Whether you’re a new driver, seasoned senior, or just looking for a great deal. This article will give you our ten top tips to reduce your car insurance premium.
1. Add another driver to your insurance policy
One of the easiest and simplest ways to reduce your car insurance is to add another drive onto your policy. Both friends and family members can be added, so long as they hold a full UK driving license and have regular access to the car. You should however avoid adding anyone to your policy who has a history of accidents or lots of points on their license. If you’re trying to insure a young driver, adding an experienced driver to the policy can result in a significant reduction in price.
However, the policy itself must be in the name of the main driver. Getting a policy in a parent’s name, for example, is ‘Fronting’. Fronting is illegal and can result in the rejection of any insurance claims, should anyone have an accident.
2 – Don’t add any modifications to your car
It may be tempting to make modifications to a car, especially if you’re buying a cheap older car. However, even simple things like upgrading the stereo and speakers can increase rather than reduce your car insurance premium, as it makes your car more desirable to thieves. Modifications to the car body, engine and exhaust should be avoided, no matter how cool they look! Cars with these sorts of modifications incur a high annual car insurance premium, as they tend to be driven by younger driver who are statistically more likely to crash.
There are some modifications you can make to a car that can help to reduce your car insurance however; these include car alarms and dash cameras. In fact, some insurance companies are now offering up to 10% off if you have a dash cam fitted to your car. It’s important to remember that whatever sort of modification you make to your car you must declare it, as failure to do so can result in claims being rejected. If you’re thinking of making any modifications, it’s worth giving your insurance company a call first to see how much it would impact the premium.
3 – Pay annually, not monthly
Car insurers offer you the option to pay your premium monthly or annually. It might seem expensive to may it all in one go, but if you can afford it it’s a simple way to reduce the overall cost of your insurance. Paying your insurance monthly is more manageable, however you end up paying more through interest charges.
4 – Increase your excess
Increasing your vehicles excess (the amount you pay upfront if you make a claim) can significantly reduce your car insurance premium. This is an ideal choice for those who have had an accident, received points on their license or are a young driver. Just be careful you don’t increase your excess by too much, especially if you drive a lower value vehicle.
5 – Add a black box
A black box is small tracking devise which insurance companies can fix to your car. It monitors your speed, location, distance, cornering and much more. Adding a black box to your car, especially if you’re a young driver, can significantly reduce your insurance premium as it gives you the chance to be judged on how good a driver you actually are.
There are some downsides to this system though. Some policies will penalise driving in anti-social hours such as at night, as this is when most serious accidents occur. The other thing to note is that a black box policy is paid monthly. This means you can be rewarded with lower premiums for good behaviour, but you can also be penalised with higher premiums if they deem your driving as unsafe.
6 – Do less mileage
In simple terms, the lower your annual mileage the better for your pocket. This is largely due to the increased risk of an accident the more miles you drive. It’s important to be as accurate as possible when informing your insurer of how many miles you cover, as an inaccurate number may result in any future claims being jeopardised.
7 – Get regular insurance quotes and shop around
Online comparison websites make it easy to find the best deal for your car insurance. Simply enter all your details and browse the recommendations. Using more than one comparison website can give you the best idea of what your choices are.
Make sure you are comparing like-for-like policies – one policy may appear much cheaper but might be missing something your current policy covers. Don’t forget to contact your insurer once you have a quote from a comparison website as they may be able to match or better it.
8 – If you have a minor bump, don’t claim
This may seem counter intuitive but it is often cheaper to sort out minor damages yourself than it is to claim through your insurer. If you claim for a minor bump you’ll have to pay your excess, both voluntary and compulsory, as well as an increase in your car insurance premium next year when it comes to renewal. You can also use one of the biggest factors attributed to low insurance premiums, your No Claims Bonus (NCB).
However, you must inform your insurance provider of the minor incident as failure to do so could result in being denied insurance in the future.
9 – Take an additional driving course
The pass plus scheme is another way for new drivers, and those who have recently had an accident, to reduce their car insurance premium. Most insurers recognise the scheme which teaches safe driving on motorways and at night. After you’ve completed the scheme be sure to tell your insurer – this should hopefully reduce your car insurance premium.
10 – Be precise about your job title
Your job title can really impact your annual insurance premium. It’s tempting to give a generic answer such as marketing, sales or nursing, but if you’re precise with your title (such as Digital Marketing Executive, National Sales Director or Senior Medical Officer) you could see a reduction in your premium. Insurance companies keep detailed lists of claims by profession so if your quote is high, it may be down to other drivers in your profession.
However, you must always be truthful when telling your insurer your profession or risk invalidating any future claims.