How to potentially save £100s on car insurance
As a young driver, car insurance is by far one of the biggest costs of motoring. In your first couple of years of driving, it’s not unusual to pay well over £1,000 each year – and that’s before you consider the cost of fuel, road tax and maintenance.
Fortunately, there are many simple steps you can take to help cut back your insurance costs – allowing you to keep your freedom without being priced off the road:
Third party insurance is not necessarily the cheapest
Traditionally, third party car insurance worked out cheaper, since such a policy does not cover your own car in an event of a claim. In recent times, insurers have noticed a trend of having to pay out more often for third party policies, rather than comprehensive ones. As such, these are now considered ‘high risk’, and you’re better off sticking to comprehensive most of the time.
Add additional drivers to your policy
Adding named drivers – especially ones that are likely considered low risk such as your parents – will have a drastic impact on your insurance quote. The insurers will assume you’re sharing the car with these statistically safer drivers, and are thus less at risk of making a claim.
Sort out your insurance well before the start date
If you want your insurance policy to start on the day you retrieve your quote, chances are you’re desperate one way or another to get on the road as soon as possible – and the insurers know this. They take advantage of these situations by hiking up the prices, knowing you have no choice but to pay. The sweet spot is to sort your policy out around three weeks in advance to avoid this sting.
Do not auto-renew your policy
You will almost always get a cheaper price by shopping around and comparing after your policy ends, rather than just letting it auto-renew. Your current provider will likely auto-renew your policy at an uncompetitive price by betting on the fact you’ll be too complacent to call up and cancel, so be sure to make the effort and save hundreds!
Consider multi-car cover
Insurers often offer multi-car deals, where you can insure multiple cars at the same household and earn yourself a discount. They give these discounts because ultimately it gives the insurer more customers, but you’ll definitely be benefiting, too.
Honesty is the best policy
Don’t be tempted to twist the truth (e.g. with your mileage, job occupation etc.) to try and get yourself a cheaper quote. Should you have to claim, it won’t take long for insurers to catch you out. If they do, they may completely invalidate your insurance – leaving you massively out of pocket.
Legitimately adjust your job title
It’s likely your job can be called multiple things and still be relevant. An editor and a journalist is arguably the same thing in many respects, and yet if you put your occupation as a journalist, you’ll end up paying much more than an editor. Experiment, but stay honest.
Telematics is the use of a ‘black box’ that monitors driving parameters such as speed and acceleration using GPS and accelerometers. Allowing insurers to keep an eye on your driving often results in a much lower policy price. Be sure to pay attention to the small print and potential curfews, though!
Set the right excess for you
The excess is what you pay in the event of a claim before your insurer pays out themselves. Setting yourself a high voluntary excess will likely bring down your policy price, but be careful, since this same high voluntary excess will have to come out of your funds should you claim! It’s therefore a careful game of balance.
Take the time to research and compare
Don’t just take out insurance from a provider just because you saw them on the TV. Using price comparison tools will show you various providers back-to-back, allowing you to see instantly who can offer the best deal for you.
Using these simple tips will help you save potentially hundreds, and make driving just that little bit less expensive for you!