Top 10 tips for cutting the cost of car insurance

There are many factors that affect your car insurance that you can’t easily control, such as your age, years of driving experience, job, and where you live. But, says Kasey Cassells, insurance expert at uSwitch.com, if you’re serious about saving on your car insurance there are plenty of things you can do to reduce the cost of your premium.

The type of car you drive can make a huge difference to the cost of your car insurance. Not only are some cars more expensive to repair or replace than others, but some models are seen as high risk because they are frequently involved in claims. For a lower premium choose a smaller car with better safety features.

2. Keep it safe

Insurers will offer you a more affordable premium if you do your best to keep your car out of harm’s way. If possible, keep your car in a secure garage or driveway overnight, or install additional security features, such an alarm or tracker.

3. Use it wisely

Car insurance premiums are usually more affordable for those who drive fewer miles — the more often you drive, the more likely you are to have an accident. Your MOT certificates will show mileage from previous years, or you could track your weekly usage and use this to estimate your annual mileage. (But make sure you don’t lie about your mileage just to get cheaper car insurance — if you have to make a claim and your mileage doesn’t match up, your insurer may not pay out!)

4. Pick the right cover

Most insurers offer three levels of cover: third party; third party, fire and theft; and comprehensive. Third party is the minimum level of cover legally required to drive in the UK, but, surprisingly it is not always the cheapest option. Providers are actually often able to give the best deals on comprehensive cover — so make sure you do your research.

5. Consider a black box

Telematics policies (also known as black box or pay as you drive policies) are another great way to save. As part of a telematics policy your insurer will install a small device in your car, and then note your driving habits and adjust your premium regularly, based on the times you drive and the quality of your driving.

6. Increase your excess

Insurers base their premiums on how much they are likely to pay out in the event of a claim. By opting to pay a higher voluntary excess, you are lowering the cost to the insurer by essentially offering to pay a larger part of the claim yourself. This is a great way of cutting the cost of your premium, but remember this amount will come out of your pocket if you do need to make a claim. Choose an excess you can afford to pay, and make sure the excess cost is no higher than the value of your car.

7. Add a named driver

You may consider yourself a safe driver, but insurers will group you into a high-risk category if you are have recently passed your test, are under the age of 25, or have previous claims or convictions. If a responsible and experienced driver is likely to use the car, adding them to your policy may reduce the cost of your quote. Remember, you must be named as the main driver if you’re the one driving the car most regularly — adding another driver to a policy just to get a cheaper quote is known as fronting and is a form of fraud.

For every year you drive without making a claim on your insurance, you will earn a no-claims bonus. A maximum no-claims bonus can result in savings of up to 80% on your insurance costs. There’s no way to speed up this process, but you can improve your chances of getting cheaper car insurance in the future by protecting your no-claims bonus for a small fee. Your current insurance cost will increase slightly, but you could see big savings in the long-run if you need to make a claim as you would otherwise lose your accrued discount.

9. Pay upfront

Although paying upfront for your car insurance can be a big hit to your bank balance, it can save you a considerable amount over the year. By paying for your car insurance in monthly instalments, you are essentially taking out a loan from the insurer with added interest rates. If you can afford to pay the annual cost upfront, you could save up to 20%.

10. Shop around

One of the best ways to save on your car insurance is to shop around and compare insurers. Even if you’re happy with your current insurer, it’s likely you’ll save on your renewal cost by comparing quotes from other providers. At the very least, check the cost with different providers when you get your insurance renewal letter.