Car insurance premiums have shot up 5.2% in the least year alone, but that doesn’t mean you’ll have to pay over the top for decent car cover.
According to Sainsbury’s Bank, drivers aged 40-50 have been hit with the highest increases (7%) in their car insurance premiums, while those aged under-25 are still paying extortionate amounts of money for car cover, with an average annual of £1,255.99. The average premium for all motorists now stands at £497.26.
Thankfully there are a host of things you can do to drive down the cost of your car insurance. We take a look at the best ones.
Never show loyalty
The most common mistake people make is simply accepting their current provider’s renewal quote. This is because insurers never reward loyalty, reserving all their most competitive deals to attract new customers instead.
If your insurer isn’t going to treat you well, then there’s absolutely no reason to stay with them. It may be a pain, but the savings can be significant – research from insurer Swiftcover.com showed that Brits waste a massive £1.9 billion a year simply by sticking with the same provider year after year.
Another great money saving tip is to apply for your cover online. Not only is it far easier, but you will also find handy discounts. This is not because online insurers are nicer people, it’s simply cheaper to do so - less administration involved, no need to pay call staff, etc.
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Couples should go in together
Co-habiting or married couples who take out a joint policy can save more than £100 on average, according to TescoCompare.
Yet despite the savings on offer, two thirds of couples (65%) don’t immediately notify their insurer when they move in together, potentially missing out on a lower premium. Almost half of couples (48%) wait to notify their insurer until their policy is up for renewal, while 17% admit to not adding their partner to their policy at all.
Tesco has another offer that could prove attractive to certain motorists. Anyone applying for its car insurance before the 2nd of April will be given a £50 voucher, which can be used either in store or at Tesco petrol stations.
Certainly £50 is nothing to be sneezed at, but this is only really worthwhile for drivers who fall into a cheap insurance category, such as those in their 50s. If you can get your insurance for £150, then you’re essentially getting a 33% discount on your premiums, which is a brilliant deal.
But obviously for motorists in more expensive categories like under-25s, a £50 voucher isn’t really important if you’re paying over £1,000 for cover. Make sure you shop around, as chances are good you’ll be able to find a cheaper quote regardless of the discount.
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Should you change your wheels?
The type of car you drive can play a huge role in the cost of your cover. Every vehicle is given an insurance rating of 1-20 by the Association of British Insurers, depending on how expensive your car is to repair, how powerful and how secure it is. Rating group 1 would be a very small and cheap car and group 20 would be a high powered or very expensive model, says Swiftcover.
Obviously changing your car is a fairly drastic option, so the savings would have to be pretty impressive to justify it. Apply for quotes online, comparing the price of cover for your current car with any other model you are considering. Regardless of which car you drive, avoid modifying it in any way. If a car is no longer a “standard model”, insurers will hike premiums notably.
By contrast, an alarm or immobiliser will push down the cost of your cover. But if your car doesn’t already have an anti-theft device installed, don’t rush off to purchase one just yet. In many circumstances the lower premiums won’t outweigh the cost of installing one. This is especially true if your car isn’t really worth much, or you aren’t planning on keeping it for much longer. Find out if it is worthwhile by applying for separate quotes – one with an alarm and one without – and comparing the saving to the cost of installing a device.
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Cover only what you need
We’d all like to have a policy that covers us for absolutely every eventuality, but these can cost a fortune. Give careful consideration to your individual situation and ensure you’re only paying for things you’ll really need: Can you get by without a courtesy car, or are you unlikely to drive abroad? Trim the fat from your policy and you’ll see your premiums plummet.
As a final point, make sure you are as accurate as possible when applying for cover. If you overestimate your mileage or your car’s value, you will end up paying more than necessary. Avoid the temptation to falsify some information to secure a cheaper quote, though. Far from saving you money, you’ll actually end up wasting it as your policy may well prove worthless when it comes time to claiming.
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