Two thirds of Brits changing their motoring habits
Two thirds of Brits (67 per cent) admit record fuel prices coupled with the rising cost of car insurance have taken their toll on their attitudes to motoring, according to new research from moneysupermarket.com.
The comparison site asked site users whether rising insurance and fuel costs would affect their next choice of car. Nearly half (48 per cent) say they will choose a more fuel efficient model next time, while one in ten (11 per cent) will buy one that is cheaper to insure. Another eight per cent say they'll use public transport instead to combat costs.
Pete Harrison, car insurance expert at moneysupermarket.com commented: "With escalating fuel prices hitting motorists hard in the pocket, I'm not surprised most are looking for ways to drive down the cost of getting behind the wheel - especially when the cost of insurance cover is on the rise too. Our analysis shows car insurance prices increased by 31 per cent in 2010 - or 44p per day.
"With prices on the up it is more important than ever drivers ensure they are shopping around for the best deals on insurance - those who do will reap rewards and make their hard earned cash go further."
moneysupermarket.com's top tips for lowering the cost of your car insurance:
Pay annually rather than monthly: Although annual payments require a larger initial outlay, in most cases the total cost over a year works out cheaper than monthly payments. Many insurance companies charge interest if you choose to pay monthly which can further increase the overall cost of your policy. If you cannot afford to pay for your insurance in one lump sum, consider using a 0 per cent purchase credit card and fund the premium on this. However, make sure you pay off the balance within the promotional period or 12 months whichever comes first.
Reduce your annual mileage: the more miles you drive, the more time you spend on the road and the more likely you are to have an accident. Reducing your annual mileage will bring down the cost of your premiums.
Change of job: Renewal quotes are based on that same mileage figure, so if you change your job or other circumstances mean you travel more or less than previously, you should always mention this to your insurer. If you can show your insurer that your usage has reduced then this can result in a lower quote.
Extra Lessons: insurers like people who are seen to be trying to improve their driving ability. A Pass Plus or IAM (Institute of Advanced Motorists) course can decrease your premiums - while you will have to pay for the courses, the potential savings in premiums makes up for this.
Vehicle Security: the more secure your vehicle, the less likely it is to be stolen, and the less likely your insurer is to have to process a claim. As such, car insurance companies will reward you for fitting things like an alarm and immobiliser if your car does not already have them. Check with your company to see what will decrease your premium the most, as some security fittings can be quite expensive - you want to make sure the outlay is countered by the saving on your cover. Where you park your vehicle is also important - garaging a car will bring your premiums down.
Driving behaviour: being caught speeding or committing other traffic offenses will increase the cost of your car insurance, or even jeopardise your chances of obtaining cover at all. The closer to the letter of the law you drive, the better - both financially and in terms of safety for yourself and others.
Modifications: if you modify your car in any way, you should tell your insurer. Performance or style modifications will always increase your premium - if you are searching for cheap car insurance you should keep any changes to a minimum.
Main Driver: if a car in the house is shared equally, but one driver has significantly more experience or fewer penalty points, naming them as the main driver (with you as a named driver) can save you money on your car insurance.