Whether you’re a new driver, seasoned senior, or just looking for a great deal. This article will give you our 10 Top Tips to reduce your car insurance premium.
1 – Put Someone Else On Your Insurance Policy
One of the easiest and simplest ways to reduce your car insurance is to add another driver onto your policy. It doesn’t usually matter whether they are family or a friend as long as they have a full UK driving license. You should 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. Be warned though; do not put the policy in the parents’ name. Getting a policy in a parent’s name with the young driver as a ‘named driver’ on the car when they are actually the main driver is called ‘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 very tempting, especially if you’re buying a cheap older car as a new driver, to want to make some modifications to the car. However simple things like upgrading the stereo and speakers can increase rather than reduce your car insurance premium. This is because it makes the car more desirable to car thieves.
Modifications to the cars body, engine and exhaust should be avoided. It may be cool to drive around in a slammed, flared and tinted car, but if you can’t afford to insure it, what’s the point. Cars with these sorts of modifications incur a high annual car insurance premium because they tend to be driven by young drivers, who are much more likely to crash.
There are some modifications you can make to a car that can actually help reduce your car insurance. These include car alarms and dash cameras. In fact some insurance companies are now offering a discount 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.
3 – Pay Annually Not Monthly
Auto insurers offer you the option to pay your premium monthly or annually. It might seem expensive to pay it all in one go, but if you can afford it, it is recommend to pay annually as this will help reduce your car insurance. Paying your car insurance monthly may seem more manageable, but you must remember that you will be paying monthly interest charges on top of your premium.
4 – Increase Your Excess
Increasing your vehicles excess (the amount you’d have to pay up front if you make a claim) can significantly reduce your car insurance premium. This makes it ideal for those who have had an accident, points on their license and young drivers. However, don’t increase your excess too high, especially if you drive a lower value vehicle.
5 – Add A Black Box
A black box is a small tracking device which the insurance company will fit 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 prove how good a driver you actually are.
There are some downsides to this system though. Some policies will restrict driving in anti-social hours, this usually means you can’t drive at night, as this is when most serious accidents occur. The other thing to note is that this type of policy is paid monthly. This means that you can be rewarded with lower premiums for good behaviour, but you can also be penalised with high premiums if they deem your driving as unsafe.
6 – Do Less Mileage
In very 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 is important to be as accurate as possible when informing your insurer of how many miles you cover as giving an inaccurate number may result in any claims being jeopardised.
7 – Get Regular Insurance Quotes And Shop Around
With the advent of online comparison websites it’s very easy to find the best deal for your car insurance. Simply enter all your details, and within a few minutes you get the results. It is also beneficial to use multiple comparison sites to ensure you have all insurers included. Make sure you are comparing like for like policies, one policy may appear much cheaper because it is missing something you currently have, such as being insured third party on someone else’s car or protected No Claims Bonus. It is also worth contacting your insurer once you’ve had a quote from a comparison website as they might 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 damage 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 lose one of the biggest factors attributed to low insurance premiums, your No Claims Bonus (NCB). You should still 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 first-time drivers and those that have recently had an accident to reduce their car insurance premium. The majority of 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 and it should reduce your car insurance premium.
10 – Be Precise About Your Job Title
You might not realise it, but being precise about your job title can have an impact on your annual insurance premium. It’s very tempting to give a generic answer such as marketing, sales or nursing, but if you’re precise with your title (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. If your quote is high it may be down to others in your profession. Always be truthful when telling your insurer your profession or risk any claims being invalidated.
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