The majority of us nowadays drive as it is the most convenient method of getting around and doing either our jobs, shopping or leisure activities. It can be really annoying when you see how expensive it can be when you see your car insurance. Here are some tips for saving money on car insurance.
Shop around and compare prices
Like when you go shopping for an expensive item you do not just buy it at the very first place you see. You need to look around and compare different insurance companies as well as the different rates that they provide. You might be able to find something that offers the same, more or comparable levels of cover for the same or less price. You can also try contacting the companies directly as they could give you a better rate to bring in a new customer.
If you do prefer to use an insurer you are currently with then it is worth a try of going to them directly and attempting to haggle to get a cheaper price. Many companies will prefer if you stay with them and will be accepting of lowering the price or giving you another reason to stay like with a different policy that provides more whilst staying at the current price.
Lower your mileage
Travelling less miles is not only good for the environment but it can also lower your car insurance, especially if you are looking for student car insurance.
The more miles that you usually cover then the more at risk you are of becoming involved in an accident and making a claim. As such the price will usually increase the more miles are added. If you are in a position to lower the amount of miles then go for it but also be truthful to the insurer about any changes that might occur to alter this over your amount. As the insurer will discover if the mileage estimate is accurate and will take it into consideration if there is a claim.
To calculate your average mileage simply calculate the average mileage you do in a week (work, shopping, other trips) and multiply by 52. To be on the safe side allow for any longer journeys that you might take, so holidays, visiting relatives and day trips away.
Pay-per-mile car insurance
If you are driving less than 7,000 miles per year then you might find that using a pay-per-mile car insurance provider saves you money.
If you don't drive much then traditional car insurance doesn't make sense. Instead you can pay a fixed annual cost to cover your car when it is parked, and then just pay for the miles that you actually drive.
By Miles offer pay-per-mile car insurance to help you to save money.
If you enter your car’s registration number on their website then they’ll run an instant check with the DVLA and show how many miles your car did last year.
As well as saving money by paying for your car insurance per mile, there are also some other great benefits to using By Miles. For example, it removes the negatives for using a black box – you won't get any penalties when you brake or accelerate too hard and no engineer is needed to install it.
Pay-per-mile car insurance from By Miles comes with the following benefits:
- Fully comprehensive cover
No Claims Discount protection – even if you have an accident
Courtesy car while your car’s being fixed
Overseas cover – up to 90 days in any EU country
And there are no penalties if you drive more or less than your estimate. It’s pay-per-mile, so if you drive a bit more you pay a bit more but if you end up talking a few more walks and driving a bit less then you’ll pay a bit less.
Adding another driver
With some policies adding an older driver can lower the price of the insurance. This might not work in some instances like a parent adding a newly-qualified driving son or daughter but if you have been driving a couple of years and add your parent to your policy then it can reduce the price.
It is simply down to the fact in the eyes of the insurer a more experienced driver will be using the vehicle some of the time which reduces the amount of risk presented by the main driver, especially if you still fall into a young age bracket, usually 20s.
Don't have a parent open an insurance policy with them as the main driver when it is in fact the so or daughter being the main driver. This is known as Fronting, it is not only illegal but is considered a serious offence as it is a form of fraud.
Annually over Monthly
If finances allow it then why not pay your insurance annually. Annual payments usually work out cheaper at the majority of companies as it would only be a single transaction a year rather than multiple. Many insurers add an interest charge to direct debit payments, this is down to handling and being charged themselves, as such the price they charge you reflects that.
The difference can be as large as a single monthly payment, which you could put towards something else instead.
The Black Box
I think we have all heard of aircraft all being fitted with a black box but there is also one for cars and there is an insurance policy to cover it as well.
If you go with this option then a small black box will be fitted in the car to monitor the performance of the motorist. Speed, braking, cornering everything will be recorded and reviewed. Careful and responsible driving will be then rewarded with discounts on the car insurance.
Increase your voluntary excess
There are usually two types of excess attached to a car insurance policy, compulsory and voluntary excess. These combined is the sum the driver has to pay in the event of having to make a claim.
Compulsory excess is set by the insurer and can't be altered however voluntary excess can be set by the driver.
You can set your voluntary excess to zero so that you only have to pay the compulsory excess in an event of a claim. However this would mean the insurer would have to pay the full amount apart from the compulsory excess. This would increase the price of the insurance premium up at the start.
It is well worth having a look online at how much it would decrease if you push the voluntary excess up. Keep in mind though it would increase the amount of money that you would have to pay to make a claim.
Car security is a big factor in car insurance. Vehicle crime can increase your car insurance.
As such then taking a few extra steps can cause the car insurance to be lowered. For example the vehicle to have a security device such as an alarm, although this depends on the age of the car as all modern cars have an alarm.
Where you park your car during the day and night can also be a factor. Whilst you are at home where will the car be parked? If it is on the road then it is still at risk of being damaged or becoming susceptible to a crime. If the car is parked on a driveway then the danger is mitigated as it is off the road and in sight of the home.
However it isn't actually always cheaper parking in a garage than it is the driveway. There are more accidents involving cars and garages than you think, since many homes have garages built for older cars which were smaller, and as such this has risen the car insurance for those that use a garage. Some insurers also look that if you are broken into the they have instant access to your vehicle as well. However this will vary between insurers and even on where you live.
The Car itself
Although there are lot of things insurers look at the most important ones are the driver and the vehicle.
Different makes and models will all have their different prices and as such the type of vehicle you have could be the one saving you money. As a general rule of thumb then more expensive the vehicle is then the higher the insurance as it will be more expensive to replace in the event of a claim. The more expensive it is then the higher chance it attracts unwanted attention as well.
The more modern the car is will also be a factor as it will benefit from better safety ratings.