Motorists have many costs to cover each month, which can be tough, particularly during a time in which the cost of living is rising. One of the biggest expenses is insurance, but you should know that there are ways to save money on your next policy that could make a big difference to your monthly finances. Keep reading to discover how you can save money on your next car insurance.
Factors Impacting Price
First, it is helpful to look at the factors that impact how much your insurance costs as you will notice that there are some controllable factors. There are many factors that determine the cost of your insurance policy, including:
- Make and model
- Expected annual mileage
- Driving history
How to Save
So, what can you do to save money on your next car insurance policy? As always, one of the best ways to save money is simply to shop around. Instead of renewing, try comparing quotes online and you might be surprised at how much you can save. Additionally, if you are changing vehicle then look for something that is in an affordable car insurance group – this will usually be a used car that is not too powerful.
There are a number of other steps that are worth trying as well. If you are able to, you will find that you can save a few hundred by paying for car insurance annually instead of monthly. Increasing your voluntary excess is also worthwhile, but just make sure that you will be able to afford this if you end up in an accident. You can also take a driving course, install a dash cam and add security devices like an immobiliser or tracking device.
Consider Gap Insurance
It might seem counterintuitive to add another type of insurance when you are looking to save money, but you might find that gap insurance ends up saving you thousands of pounds if you were to get into an accident and the vehicle was written off. In this situation, your insurance provider would only pay the current market value of the vehicle. Cars depreciate by over 50% after three years, so you could find yourself significantly short and unable to afford a suitable replacement if the vehicle is written off. Gap insurance provides financial protection and peace of mind.
Car insurance is a major cost for motorists to cover, but it is also an essential one. Fortunately, there are always ways that you can lower the amount that you have to pay on your next policy and this could make a big difference to your finances while still ensuring that you are getting the level of cover that you need. This post should help and will hopefully enable you to save money on your motoring costs.