm, Immobiliser, or Tracker
- Take the Advanced Driving Test
- Don’t Inflate the Value of Your Car
- Maintain a Good Credit Rating
- Consider Third-Party Only Coverage
- Keep a Clean License
- Remove Unnecessary Drivers
- Add an Older Driver
- Build Up Your No-Claims Discount
- Protect Your No-Claims Discount
- Buy a Lower Insurance Group Car
- Join a Car Club
- Add Your Spouse as a Named Driver
- Take the Pass Plus Course
1. Buy from the Internet
Many insurance companies offer discounts for online applications since this automated process costs them less to handle. These discounts can range from 5% to 10%. By purchasing your policy online, you can often secure a better rate.
2. Shop Around
Insurance premiums can vary widely between companies because each uses its own formula to calculate rates. By comparing quotes from different providers, you can potentially save a significant amount on your premium. Never settle for the first quote—shop around to find the best deal.
3. Buy Extra Products
If you need additional insurance products, such as home or contents insurance, consider purchasing them from the same provider. Many companies offer discounts for bundling multiple policies, which can lead to savings on all your insurance needs.
4. Pay Your Premium in One Go
Paying your insurance premium in full can help you avoid costly interest charges that come with paying in installments. Some insurers charge up to 15% APR on monthly payments, so paying upfront could save you money. If paying in full isn’t possible, consider taking out a small loan with a lower interest rate.
5. Increase Your Voluntary Excess
The excess is the amount you agree to pay out of pocket in the event of a claim. By increasing your voluntary excess, you can reduce your premium since you’re taking on more risk yourself.
6. Lower Your Annual Mileage
Insurance companies typically base their quotes on an annual mileage of around 12,000 miles. If you drive less than this, you may qualify for a discount. Be honest when reporting your mileage, as insurers may check your vehicle’s service history in case of an accident.
7. Install an Alarm, Immobiliser, or Tracker
Theft is a significant factor in insurance premium calculations. Installing security devices like an alarm, immobiliser, or tracker can reduce your premium by lowering the risk of theft or aiding in vehicle recovery.
8. Take the Advanced Driving Test
Passing an advanced driving test demonstrates to insurers that you have superior driving skills and are less likely to be involved in an accident. This can lead to lower premiums.
9. Don’t Inflate the Value of Your Car
Overestimating your car’s value on your insurance application won’t benefit you and will only increase your premium. In the event of a total loss, the insurer will pay the market value of your car, not the inflated figure you provided.
10. Maintain a Good Credit Rating
Your credit score can affect your car insurance premium. Insurers often view a good credit rating as a sign of reliability, which can result in lower premiums. Keep an eye on your credit score and work to improve it if necessary.
11. Consider Third-Party Only Coverage
Third-party only insurance is the minimum legal requirement and is typically the cheapest option. If your car is of low value, this might be a cost-effective choice. However, keep in mind that it won’t cover damage to your own vehicle in the event of an accident.
12. Keep a Clean License
Driving convictions can significantly increase your insurance premium. By maintaining a clean driving record, you prove to insurers that you are a safe and responsible driver, which can help keep your premiums low.
13. Remove Unnecessary Drivers
If there are drivers on your policy who no longer use your vehicle, removing them can reduce your premium. This is especially true if the driver is young or has a poor driving record.
14. Add an Older Driver
For young drivers, adding an older, more experienced driver to the policy can sometimes lower premiums. Insurers may see this as reducing the risk, especially if the older driver has a clean driving record.
15. Build Up Your No-Claims Discount
One of the biggest factors affecting your premium is your no-claims discount. The more years you can go without making a claim, the greater the discount you’ll receive—up to 75% for around five years of no claims.
16. Protect Your No-Claims Discount
While protecting your no-claims discount may slightly increase your premium, it can be worth it in the long run. A small claim could otherwise result in a significant premium increase.
17. Buy a Lower Insurance Group Car
Cars are grouped into insurance categories from 1 to 50, with lower numbers typically resulting in lower premiums. If you’re looking to save on insurance, consider choosing a car in a lower insurance group, especially if you’re a young or inexperienced driver.
18. Join a Car Club
If you own a classic or specialist vehicle, joining a related car club can offer benefits, including access to insurance schemes with favorable rates. These clubs often have partnerships with insurers that offer discounts to members.
19. Add Your Spouse as a Named Driver
Some insurers offer discounts when you add your spouse as a named driver, as they may view married drivers as more stable and less risky. This can lead to a lower premium.
20. Take the Pass Plus Course
If you’re a new driver, consider taking the Pass Plus course. Some insurers offer discounts of up to 25% for drivers who complete this course, which can be especially beneficial if you have no no-claims discount.
By following these tips, you can find ways to reduce your car insurance costs without compromising on the coverage you need. Remember to review your insurance annually and adjust your policy as your circumstances change to ensure you’re always getting the best deal.
