Everything seems to be getting more expensive lately and, unfortunately, car insurance premiums are no exception. However, there are methods you can use to try and reduce these premiums.
When to Shop for Insurance
In the last part of 2024, the average car insurance premium has risen to £612. To try to reduce this cost, drivers can use it when they need to renew to their advantage. The best thing to do is to wait 21 days before the renewal date, as this is a good time to take advantage of the most competitive rates.
It may be tempting to just renew your insurance automatically if you feel overwhelmed by the number of deals out there, but this will probably lead to you overpaying. The quickest way to see what is on offer is to use price comparison sites to compare quotes and find the best deals.
Negotiating with Your Current Provider
Don’t be afraid to negotiate to get the best deal. After you find the best quote on offer for your car and circumstances, contact your current insurer and get them to match it or beat it.
If they agree, it can save you money without having the fuss of switching providers. Many insurance companies are happy to negotiate in order to keep their customers, so don’t be afraid to ask.
Tailor Your Policy
Making adjustments to your policy can also affect the cost of your premiums. You could increase the voluntary excess, remove extras like complimentary car hire or think about whether comprehensive cover is needed. If you need car hire excess insurance, websites such as Money Maxim have insurance comparison tools to help you.
Make Your Vehicle Less Expensive to Insure
Reducing the risks that might affect your car is another way you could save money. Steps you can take include parking your car in a garage or off-road or installing security measures like alarms, immobilisers or trackers. All of these things can make your car less appealing to thieves and will therefore reduce your insurance premiums.
Small changes that trim your premium
A few details on your policy can make a noticeable difference. Only list named drivers who use the car regularly, since it is easy to add someone for the odd day when needed. Adding a young, inexperienced driver will push the premium up, because they have no no-claims history.
A long no-claims bonus is one of the best ways to keep costs down, but check exactly what protected no-claims means on your policy. Raising your voluntary excess lowers the premium, although on a low value car the excess should not be set too high.
Security counts too. An alarm, immobiliser and tracking device can all reduce what you pay, and newer cars often have them as standard. Keeping the car in a garage overnight protects it from theft, which insurers reward. Finally, paying for the year up front avoids the interest that can come with monthly direct debit payments.
Extra savings for younger drivers
Young drivers often face the highest premiums, but a few approaches can help. Do not assume third party cover is cheapest. Insurers can see third party only drivers as higher risk, so a fully comprehensive policy is sometimes cheaper. Pay for the cover you need and nothing more.
Adding a second, occasional driver with a good driving record can bring the price down. It must be someone who would genuinely drive the car only occasionally. Naming a person as main driver when they are not, sometimes called fronting, is fraud that can invalidate the policy and lead to a criminal conviction.
Showing that you are low risk also helps. Security devices, a black box, safe parking and extra driving lessons can all count in your favour. Be wary of modifications other than safety ones, as they can push the price up, and always tell your insurer about any change so the policy stays valid. Avoid automatic renewal, since a new policy is often cheaper, and use quotes from elsewhere to ask your current insurer to match or beat them.