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Ten premium reducing tips

Published 04 April 2013

With the price of public transport skyrocketing, petrol not looking as though it’s going to drop any time soon and pay cuts going on left, right and centre, the need to find ways to cut spending is growing day by day.

Car insurance is one of those things that we can’t get away with avoiding; if we’re fortunate enough to have a car, we must cough up the cash. So to ease the pain of parting with so much money, here are ten tips to help cut these costs.

    Shop around

Each car insurance company assess your risk in different ways, so it’s important to request quotes from several different companies to ensure you get the best deal. Make use of the many price comparison sites out there and you’re sure to find the best car insurance companies there are.

    Park carefully

Secure overnight parking can drop your premium by around 5%, so consider your options when choosing your parking spot. Those kept in a drive or garage are less at risk of theft or damage than cars that are left in the street over night.

    Occupation

Different occupations come with a higher risk and therefore will boost your car insurance quote. It’s also worth noting that different occupations can be known by other things, for example, a lawyer is also known as a solicitor, so try switching the names about.

    Security

If your car doesn’t have any security features, your car insurance will automatically be more expensive than if it did. Consider getting an alarm system fitted to save money in the long run. If you drive an expensive, high performance car, many insurance companies will insist on getting a tracking service installed before they even consider insuring you.

    Car selection

All cars are rated on a scale of 1-50; with group one representing the lowest risk and 50 the highest. These rates are based on desirability, the amount of power the car has and the likely cost of repair or replacement. Think about this if you are choosing a new car, as the slower, cheaper and more undesirable it is, the cheaper it will be to insure.

    Drive carefully

This one’s a bit obvious, but we’re going to remind you anyway. Remember that the more points you have on your licence, the more you’ll pay out for insurance. It’s not uncommon for one speeding offence to bump your insurance up by 5%, while if you’re caught drink driving or using a mobile phone while behind the wheel, your premiums could more than double.

    Add another driver

Adding another driver with a good driving record could have the affect of averaging out your risk and therefore lowering your car insurance. It will not always make the difference you want, but it’s worth trying out anyway. Never add your name as the main driver on a young person’s car when they drive it the most as it could cost you a lot more money than an extra £100 in the first place.

    Don’t modify your car

Any modifications that do not increase the security of your vehicle are guaranteed to make your insurance a lot more expensive than it needs to be as it makes the car more desirable. If you do make any modification, make sure you inform your insurer so as not to void your policy.

    Keep mileage down

The less you travel, the less likely you are to have an accident. Most insurance policies base their quotes on a 12,000 or 15,000 miles per year average, however, you can cap yourself at 10,000 or even 5000 per year. If you do go for this option, make sure you don’t go over the amount of miles you have set yourself. This money-saving tip is best for families with multiple cars.

    Increase your excess

If you’re willing to increase the amount you’ll have to pay before your insurance company does in case of an accident, you can save a great deal in the first place. Think carefully before you decide to choose this as an option however – would you be able to afford £1,000 up front if you were unfortunate enough to be in an accident?

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