Saturday, August 20, 2022
UncategorizedHow to save money on car insurance

How to save money on car insurance

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If you drive a car, car insurance is likely to be one of your biggest expenses. With everyday budgets already feeling the squeeze, you could be tempted to cut back on the cover you need. But at mustard.co.uk, they don’t believe you should have to compromise on protection, so here are 15 ways you can save money on your car insurance.

Photo by Oli Woodman on Unsplash

1. Consider all levels of cover

Third party only is the minimum level of cover you can buy. In the past, that often meant it was the cheapest option but that’s not always the case now. As contradictory as it might sound, choosing comprehensive insurance, which is the highest level of cover available, could actually cost you less.

2. Pay upfront

Paying for your policy in instalments might be convenient but it means you’ll pay more overall as interest will be added.

3. Build up your no claims bonus

For every year you drive without making a claim on your insurance, you earn a no claims bonus (NCB). The bonus is a discount on your premium, so the more years of no claims you have, the bigger your discount is going to be. In some cases, it could mean shaving up to 70% off your policy price. With that in mind, think carefully about what you claim for.

4. Choose your car carefully

As a rule, larger, more powerful and desirable cars cost more to insure. That’s simply because they’re at greater risk of collision and theft. If money is your chief concern, choosing a smaller car can save you money on your insurance.

5. Keep your car as secure as possible

Cars that are difficult to steal typically cost less to insure. Ideally, that means being able to keep it in a locked garage overnight or on a private driveway. If on-street parking is your only option, investing in an immobiliser can help.

6. Avoid car modifications

Modifications can increase what you pay for insurance as changes can make your car more expensive to repair. If you’re particularly  keen to personalise your car, check how it could affect your premium with your insurer.

7. Increase your excess

This is a quick way to lower your overall premium. Don’t forget though, you’ll need to pay your excess if you want to proceed with a claim, so whatever amount you agree to, still needs to be affordable.

8. Consider a telematics policy

Also known as Black Box insurance, these policies monitor your driving using a telematics device fitted to your car. Consistently good driving (based on speed, acceleration, cornering, and braking) can help lower your premium relatively quickly in comparison to building a no claims bonus. 

9. Add a named driver

If you’re a new or young driver, adding a more experienced named driver to your policy can lower your premium. This is because the assumption is that you’ll spend less time behind the wheel (and therefore are less likely to be involved in an accident and make a claim).

10.  Complete an advanced driving course

If you complete an advanced driving course, some insurers will reward you by discounting your premium. However, before you rush off and sign up for anything, check which courses your insurer recognises and weigh up whether the discount is worth the cost of the course.

11.  Be accurate with mileage

Overestimating your mileage can mean you pay more for car cover than you really need to. After all, the more miles you cover, the greater the chance of being involved in an incident and making a claim.

12. Variation of job description

What you do for a living can affect your premium so it’s worth trying variations of your job title, for example, nurse versus sister or headteacher versus teacher. Naturally the job description you choose should still reflect what you do, if it doesn’t your insurer could cancel your policy which can make it harder to find insurance in the future. 

13. Only buy what you need

It’s tempting to add features to your car insurance policy ‘just in case’ for instance, European cover or a courtesy car but these can increase your premium. So, if you never drive abroad or have a second car at home, think twice about what you actually need.

14. Never auto renew

Auto-renewing might be easier but that doesn’t mean you should stick with your existing insurer. Although insurers can no longer charge renewing customers more than new ones, more often than not, there will be better deals available.

15. Compare quotes

Shopping around and comparing quotes at sites like mustard.co.uk really can help you save money on your car insurance. Not only will you be able to see a wide range of quotes from different insurers, you’ll be able to filter by what’s important to you. So, never compromise cover for cost and start comparing right now. 

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