How to cut your car insurance premium

September 5, 2014 | By | In Advice
How to cut your car insurance premium

Car insurance is one of the biggest expenses that drivers have to stomach every year.

While premiums may have dropped in recent years, research shows that a whopping 46 per cent of motorists don’t shop around to get the best price for their insurance come renewal time and simply let their existing policy autorenew, assuming the company which offered the best price last year will still offer the best price this year. Does this sound like you?

If so, you could be paying hundreds of pounds more than you need to. The research carried out by Go Compare found that 8.2 million drivers in the UK are being charged on average £222.66 more than they should be. We’ve rounded up a number of simple techniques you can try, to get the best price for your insurance.

I for one used a number of these when renewing my own insurance this week and saved myself £152.89 by not letting my current insurer renew my policy. Many drivers could save even more than that. Find out how below.

Don’t let your insurance autorenew

Don’t assume that the insurer that was cheapest for you last year will be the best value this year. You may even get a much lower quote by searching for a new quote from them online for exactly the same policy.

Shop around on several comparison sites

Get quotes with a number of comparison sites to see the best price that you can get from a number of insurers. You may get quite different prices from the same insurers by using different comparison sites, so it’s worth taking the time to do a few searches.

Haggle with your current insurer to see if they will price match

Just because your insurer has quoted you a high price, doesn’t mean that you can’t haggle with them for a lower price. If they want your custom they’ll drop their prices or potentially even beat other quotes.

When I told my insurer that I’d found a cheaper price they instantly slashed £64 from the premium – a discount of just under 10 per cent. Their price was still higher than another insurer so I told them that if they didn’t match the other price I would leave them. They say they couldn’t match the quote, so I went with the other insurer – don’t be afraid to do the same.

Don’t overestimate your mileage

The less you drive your car, the lower your premium should be. So if you only cover 5,000 miles a year, get a price for a 5,000 mile policy. Policies may not double in price if you double the mileage, but you can save money here by trying to accurately predict your mileage.

Add a responsible named driver

Young drivers can be hit particularly hard with high insurance costs. However, adding a driver with a clean driving record and plenty of experience can reduce the overall premium dramatically.

Consider the best excess for your needs

The higher the excess – the amount you pay in the event of making a claim on your insurance – the lower your premium is. Think about the best balance between an affordable excess and reasonable policy cost.

Think about how to best phrase your job title

Something as simple as your job title can also affect how much you pay. For instance you may get a lower premium by describing your role as a “researcher” than a “writer”. Don’t misrepresent your role, but try out several different titles to see which gives you the lowest price.

Follow these simple tactics and you can make sure you’re not one of the millions who have to stump up an extra £222.66 each year. Maybe if more drivers were keener to shop around insurers might be more hesitant to lure motorists in with competitive prices and then send out inflated autorenew premiums in subsequent years.

Picture: wirojsid

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