How to save money on your car insurance
Car insurance is a necessary evil - but that doesn't mean you should put up with paying over the odds. Here are 10 easy ways to save money on your car insurance:
1. Where you park your car has a big bearing on how much your car insurance premiums will be. According to AA Insurance, leaving your car overnight in a locked garage will save you 7% on your premiums if you live in a rural area or 35% if you live in an inner city.
2. Don’t automatically renew your car insurance each year. Apart from the fact that you will probably get a better deal from shopping around, your insurer is unlikely to take into account car depreciation.
3. Women drivers are recognised as safer then their male counterparts, and some female-only insurance companies claim to reflect that in the price of their policies. But if you are a female driver, you shouldn’t automatically pump for woman-only insurance but should shop around the whole market.
4. Fit an alarm or immobiliser, or use a steering wheel lock as these measures will cut the cost of your insurance premium.
5. If you are a new driver consider getting an experienced driver added to your insurance as this can significantly reduce the cost.
6. Pay your car insurance upfront rather than monthly through direct debit.
7. Don’t accept any special services your insurance company offers you, such as breakdown cover, before checking to see if you could buy it more cheaply elsewhere.
8. If you don’t use your car every day, then consider ‘pay-as-you-drive’ insurance as this could work out cheaper for you.
9. Consider opting for an excess of £500. This will bring down your premium as the insurer knows it won’t have to pay out for small claims.
10. Don’t buy insurance alongside a car. Research from uSwitch.com
recently found that manufacturers mark up policies by up to 10%. It
would be cheaper to go direct to the underwriter providing the cover -
or better still shop around for a best-buy deal.
This is more usually a feature of car insurance but it can also crop up in contents, mobile phone and pet insurance policies. An excess is the amount of money you have to pay before the insurance company starts paying out. The excess makes up the first part of a claim, so if your excess is £100 and your claim is for £500, you would pay the first £100 and the insurer the remaining £400. Many online insures let you set your own excess, but the lower the excess, the more expensive the premium will be.