7 Top Tips on Saving Money on your Car Insurance

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Getting car insurance is beneficial. However, one might often start reconsidering if it is actually worth the costs, especially when your car insurance renewal quote arrives. However, there are ways through which you could save money on your car insurance. Below are a few of them.

1. Compare insurance groups: insurers often offer their best deals to their new customers as a way of providing incentive to the customer for choosing them. Older customers rarely get such deals. Therefore, renewing your car insurance with the same insurance group might actually be getting you to miss out on some potential savings. It is advisable to compare prices to find the best car insurance deal so as to see how much you might be able to save by switching insurers. However, make sure that you compare like-for-like cover and see that voluntary excesses are set at the same level.

2. No-claims bonuses should be protected: the single best way to cut your insurance costs is by having a long no-claims bonus. If you have a minor damage, you should consider fixing it yourself rather than losing your NCB. The insurance policy however, should be checked carefully because the idea of a no-claims bonus often varies widely between insurers.

3. Get your car secured: installing an alarm system, immobilizer, or tracking device often qualifies you for a discount by some insurers. Also consider adding a backup camera to your car. If your car already has these features, be sure to declare them while buying your car insurance.

4. Increase your voluntary excess: premiums could be brought down by agreeing to pay more towards the cost of any repairs made if an accident occurs. The excesses could be recovered if the accident is not by your own fault. The general rule of thumb here is the higher the excess, the lower your premium. However, be sure not to allow the excess rise too high, especially if you have a car of low value. Ensure that you would be able to afford your voluntary excess. You would be required to stump up your excess if you need to make an insurance claim before your insurer will pay out.

5. Pay up front: many insurers charge interest on payments when your insurance cost is spread over a period of time. However, if you would like to spread the cost of your cover and still not get charged interest you should consider using a 0% purchase credit card to make payments. Ensure you pay your balance in full before the 0% period ends.

6. Consider the distance you drive: before applying for your car insurance, you first need to consider the distance you are able to cover in a year. The lesser the mileage, the greater your savings. Be aware that you have to be honest with the information you provide if not your claims would be jeopardized. This tip is beneficial especially if you have two cars, where one of the cars is likely to cover more miles in a year than the other. You would have a lower premium and might be able to get a cheaper rate if you don’t drive to work or for business with your car.

7. Consider getting a black box: a black box (telematics) is installed by your insurer to monitor your driving speed, how often you are on the road during “dangerous times”, and how good a driver you are. You get a premium reduction for good driving.

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About Editorial Team 50 Articles
Watch My Wallet has everything you need to know about money, written by real people who’ve been there. Inspired by the philosophy of Early Retirement Extreme (ERE), our goal is to make informed decisions about our finances in order to achieve financial independence.

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