Top Tips for Saving Money
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Last updated: 23/09/2021 | Estimated Reading Time: 3 minutes
Insuring your car is an absolute necessity, and unfortunately for many, it can seem a rather expensive necessity.
So if you want to get out on the road, but don’t want to pay through the nose to do so, read this helpful guide.
First things first, when it comes to choosing your car, you should pay attention to which of the 50 insurance groups it falls into as this will have a strong bearing on the cost of your policy.
As a general rule, cars with smaller engines and more security features will be in one of the lower categories and will therefore cost less to insure.
Second, you should limit the amount you drive in your car if you’re really set on severing your premiums, since (rather straightforwardly) the more you drive, the higher the probability there is of you being involved in an accident.
Of course, this is not always possible; sometimes high mileage is unavoidable. If this is the case, there’s no need to worry, there are plenty of other ways to cut costs on your motor insurance.
The price you pay for your insurance will of course be affected by the level of cover you want, but also by the kind of policy you’re after, for example choosing a policy with a black box is likely to reduce the cost of your premiums.
There are three levels of cover available: third party only, third party, fire and theft, and fully comprehensive. All scaling up in terms of cover and price (generally speaking). While less cover tends to be cheaper, it is always worth working out where your priorities lie, as by spending a little bit more you will often find that you actually get a lot more for your money, relatively speaking.
Regardless of the level of cover you’re after, you can still affect the price you pay by choosing to install a black box, or by becoming a named driver on someone else’s policy.
You pay for insuring your car in two ways: regular premiums, and voluntary excess. The excess is what you pay yourself in the event of a claim, and if you opt to pay a higher excess then, generally speaking, your premiums will go down to the point where your policy ends up cheaper over all.
Choosing to pay for your premiums monthly by direct debit can make life easier, breaking the cost up into manageable chunks. However, while this is possibly the most popular means of paying for insurance, many people are actually spending more than they could due to the interest insurers tend to charge people paying monthly.
If you can afford to pay off your premiums annually in one go, you’ll find the savings more than adequate.
Taking our a telematics policy is a commonly followed way to reduce insurance premiums.
Doing this, your insurer will give you something called a black box, which is a small device installed on your car that tells your insurer how you drive, whether you speed, your mileage, etc.
If this interests you, be sure to read our guide on black box and telematics insurance.
If you are unsure about installing a black box, another less intrusive device you could install is a dash cam. These are relatively inexpensive, and usually result in lower insurance premiums.
No matter what kind of policy you need, or what car you want to insure, or how you want to pay for you premiums, you can always save money by shopping around and comparing car insurance quotes online.
Use our comparison service to find the cheapest and best quotes available and you can be certain that you will save money on your policy.