Looking to reduce your car insurance?
by Natasha Christou Digital Marketing ConsultantIn Britain, it’s reported that there are over one million
uninsured drivers on our roads, which in turn increases premiums for those who
do insure their vehicles.
This is rather surprising as nowadays, there is insurance
for everything, even dog grooming insurance and there are ways to get premiums
down but car insurance is the most competitive.
For many people, a yearly payment is just too big of a lump
sum, so they must break it down into monthly payments. But, are you aware of
all the ways you can potentially reduce your insurance outlay?
As well as this, there are also many extra charges that you
may face as a car owner, including MOT charges, road tax and fuel allowance for
things like your daily commute. There are also the hidden costs to consider if
your vehicle unpredictably breaks down.
Here, with the help of Lookers, we look at the biggest
contributing factors and how exactly you can lower your car insurance!
Install a black box
Some insurers will lower the annual cost of your cover if
you fit a small box in your car that can help insurers to track your driving
methods. This will include aspects such as braking and speed via GPS, as well
as taking into account the time of day you drive.
This method is also known as telematics insurance and is
effective for young and inexperienced drivers, those who have a low annual
mileage, or older drivers who want to prove that they’re safe behind the wheel.
Increase your excess
Your premiums are based on how much your insurer is likely
to pay out if you claim. By choosing to pay a higher voluntary excess, you will
lower the cost of what the insurer will have to pay towards the claim.
Therefore, this can lower your overall insurance. However,
you must ensure that you choose an excess you will be able to afford and make
sure the excess doesn’t exceed the overall value of your vehicle.
Add others onto your insurance
It may seem strange that more drivers being named on your
insurance will bring down your costs, but that’s the case for many quotes. This
is because it helps the insurer tie more people into their service. This works
well for younger drivers who would usually be charged an extortionate amount.
Being named on their parents’ insurance can help reduce their outlay
significantly.
Get multiple quotes
It goes without saying that it’s important to consider your
options. Like any service, you should do your research. Many insurance
companies will attempt to ‘better’ the offer on the table by a different
provider, so be sure to know what you want and don’t just settle with the
first, or your current provider.
However, remember that cheaper isn’t always better. Check what is
included before agreeing to a cheaper cover.
Make sure your credit score is good
Having no claims bonuses are obviously a great help when it
comes to lowering the cost of your insurance. But, were you aware that your
overall credit score can also have a huge impact on your car insurance? That’s
because insurers take in the impression that if you’re responsible in your
personal life and with other financial situations, you are less likely to file
a claim.
Reduce coverage on older cars
While you may be tempted to always choose comprehensive
cover for your vehicle, be aware that choosing this coverage for particularly
old vehicles may not be cost effective. For example, if you buy one of the many
used cars for sale and your
insurance values the vehicle at £1,000 then you’re involved in a crash, there’s
a possibility that your insurer will just write your vehicle off.
Therefore, if your insurance is costing approximately £500
for comprehensive cover, it may not make financial sense to purchase it. Comprehensive cover is most cost effective
for those with new cars, or cars that have held their value.
While it’s a necessity to be insured when on the road, you
don’t have to pay over the odds to do so. Following the above guidelines can
help you reduce your overall payments — leaving you with extra money to spend
elsewhere.
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Created on Apr 15th 2020 09:15. Viewed 191 times.