There are a few key ways in which you can save money on your car insurance. Some are quick, easy and straight forward and others may require a little more thought and intervention, but in theory, you can save a reasonable amount of money on your car insurance.
Younger drivers or new drivers are always going to be the most difficult to gain the best savings but this doesn’t mean it’s impossible. The cost of insurance for new drivers is typically higher than for more experienced drivers. This is because they are statistically more likely to have an accident, meaning it’s a riskier investment for the insurer. But whether you’re a new driver or an experienced driver there are ways to make savings on your car insurance.
In this post we will cover the following top ways to get the best car insurance deals:
- Compare rates online to find the best deal
- Ask friends and family for recommendations
- Bundle your policies for additional discounts
- Pay your premium in full
- Avoid filing small claims
- Park in sensible locations
- Limit your mileage
- Increase voluntary excess
- Build up your no-claims bonus
- Avoid add-ons that you don’t need
- Select your vehicle wisely
- Avoid modifications
- When to renew your policy
- Consider an advanced driving course
- Beware of admin fees
- Consider your insurance type
Compare rates online to find the best deal
Anyone who’s shopped for new car insurance knows that the process can be lengthy and daunting. With so many options to choose from, it can be difficult to know where to start.
There are dozens of companies offering hundreds of different plans, and it can be hard to know which one is right for you. The best way to find the best deal on auto insurance is to compare rates online. By entering your information into a rate comparison website, you can see all the different options side-by-side and decide which one is right for you.
In addition, by choosing to buy cars that are cheapest to insure, you’re setting yourself up for success. Driving a car that is cheaper to insure is an automatic way to save money on your car insurance rates.
Ask your friends, family, and colleagues for recommendations for cheap car insurance
Insurance is one of those necessary evils that we all have to deal with. No one likes paying for it, but it's a crucial part of protecting ourselves financially in case of an accident. Regarding car insurance, there are many options out there, and it can be tough to know which one is right for you.
That's why it's always a good idea to ask around for recommendations from people you trust. Your friends, family, and colleagues are all likely to have experience with different insurance companies, and they can give you some insight into which ones offer the best coverage at the most affordable prices.
The same goes for social groups and forums. Asking in networking groups like those on Facebook can help give you an idea of others' personal experiences with an insurer, especially if you have a unique or old vehicle.
Bundle your car insurance with other policies for extra savings
Car insurance is one of those necessary expenses that can put a dent in your budget. But there are ways to save on your premium, including by bundling your car insurance with other policies. Many insurers offer discounts for customers who purchase multiple policies, so it pays to combine your household members into one policy.
If you have more than one vehicle, you may be able to get a discount by insuring them all with the same company. And if you have homeowners' or renters' insurance, you may be able to get a discount by bundling that policy with your car insurance.
Pay your premium in full to avoid monthly fees
Almost everyone is familiar with the concept of insurance. Whether it’s health insurance, car insurance, or life insurance, we all have some experience with paying premiums in exchange for protection in case of an unforeseen event.
However, what many people don’t realize is that most insurance policies come with a monthly fee if you don’t pay your premium in full upfront. This can add up over time, and it’s important to be aware of this cost before you purchase a policy.
Don't file small claims - they could lead to rate hikes
As a general rule, it's always best to avoid filing small claims. Not only is there a risk that your claim will be denied, but even if it is successful, the insurance company could respond by raising your rates. In most cases, it's simply not worth the hassle or the expense.
There are, of course, exceptions to this rule. If you have suffered significant damages and are confident that your claim will be successful, it may be worth pursuing. However, even in these cases, it's important to weigh the risks and benefits carefully before moving forward.
In the end, filing small claims is generally more trouble than it's worth. Unless you are confident that your claim will be successful and that the benefits will outweigh the costs, it's best to simply let it go.
Park your car in a safe location to reduce the risk of theft or vandalism
One of the most important things you can do to protect your car is to park it in a safe location. If possible, choose a spot that is well-lit and visible to passersby. This will help deter thieves and vandals, who are more likely to target cars that are out of the way or hidden in the dark.
When parking at home, always park on a driveway or in a garage where possible. Adding security devices such as cameras around your house will also provide peace of mind. Whilst it might not stop a determined thief it will act as a deterrent for most.
Limit your mileage
The average annual mileage for social and commuting drivers will be around 7,000 miles. But insurers like it when you do less than this. Simply because the less you drive the less chance you have of having a car accident.
If you are able to reduce your mileage this can have a positive effect on your insurance costs. Try walking more often or digging the bike out of the garage and pumping up the tires. Not only are you going to reduce your insurance cost but you’ll get fitter too.
Increase your voluntary excess
By increasing your voluntary excess you will take that amount (or a proportion) out of the annual fee, but be careful, as if you end up having to repair or replace your car this will need to be paid, so make sure you can afford it.
Build up your no-claims bonus
Good, sensible driving, year after year pays off. Get on your own insurance policy as early as possible, drive sensibly and you will be rewarded. With just 1 year of no-claims, you can expect a saving of up to 30% on your car insurance. 2 years will give you about 40%, 3 years 50% and 4 years 60%. After this, the increments are a little smaller but you could save up to 75% on your insurance with 9 or more years of no-claims. These are massive savings worth holding onto. So take care out there people.
Avoid add-ons that you don’t need
Car insurance policies normally include some of these or are available as add-ons. If they are an add-on service you may wish to leave them off your policy. But be careful as some are important and will cover you for important life-changing situations. Personal accident cover is for this exact purpose. It will cover you if you suffer a serious injury or die in an accident. So, you will likely want to leave this one there or add it on.
Other add-ons might include windscreen cover, courtesy car, legal assistance and protected no-claims cover. Each of these can be important or unimportant depending on your personal situation. For example, you might not need a courtesy car as you don’t use your car for commuting and can manage with a partner's vehicle.
Select your vehicle wisely
The type of vehicle you choose to buy will make a big difference to the cost of your insurance. Selecting a safe car with a small engine that is less desirable to thieves will always be cheaper to insure than a heavily modified sports car. If you’re looking to get the best possible price on your car insurance and save money by choosing a car vs public transport, be sure to select a sensible car. If you want to be really frugal, then consider a scooter instead of a car!
Insurance groups range from 1, which is the lowest and cheapest type to insure and go all the way up to 50. Cars in the 50 group will include your supercars and highly desirable sports vehicles. If you’re looking to save money on car insurance make sure you select a sensible car that sits in the 1-5 group.
Installing expensive audio equipment, changing the styling or upgrading an engine of a vehicle all need to be listed on your car insurance. Failure to list any of these modifications could invalidate your insurance. Modifications will tend to push your premium up so try and avoid them to get the best deal.
When to renew your policy
Surprisingly this can make a difference when renewing or buying your car insurance. You can request quotes for renewing your car insurance up to 29 days before it is due. The best bit is, you can lock that price in. If you agree to purchase your car insurance 29 days early you tend to get a better price than if you were to buy a policy 2 days before your renewal. This might seem odd but it has been proven to work. Get in early for the best savings.
Advanced driving course
If you’re new to driving or simply want to improve your driving skills then an advanced course is a great option. Whilst it isn’t guaranteed to reduce your premium, many insurers will take this into consideration.
Beware of admin fees
Some insurers will charge you an admin fee to make changes to your policy. Requesting to change your vehicle or address could land you a £50 fee. Selecting an insurer that doesn’t charge for such changes will be a better option. Even if you end up paying £5-£10 more upfront you could end up saving in the long run.
Consider your insurance type
If you own a cheap car that wouldn’t cost much to replace then you might want to consider 3rd party, fire and theft cover only. A comprehensive cover might not be necessary for this vehicle and could save you money on the policy. Whilst it won’t always be cheaper it’s best to compare the differences to see if you can save.