Reducing the Cost of Car Insurance

No one wants to pay more than they have to in this life, but when it comes to car insurance, there is a delicate balance between paying a reasonable premium and still making sure you have the level of cover you need, answering all questions accurately to avoid problems down the line. You will be pleased to learn that there are things you can do to bring down the cost of your car insurance, so let’s take a look.

Shop Around

There is little to be gained in loyalty these days; no claims can be moved between companies, so be sure to shop around. There are so many companies offering car insurance that comparison websites are an excellent place to start as they do the leg work for you. Be sure to check that the cover is what you are expecting and there is nothing hidden in the small print and see what other customers have to say about a company before deciding who to use. 

Increase Your Excess 

Every car insurance policy will have an excess that you will have to pay before the insurance starts to cover the costs. This usually comes in two parts, a compulsory excess which is dictated by the insurance company and not negotiable and then a voluntary excess. If you can afford more here, you will bring your premiums down when it comes to calculating the premium. 

Watch the Added Extras

All insurance companies will naturally try and sell additional products, in some cases, they will be well worth having, and in other cases, you can probably live without them. If breakdown cover is offered, get a quote with and without this element and see what the cost of external cover would cost you. It is often cheaper to bundle the two together but not always. Windscreen cover, legal cover and courtesy cars are frequently added, so check what they offer and whether you need then.

Pay Up Front 

If you can afford the yearly amount, then you are advised to pay it upfront. Paying monthly is usually a credit agreement, and you will pay interest and arrangement fees for the privilege. You may find companies that offer interest-free, but there might still be admin fees.

Agree on a Mileage Limit

If you calculate that you estimated annual mileage would be 7500 miles or less you might find that some companies will offer a discount if you keep below this figure. Companies may have their own mileage figures so ask around and see what works for you. In some cases, you might want to change your driving habits to bring your overall mileage down. 

Choose Your Car with Care

The bigger the engine, the more you will pay. That is a simplistic view, but there is a lot to be said for having a car with a smaller engine so have a look at what you choose. Older is not always better, so consider what you need and try and get something that is appropriate for your needs but lowers your premiums compared to bigger, higher emission vehicles.