Most of us can’t imagine a life without a car and use it for all sorts of journeys both business and pleasure. A study by the RAC found that every time we drive a mile it costs us an average of 46p once all the costs are taken into account, meaning that while it might be convenient it’s certainly not the cheapest way to get about.
Manage your costs
There’s not much you can do about the cost of fuel which is estimated at an average £1,112 per year and unless you’re Gordon Brown, there’s very little you can do about the cost of Road Tax which will set you back an average of £126.
The one cost that you can have a say in is your car insurance and getting a cheap quote is pretty straight forward if you know what you’re doing.
You might think that it’s difficult to be covered too comprehensively but this might just be the case if you’ve opted for certain types of cover. A policy which covers anyone to drive your car will be far more expensive than one which lists named drivers. Particularly if those named drivers have a no claims history to prove they’re trustworthy drivers. So, if the circumstances around your car’s use have changed and there are fewer people using it then make sure you take up a policy which reflects that.
When you sign up for a policy it will state the amount of excess you will have to pay if you need to make an insurance claim. This will normally be a couple of hundred pounds but if you opt to pay out more in the event of claim you could reduce the cost of your insurance further. This might not work in your favour if your car is involved in an accident but if you lasted 5 years without a claim then it could be worth a bit of gamble.
Pay to play
You might love driving your car for leisure but as far as insurers are concerned the longer you’re on the roads the bigger the risk that you might have to make a claim. Prices will reflect this while all insurers ask on their application forms how many miles you drive. Think about changing the way you use your car if you want to drive down the insurance cost or alternatively sign up to a pay as you go insurance policy which will reward you for driving less by noting the number of miles you clock up.
Even if you’re happy with the cover you are receiving and the costs involved it could be well worth your time investigating the insurance options when your policy is due for review. Insurers are always coming out with new deals aimed at pulling in new business. If the prices look good then it will be worth reviewing the policy further.
Eye for a deal
There’s no getting around car insurance, it’s a legal requirement and if you get caught driving without it then you could find yourself in hot water. Even if the average policy will set you back over £400 there are still plenty of things that you can do in order to lower the cost. The key is to know how insurers put your quote together and to keep your eyes open for the best deals, many of which are likely to be found online.