The car insurance market is competitive – there are plenty of insurers to choose from, but premiums are still climbing higher and higher.
Make sure you don’t pay over the odds – read our top tips to help you to keep a lid on the cost of your car insurance.
Top tips for cheaper car insurance
- The car insurance industry relies on customers being enticed with generous initial offers which don’t last forever, so the key message when looking for cheaper car insurance is shop around. Figures from the Association of British Insurers (ABI) show you can save 35% on your premium by comparing as few as five car insurance providers – so don’t automatically settle for your renewal premium until you have made sure it is competitive.
- Car insurers use a combination of factors to work out how much to charge. Those living in areas with high crime rates can expect to pay more, as can those in certain professions. This is why it is crucial to keep your policy details accurate and up-to-date, including as much information as you can about factors such as your occupation, where you park the car, your mileage, and whether or not you use the car to commute to work.
- Make savings by buying online, and by paying for your car insurance annually upfront, rather than in monthly instalments.
- Opt to pay a higher voluntary excess on any claim. Some companies will give you an excess of up to £800 which means your annual car insurance policy will be much cheaper. However, make sure that you can afford to pay the excess if you do have to make a claim.
- If you are a young driver, you may be able to get cheaper car insurance by taking the government-sponsored Pass-Plus training scheme for new motorists, or by signing up to a specialist “Pay-As-You-Drive” policy.
- If the car is owned and predominantly used by your parent, you can make savings by adding yourself to the policy. But watch out for a practice known as “fronting” where one person insures a car in their name and adds someone else as the “named driver” when the named driver is actually the main driver, not the occasional driver. If you get caught “fronting”, your insurer may refuse to pay out.
- Beware that adding drivers to your car insurance policy will increase your premium – and particularly if it is a young driver. If the extra drivers rarely use the car, it will probably work out cheaper to get a short-term policy instead. However, in some instances, having a named driver on your policy who is deemed as ‘low risk’ can help you cut your costs.
- Drive a car with a smaller engine as they are cheaper to insure. Also note that body modifications will add significantly to your costs, so avoid these if possible.
- Consider a mileage limit – or opt to only drive at certain hours of the day.
- Improve your car security by installing an alarm and an immobiliser. You can also keep car insurance premiums down by parking your car in a safe area – preferably in a garage or on a driveway.
- Every car insurance company gives you a 14-day cooling-off period in which you can cancel your policy. While this is usually free, some providers charge a small fee, but this can be really useful if you find a better cheaper deal once your policy has started.
- If you don’t have your own car yet, but might have one in the future, add yourself as a named driver on someone else’s policy. That way you can build up a virtual no-claims discount.
Compare car insurance providers with uSwitch today and find the best price for you.
*60% of car insurance customers could save up to £200 (Consumer Intelligence data, December 2011)