How much you pay for insurance can make a sizeable difference to the overall cost of owning a car, so it’s important not to pay more than you need to. At the same time, the main reason for getting insured in the first place is to help you out if something goes wrong, so it’s also essential to have the right cover for your needs.
Here are our top tips to avoid over-spending on insurance:
- Factor in insurance from the start
It’s easy to be seduced by the upfront price of a new car, but remember that it doesn’t include the cost of insuring it for the road.
The more powerful and more valuable your car, the more expensive it is likely to be to insure, so don’t stretch yourself to the biggest list price you can manage, as your insurance premiums may come as a surprise.
- Steer clear of modifications
The more powerful and more valuable your car, the more expensive it is likely to be to insure. Souped-up engines, advanced in-car entertainment systems, and even leather upholstery can all bump up the cost of your premium.
If you’re considering modifying your car, or buying a used car that has been modified, it’s important to check what effect the extras will have on your premiums.
Once you have an idea of the difference in premium from a more standard model, work out what the total cost will be over the length of time you expect to own the car – this will tell you roughly what the true cost is. Knowing this, you can make an informed decision about whether they’re really worth it.
- Honesty’s the best policy
Your insurance is there to help you get through unfortunate events that could otherwise cost you large amounts of money. However tempting it may be to shave a few pounds off your premium by fibbing about the details, it could turn out to be a false economy.
If you get caught being dishonest, your insurer has the right to decline claims, cancel your policy, or charge you the correct premium as a lump sum. If your policy is cancelled, you’ll need to declare this on future applications, which can make finding affordable insurance more difficult in future.
So the wisest move is to play safe and be completely honest – that way you can be sure you have the right level of cover for your needs.
- Get to grips with your mileage
How far do you drive in a typical year? It’s a difficult thing to guess off the top of your head, but that’s what a lot of people do when they apply for cover.
Mileage can play a part in setting your premium, so if you overestimate you may end up paying more than you need to. On the other hand, if your guess is actually way under the realistic distance, this could mean you’re not covered.
The best way is to look at the odometer in your car to check how many miles you clock up in a known period of time and use this to work out how far you really go in a year. Another easy way is to check your service history documents, as these should include yearly mileage.
- Park your car off the road if you can
Another factor that can play a part in setting your premium is where your car ‘sleeps’. Owners who use a driveway or garage could pay less on average than those who keep their car parked on the street.
But if off-road parking’s not an option for you, don’t be tempted to fib, as this could lead to you not receiving a pay-out if you do need to make a claim.
- Shop for car insurance not only at car insurance comparison sites
Yes you can find many popular companies such as LV or Swinton on price aggregators but it is actually worth checking also companies which are not listed there, insurer such as: Aviva, Direct Line or Zurich.
- Do not think about being loyal unless you can haggle the next year price
As weird as it is staying loyal with your insurer does not pay off so switch before your renewal date (never choose auto- renewal).
- Cover an extra driver
Adding a responsible driver to your policy may decrease car insurance price not only if you are a young car driver.
- Carefully describe your profession
Use this tool to see if some tweaks can save you money on your next policy.
- Find out all you need to know about your excess
If your vehicle gets stolen or damaged excess is the amount of money, which you will lose instantly at the time of raising a claim. The higher the excess the lower the premium and vice versa.
- Lock your quote
I checked that out myself I run the same quote for a few consecutive days and guess what the price was different almost every time, thankfully I saved them in my account so when buying the insurance was able to get the best price on it when referring the lowest quote price saved in my account. So setting up and account does make a sense.
- Whatever you do get a cashback
Some insurance companies offer a generous cashback up to £60, so check TopCashBack or Quidco before buying the policy.
If you think about buying a car read my old post on that subject.