10 Ways to lower car insurance costs

Car insurance costs can drive drivers crazy, but they are a significant cost factor when running an engine.

Here you can find out how to reduce your car expenses.

Failure to insure your car could result in a minimum fine of £300

If you click on a link in this story, we may earn affiliate revenue.

What is car insurance?

Owning and using an uninsured vehicle is illegal unless you have declared it off-road with the Driver and Vehicle Licensing Agency.

Failure to insure your car can result in a fine of at least £300 and six points on your license, as well as the possibility of your car being seized by the police.

Car insurance is useful because it can cover a large repair bill if your car is damaged in an accident, and may pay out if your car is stolen.

What does car insurance cover?

There are three types of auto insurance policies that offer different amounts of coverage.

Third party provider is the basic coverage that allows you to legally drive on UK roads.

Covers claims for damage to another person's vehicle and injuries you cause to another person in an accident.

Another option is third party fire and theft, which covers damage or injury caused by you in a car accident, as well as in case your engine is damaged by fire or theft.

The highest level of coverage is comprehensive.

This covers if your motor was stolen, and damage and injury to another person and your vehicle, as well as to you and your vehicle.

How much is your car insurance?

When it comes to car insurance, many factors come into play.

It depends on your age, the vehicle you drive, how often you drive and any previous claims you may have made.

Your job, where you live and where your car stays can also affect prices.

Many of these factors are out of your control, but here's how you can lower some of your auto insurance costs.

Also, read our guide to finding the best cheap car insurance for more tips.

Go fully comprehensive

Third-party coverage is often considered the cheapest because it has fewer features.

Full coverage policies may actually be cheaper, however, as investors may associate third-party coverage with higher-risk drivers looking for cheap deals.

A comprehensive job may also be less expensive if you need to make a claim because it covers the cost of repairing or replacing your vehicle that you would not receive through liability insurance.

Increase your surplus

There are two costs associated with car insurance, premium and deductible.

The premium is the amount you pay for your insurance, while the deductible is what you agree to pay each time you make a claim.

You can usually choose your own excess when you take out a policy, which can be up to £100.

However, the higher your deductible, the lower your premium, and vice versa, so you can lower the cost of insurance by agreeing to pay more if you need to make a claim.

You may be able to save money then, as long as you don't have to buy insurance.

Prepay

Insurance companies offer you two options when you buy your car.

You can usually pay either monthly or in advance.

Paying monthly helps spread out the cost of your coverage, but the insurance company charges an additional interest fee, so you actually end up paying more.

It can be difficult to get a lump sum upfront payment, but it can save you money because there are no additional fees.

Shop around before renovating

Insurance companies rely on customer inactivity to make money.

Auto insurance policies usually renew automatically when the policy expires.

This may be more convenient, but insurance companies rarely offer the best deals to their existing customers.

(m) How to find the best car insurance for your needs

If you use car insurance quotes based on many different factors, it really pays to look for the best deal for you.

New rules introduced this year prohibit insurance companies from charging existing customers more than new customers, but you can also save money by shopping around before your quote expires.

Use comparison sites or check directly with other insurers to see how much you can save and also see if your current provider can match or beat the competition.

Check your mileage

The insurance company takes into account how much you use your car when setting prices.

Be asked how many miles you travel each year, z. B. up to 1000, 2000 or 3000.

It may be helpful to check with your insurance company if your driving habits change, or to consider how much you would pay if you drive less or overpay since taking out your policy.

Change your job title

Some jobs are considered riskier than others for insurance reasons.

Making small but subtle changes to your job title or occupation can save you money.

For example, if you list your job as a journalist, the insurance company may assume you drive to many risky places to gather exclusive stories.

However, it may be more accurate to call yourself an editor, writer or publisher if you work primarily in an office, which can lower your premiums.

Lying about your job can invalidate your policy. Therefore, make sure all changes are legitimate and correct.

Add a driver

Drivers who are younger or have a history of claims can expect higher premiums.

But you can lower your insurance costs by sharing your car with someone else who has a decent insurance history.

A young driver can add one of his parents to his policy and this can lower his premiums because the insurance company can be sure the car is sometimes used by a more experienced driver.

Change your car

The vehicle you drive may increase your insurance costs.

Insurance companies group cars into specific insurance groups based on their make, size and parts cost.

Expensive, faster, higher quality cars may cost more because they may be at a higher risk for an accident.

It may be worth looking for cheaper models or other brands if you want to save money on your insurance.

You can check the area where your vehicle is located on Thatcham's website.

Consider a black box insurance policy

An alternative to paying a retainer or the monthly cost of your insurance is to use a black box or telecom insurance policy.

This way, the insurance company can put a device in your car that tracks how you drive, such as speed and braking.

You get a driving score and then your reward can change based on your performance each month or upon renewal.

The idea behind it: The better you ride, the lower your insurance premiums will be.

Use cashback sites

Websites like Quidco and TopCashback may pay you cash back for buying car insurance from certain providers.

Check their websites for quotes and you can click to complete the switch.

This shouldn't be the main factor in choosing an insurance policy, although you need to make sure it provides the right level of cover and is suitable for your needs.

Don't forget to shop when you secure your home. Learn how to find the best homeowners insurance policies.

Even the cost of vacation replacement can vary. How to find the best travel insurance.