If you want cheaper car insurance, then it can pay to shop around. While the cost of accident repairs and personal injury claims can push car insurance premiums up, competition for customers keeps price rises in check. But do beware – some insurers may trim policy benefits to produce a 'cheap' premium.
However, there are things that you can do which could help reduce the cost of your current car insurance premium.
Check the policy benefits – not just the price
Does the policy give you benefits that could come in handy? Useful benefits could include:
- A courtesy car while yours is being repaired.
- Cover while driving in Europe.
- Help with the recovery of uninsured losses (which could include your out-of-pocket expenses after an accident).
Once you've considered the policy benefits, always check the compulsory excesses before accepting a quote.
Learn more about the phrases and jargon used in car insurance.
Think about your driving
If you want to reduce your next car insurance premium, then the way you drive can help.
Stay within the speed limit – a speeding ticket is likely to increase your premium. And if you reduce the annual mileage on your vehicle, perhaps by cutting back on journeys or using other forms of transport, you're likely to cut your premium as well.
A secure car can reduce insurance costs
If possible, don't park your car on the street at night. Keeping it on a drive is preferable, but use the garage if you have one, and lock it at night – the extra security could bring a discount on your premium.
You can improve the security of your vehicle even more. Insurance companies can tell you which tracking devices and immobilisers are likely to reduce your premium.
Car insurance groups
Each car has a group rating score, which identifies the risk to insurers for its price or value, the cost of repairs, plus the complexity of the vehicle's design and its performance. Usually, if you buy a car with a low group rating score it will be cheaper to insure.
Learn more about car insurance groups.
Tips for young drivers
If you're a young or newly qualified driver, it's worth considering the Driving Standards Agency Pass Plus course. It helps you improve your driving experience in key areas like driving at night and on motorways, and could get you a discount on your car insurance.
Find out more about cheap car insurance for young drivers.
Tips for older drivers
Are you a parent with teenage children who are learning to drive? If you get your son or daughter insured as an additional driver of your car and they have an accident, your no claims discount will be affected. So it's worth encouraging them to buy their own car and insure it themselves. This will help them gain their own no claims discount and cheaper car insurance in the long run.
And when you do retire and end the daily commute, remember to tell your insurer about the reduction in your annual mileage – it could reduce your premium.
Consider voluntary excess for cover
Finally, consider how much you'd be prepared to pay out if you have to make a claim. If you can afford to pay another £100 or £200 as a voluntary excess, your annual premium costs may come down.