A Quick Guide to Saving Money on Car Insurance

The purpose of this guide is to provide some simple tips to save money on your car insurance.

By reading this guide you will learn that there are some basic things everyone can do to reduce the cost of their car insurance bill.

When buying, compare a number of car insurance quotes

Getting a number of car insurance quotes and comparing them is a great way to save on your next policy. There can often be large variances in price between one insurer and another and the only way you’ll find out is to compare. Remember to think about more than just price, you may find that one policy costs slightly more than another but includes additional extras like breakdown cover or a guaranteed courtesy car which makes it a better option.

Use our quick and easy comparison tables to compare car insurance.

A higher excess may mean a lower premium

A lot of car insurance companies will allow you to voluntarily raise your excess, which is the amount you have to pay in the event of a claim. If you choose to do this it can result in a lower premium although you should carefully consider if paying less upfront but with the risk of possibly having to pay more if you have an accident is the right decision for you.

Protect your no claims bonus

If you have a minor accident it may not be worth claiming for the damage. No claims bonuses can result in up to a 75% discount on the cost of your car insurance and keeping this intact may result in you saving far more money in the long run than what you will get back for a minor claim. Most car insurance companies stipulate that you should advise them of any accident whether you’re making a claim or not and it is recommended you do this.

Pay annually instead of monthly for your policy

If you can afford it paying for your car insurance annually will result in a saving over paying monthly. When you pay monthly your insurer will arrange for this through a finance company and you will be charged interest on what essentially becomes a lone, this rate of interest can be high and adds to the cost of your insurance.

Cut out the extras you don’t need

It’s now popular for car insurance companies to include added extras with their policies. These may include cover for driving in the EU, a guaranteed courtesy car or free breakdown cover. Of course all these things have a cost and this cost is recovered by the car insurance company in the price of your premium. If these extras don’t seem necessary seek out a basic policy with no added extras.

If you opt for additional extras check you’re getting the best price

If a car insurance company offers you extras at an additional price to your basic cover make sure you’re getting the extra at the best price. If they offer you breakdown cover for £75 per annum check that you cannot get this cheaper elsewhere.

Make sure your car is safe and secure

If possible keep you car in a locked garage or parked in your own drive way, this will often result in a reduced cost for your insurance. It may also be worth considering adding a certified alarm and immobiliser to your vehicle if it doesn’t already have one. While doing this will have an upfront cost it will almost certainly result in a reduced insurance bill. Before doing this be sure to check the security system you’re considering is fully certified by the major car insurance companies.

Become a better driver

There are a number of advanced driver courses available, aside from making you a safer driver and so less likely to cause an accident these courses can result in a reduced insurance premium. Check with your insurer to see which course they think is best.

Talk to a specialist

If you require specialist car insurance or just want some advice from a neutral party talk to a car insurance broker. A good car insurance broker will be able to perform a quick market comparison for you and advise on the type and level of cover that fits your particular circumstances. Some brokers may also have access to deals not available directly to the public.

Please remember, the content published here and across the whole site is for general informational purposes only and is not, and should not be construed as financial advice. We recommend you take professional advice before committing to any financial arrangement.