For many of us, car insurance is a major expenditure and one that we would gladly reduce if we can. While many people are aware of the benefits of shopping around for insurance quotes, you may not have considered some of the other measures that can be taken to reduce your insurance premium.
While it is not possible to change some things about your insurance policy, such as your age, your driving history and where you live, there are certain things that for many insurance companies will affect the amount you pay. Here are some top tips for shaving pounds of the price of your next insurance quote.
1. Security-Conscious Parking
Insurance premiums are worked out on a risk basis and the cost of theft and damage to a vehicle is a major factor in setting the price of your policy. To reduce this risk, you should try to park your vehicle in safe places such as a driveway or, even better, a locked garage. This can reduce the cost of your next annual premium by between 3 7%, depending on the company that providing a quote.
3. Careful Driving
It goes without saying that a clean license is the Holy Grail in terms of insurance costs. If you have three points on your license, this will generally bump up the cost by around 5%, but get two or more offences in your driving history and you’ll be looking at an additional 20% or worse on the cost of your cover. Driving while on a mobile is considered more serious than speeding and could double your insurance cost.
3. Add a Low-Risk Driver
If you are in a higher insurance risk category, either because of your age, lack of no-claims bonus or previous driving offences, then adding a named driver with a good driving record can be very beneficial. Even if you don’t think they will use your car very much, some insurers view this as a reduction in the risk and therefore reduce the premium accordingly.
4. Choose Your Vehicle Carefully
A small, low-value, low-powered car will cost substantially less to insure than a high-performance sports car, so pick the right car for your current situation. If you are a young driver or haven’t built up a no-claims bonus yet, sticking with a low insurance group vehicle for two or three years can drastically reduce the amount you will need to pay to insure the car you really want to drive. Choose a car with a factory-fitted alarm or immobiliser or get a Thatcham-approved device fitted to help reduce your premium further.
5. Don’t Drive As Much
It might sound obvious but the less you use your car, the less you will pay in insurance. When you are deciding how to commute to work, remember to add in the additional insurance costs as well as the cost of the petrol, as this could be a major factor in deciding to take the train instead.
To get the best prices, play around with the options you have using a car insurance comparison site like moneysupermarket.com to see what differences these changes make to your premium. Whatever you do, be sure to inform your insurer of any change in circumstances immediately and do not be tempted to lie about your situation. Having your insurance cancelled because you lied is something that will stay with you for life and will make it very expensive and difficult to get insured again.