You are here because you want to get a good deal on your car insurance , and shopping around is the best thing you can do. However, there are other things you should be aware of that could reduce your car insurance premium, and that’s why we’ve constructed a list of Top Tips for you.
Read through the whole list, you may learn something that could dramatically reduce the cost of your car insurance.
Park smart - parking your car in a secure location such as a locked garage or a secure designated off road parking spot will potentially reduce your car insurance premiums.
Buy in bulk - many of the larger companies that offer car insurance also offer other forms of insurance like home and life insurance. You may receive a discount for buying multiple forms of insurance with the same company.
Be alarmed - Thatcham-approved alarms are recognised by all insurers and most will discount your premium if you have these fitted.
Pay up - insurers charge a high rate of interest, around 15% APR on average, to allow you to pay your premium in monthly installments. It is much cheaper to pay your premium in one lump sum.
Buy online - financial products on the Internet are generally cheaper than traditional methods such as by post or over the telephone. Car insurance is usually about 10% cheaper online.
Shop around - if you want a deal you’ve got to be prepared to look for it. Some companies only provide policies for a specific market niche e.g. Esure only accept application from drivers with more than 4 years no claims bonus for example, so if you fall into their category you can potentially make big savings.
Consider the insurance rating - some cars are deemed to be of a much higher risk than others. When you are buying a car, check out its insurance group rating as car insurance premiums vary greatly between insurance groups. The cost of a group 1 car will be a tiny fraction of the cost of insuring a group 15 car.
Improve your driving skills - many insurance companies will provide a discount for having passed an advanced driving qualification. Consult individual car insurance companies for their policy in this area, and visit http://www.iam.org.uk for more information.
Savings in numbers - if you have more than one car, you may be able to get a multi-car discount which allows a significant discount on all your policies if you insure multiple vehicles with them.
Go Third Party - if your car has a low replacement value, it’s probably not worth going for fully comprehensive car insurance .
If the car gets written off you would be able to afford to replace it, whereas if you don’t write off the car you will make a considerable saving.
Negotiate your excess - you will be able to reduce the cost of your car insurance considerably by choosing the largest excess the insurance company offers.
Mind the add-ons - visual and mechanical changes to your vehicle may increase the insurance group.
If you make any changes to you must check you are fully insured before taking to the road. You are also likely to pay higher car insurance premiums if your car has been modified.
Think of the bonus - a full no-claims bonus can knock up to two-thirds off an car insurance premium.
If you suffer a minor accident try and avoid claiming on your insurance or next year the premiums may well increase, however you can avoid this by asking your insurer if you can pay a small additional premium to protect this bonus.
Young driver equals high premium - young drivers always have the highest car insurance premiums but these can be significantly reduced by buying a low value car that also has a low insurance group rating.
Declare low mileage - if you only drive a limited amount of miles a year, arrange a low mileage insurance policy. However be aware that aware if you drive over the agreed limit you may find yourself uninsured!
The cost of importing - your car may be cheaper bought from abroad but the insurance probably won’t be! The parts can be more expensive and difficult to find, so take this into account unless you’re buying a car fully catered for in the UK (Citroen, Renault, BMW etc).
The older you are, the lower the premiums - if you are that bit older it’s worth shopping around the insurance companies that specialise in the mature driver market, you may find substantial savings are available.