6 ways to lower your car insurance
6 ways to lower your car insurance
The average cost of an annual car insurance premium in 2014 was £747, but for those under 22 years of age the price increases dramatically. There are a number of useful ways to reduce your premium, though – here are six ways to bring down the price.
1. Park your car wisely
Security shutters from Security Direct on your garage mean that you can always tell your insurer that your car is safely parked at night and that thieves won’t have access to your car should your car keys get stolen. In some areas of the country though, cars parked on roads can be cheaper to insure, this relates to the claims history of your areas so make a point of checking. Premiums are assessed by computers and not by common sense.
2. State your job description accurately
Every job title is evaluated by the insurance industry dependent on the risk that they feel it carries. According to the website Moneywise, if you call yourself ‘a restauranteur when you’re actually a café owner you’ll pay £800 instead of £700.’ In order to select the most accurate description of your job take a look at the Money Saving Expert job picker page.
3. Pay your premium in a single payment
Even though it might seem pricey at the time, you should always try and pay your annual premium in a single amount. Spreading the payment through monthly direct debits is far more costly as many insurers outsource this facility to third party, which will add an interest and handling fee to your monthly payment.
4. Add someone else to your policy
If you have added someone with a clean licence to your car insurance you will find that the premiums will go down. If this second driver also has never made a claim against an insurer this will also help. If the secondary driver also works in what is deemed a ‘safe profession’ by the insurer your premiums will decrease still further. Of course, conversely, if your secondary driver works in a risky profession, has speeding points and has made numerous claims against an insurance company, then this isn’t such a great option.
5. Never accept the first insurance quote
Don’t leave it until the last minute before you renew your car insurance. Also switch insurers if you find a cheaper quote elsewhere. If you do want to remain with your existing insurer don’t accept the renewal quote that you’re given. An article on the financial website Moneysupermarket revealed that ‘6 million drivers just accept their auto renewal quote,’ without query, which can prove costly.
6. Always check your policy
If you read your policy carefully you may find that that you are paying an excess for services that are already covered by another policy. For example if you belong to the AA or RAC these organisations may well offer you a courtesy car in case of an accident, so there’s no point in paying an excess for this service on your car insurance. Small print might be boring but it can become positively riveting should you discover that you are paying twice for the same service from two different organisations.
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