Switching
car insurance could save you more money than the best cash ISA would earn you in a year and a half, a comparison site claims.
Taking ten minutes to
shop around for car insurance will save you an £207 on average, according to gocompare.com.
By comparison, it would take some 18 months to earn a similar amount by investing the maximum allowed £3,600 in the best paying cash ISA.
Save more, spend less
Obviously this isn't to say that saving money is a bad idea (even with the
abysmal rates on offer, it's essential we all keep a savings pot aside for a rainy day).
Rather, it highlights how easy it is to make dramatic savings on your insurance policies simply by taking the time to shop around.
And this is just one of many steps you can take to reducing the cost of your
car cover. We list the best tips below.
How to secure a cheap quote
Increase your excess: Research from insurer Saga shows that some 2.7 million motorists have increased their excess in order to secure a cheaper premium. Just make sure you will be able to pay should you need to make a claim.
Secure your car: Parking in a garage or even on the drive rather than the street can reduce the risk of theft and therefore often reduce the premium.
Take note of mileage: The amount of driving you do will obviously impact on the cost of your cover, so make sure you are insured for the correct number of miles.
Shop online: Insurers offer hefty discounts of up to 20% when you
buy your cover online. Just make sure you fill out your application form carefully, as small errors can be costly to fix. For example, many insurers charge an ‘amendment fee’ of up to £25 just to correct a spelling mistake in your name or address on the policy.
Add a partner: Younger drivers can dramatically reduce their premiums by adding an older driver to their policy. According to moneysupermarket.com, doing so can save you over £280.
Pay up front: When you buy car insurance, you will be given the option to pay for the year’s cover up front, or by monthly instalments. While the latter may be tempting, it’s also far more expensive, as most insurers will charge you an obscene rate of interest on the outstanding debt (often above 20%).
If you can’t afford to pay for your cover up front, you can always put the policy on a credit card that charges no interest on new purchases and pay it off gradually. Currently the best deal is the Halifax All In One card, which charges no interest on new spend for nine months.
