Car insurance is an essential requirement as it protects you in unforeseen circumstances. In the UK, you can not drive a car without insurance. The cost of car insurance can be high. But since you need this insurance in every situation, you can not get rid of it. However, you can control different factors that affect car insurance. It will help you to lower car insurance premiums. One most serious mistake that most car owners make is the automatic renewal of the policy. When you do not look for new deals, your insurers can take advantage, and you have to pay high premiums. You can cut premiums to the lowest if you know what to do and when.
Here we are providing you with some ways to lower car insurance costs.
Get Quote Timely
You have to renew a car insurance policy after a specific time, but it is always better to do it timely. Different experts give different opinions about the best time to renew the policy, but there is no cast-iron answer. However, you should get the quote in good time. If you wait for the last minute, you will get the most expensive quote. We suggest you get a quote one week or ten days before your existing policy expires. Furthermore, we suggest you shop around and get quotes from different providers. It will help you to select a provider that meets your requirements and offers competitive rates.
Consider Seasonal Driving Habits
Take into account your insurance needs, whether they are the same throughout the year or you drive less in certain months of the year. You may have a vehicle that you drive only in summer, such as a convertible. If it is so, ask your insurance provider if you can make changes to your policy. For example, if you do not drive a car during winter, you can drop its collision and liability coverage and reduce the premium. If you are an occasional driver, you can purchase a short-term insurance policy to save money on car insurance. Many auto insurance providers are offering insurance for hours to a month. You can look into these options instead of getting long-term insurance.
If you can afford to pay the cost in one lump sum amount, you can save money by doing so. Monthly car insurance is always expensive, and you have to pay interest with monthly payments. However, if your budget is tight, you can spread the load in multiple payments. The amount of interest on your monthly payments varies from provider to provider. You can also look at other options, such as paying through your 0% credit card. When paying through a credit card, make sure to pay off your card balance before the end of the interest-free period. Some companies also offer discounts on annual payments, so if you can afford it, go for it to save money.
Get Comprehensive Cover
Purchasing a comprehensive car insurance policy is better and cheaper than the third-party fire and theft policy. Insurers charge more when you are buying third-party insurance. Moreover, the cost per accident is usually higher in third-party fire and theft policies. That is why experienced car owners always choose the comprehensive cover as it provides maximum coverage, and the cost is also relatively lower. Many insurance companies in the UK offer cheap full coverage car insurance.
Downsize Your Vehicle
It may look exciting to buy a large SUV but remember that insuring a big car with a big engine is more costly than the insurance of small-size vehicles. However, engine downsizing has been a trend for some years to get emissions down. It means that with technology, it is possible to drive big cars with small engines. Instead of purchasing a small car, you can purchase a car with smart technology and a downsized engine. In this way, you can protect the environment and save money on insurance simultaneously. It is better to find out the rates of insurance of a vehicle you are considering before purchasing it.
Improve Your Credit Rating
Car insurance providers always consider a driver’s record while calculating the cost of vehicle insurance. It is because a driver who has been involved in a lot of accidents could cost a lot of money to insurance companies. Another thing that insurance companies consider is the credit rating of the drivers. Companies take credit rating as the indicator of how many claims they will make. A person with a credit rating is responsible and is less likely to make claims. Regardless of whether it is true or not, you have to keep your credit rating high to save money on your car insurance policy.
Get Black Box Insurance
Black box insurance is also known as telematics insurance. It helps insurers to track the driving behaviour through a small device fitted in the vehicle’s dashboard. Premiums are based on how you drive. Thus, if you drive safely and according to rules, the black box policy can be beneficial for you in terms of cost. It can be a great option for young and new drivers as premiums depend on how responsible they are while driving. However, keep in mind that the black box policy has a mileage limit, and you may also be charged for switching the black box if you change cars frequently.
Take Driving Course
The UK government offers a pass plus driving course for new drivers, including driving tutoring for extra six hours. It helps drivers to improve their driving skills. Many insurance providers offer discounts to people who take this course. By taking additional training, drivers can reduce the risk of accidents. Make sure to ask your insurance provider about this discount before signing up for the course so that savings cover the cost of the course in insurance cost. Some councils offer discounts on this course, and you have to take this test within twelve months of passing the test.
Add An Extra Driver
Adding a second driver to your insurance policy can reduce your premiums. When you add a second driver, insurance providers see that risk is shared. For instance, when a new or young driver adds his dad as a second driver, the risk profile is improved that will ultimately reduce car insurance premiums. Some insurers allow you to add up to three drivers to your insurance policy. One thing to remember is that the main driver should be the person who mostly drives the car. If you add someone else as the main driver, your policy can be invalidated.
Increase your Deductibles
A deductible is an amount that you have to pay on a covered claim. You have to pay deductibles from your pocket when you make a claim for particular coverage. Typically, the lower deductibles you pay, the higher will be your insurance premium. You have an option to choose the amount of deductibles, so choose an amount that you afford to pay. Ask your provider how the amount of deductible can affect your insurance premium. Raising the deductible can be a sensible move to car insurance reduction.
Be Accurate With Your Mileage
Some drivers think that low mileage means a reduction in car insurance premiums. But it is not true. If your annual mileage is less than 3,000 miles, your insurer may think that you have less driving experience. No matter how competent you are at risk management while driving, low mileage gives the impression of less driving experience. Therefore, never push down your annual mileage. The best trick is to not over or underestimates your annual mileage. However, if you are a low mileage driver, it is better to get pay as you go or black box insurance.
Protect Your No Claim Bonus
When you drive without making a claim, it helps you build up your no-claim bonus. If you make no claim bonus up to eight years, it can reduce your insurance cost to 80%. You can get lower auto insurance rates if you protect and build you no claim bonus. Insurance providers offer discounts to those who are claim-free. It shows that such drivers are responsible and know how to manage risks. There is no way to speed up the process of making a claim bonus, but you can increase the chance of getting cheap insurance by protecting your no-claim bonus.
Increase Car Security
Better car security can not only help you to reduce the chance of theft but also help you to save money on car insurance. When your car is more secure, insurers will rate it as low. You can increase the security of your car by using immobilisers or trackers. You can also fit a dashcam to defeat criminals.
Now that you know many car insurance tips, you can use them to reduce your car insurance premium. Other than that, you can use some other ways such as lowering extras, driving in a safe manner, and avoiding modifying your car. Above all, shop around to find a provider offering competitive rates and the best services.