Car insurance can be one of the largest outgoings related to car ownership. Certainly, after the purchase and maintenance of the vehicle itself, insurance is an often wince-inducing cost to deal with.
But there are a few ways to help bring down the cost of insurance. We’ve taken a look through some of the key measures you can take to help make premium costs a little more bearable. And remember, driving without insurance isn’t an option – it’s a legal requirement, and getting behind the wheel without any cover in place carries the potential for a large fine and penalty points on your licence.
It might sound simple – and in truth, it is – but shopping around can be one of the quickest ways to drive down the cost of your insurance. If your premium is up for renewal, refrain from automatically allowing it to roll over. Instead, look around to see if you’ve got the best deal.
Comparison sites can be a great place to start, but picking up the phone and contacting insurance providers directly can also prove useful.
Check your mileage
With people staying closer to home as a result of the coronavirus outbreak and the resulting restrictions, you might not be travelling as far as you had been pre-Covid-19. It could be useful, therefore, to see what the mileage limit for your policy is.
Travelling a smaller number of miles will result in lower premiums. So if you’re not travelling as far and don’t intend to in the future, then it could be worth dropping your mileage limit to help save some money.
Pay for your policy annually
Paying for your car insurance via a monthly direct debit is a way that many people choose. In truth, it’s an option that is a necessity rather than a choice for a lot of drivers with the larger yearly premiums representing a considerable chunk of cash.
However, if you’re in a position to do so, paying for your policy in full can save money in the long run. Paying monthly incurs interest, so opting for a full payment avoids this.
Increase your voluntary excess
Voluntary excess is an amount you’ll pay towards repairing a car if it’s damaged. Setting a larger voluntary excess will drive down the amount you’ll pay for an insurance premium, making for lower monthly or yearly costs.
However, be prepared that in the event of an accident you will need to pay this excess – so ensure that you’re able to pay the full amount should you have an incident.
Review the type of cover you need
The type of cover you’ve got often has quite an influence on how much you pay for insurance. Fully comprehensive is the most often used since it provides a more rounded coverage, but if you’re driving an older, more inexpensive car then you could think about reverting to third party, fire and theft cover.
Given that it provides less overall cover, then it should cost less. But just be sure to check – sometimes on comparison sites, comprehensive cover can result in lower premiums than third party. It’s a weird quirk which sometimes shows up.
Use a garage if you have one
Have a garage which is packed with garden equipment and other odds and ends? It could be worth clearing it out in order to park a car in there, as it can drastically affect how much you’ll pay for insurance.
If insurers know you’re parking a car in a locked garage each night they know it’s safer than out on the street, so you’ll likely see a drop in premium cost.
Review the type of car you have
It’s no secret that smaller, less powerful cars cost less to insure. It’s why, if you’re keen to reduce your insurance outgoings, that reviewing the type of car you have could really save you money.A smaller, lower-capacity engine will drop your premium costs considerably.
Consider changing the usage on your policy
If you’re now working from home as a result of the coronavirus pandemic, then it could be worthwhile changing your insurance policy terms to ‘social only’, providing you’re not planning on doing any commuting.
Only commit to this if you’re sure that you’re not going to be commuting – if you have an accident and you’re found to have been using it out of the terms of your insurance agreement, then a provider might not pay out.