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How to Slash Car Insurance Costs
- How to Slash Car Insurance Costs
Car insurance costs can make up a large amount of the price of running an automobile. However, it’s possible to cut the price with some wise moves.
- Choose your car carefully
The type of car you are driving will have a big impact on the cost of your car insurance. Insurance companies have a list of cars that are frequently involved in claims, while others are a little more expensive to repair or replace, forcing you to pay more. The insurance companies usually group models into categories going by the risk. You will find that sports models that have larger engines will be in the group of more expensive and higher insurance groups, while the smaller cars that have great safety features are in more affordable insurance categories. If you are in the process of buying a car, then you should choose a car in the lower groups because you will be saving on insurance costs.
- Keep it safe
You will be able to receive affordable premiums from the insurance company if you do your best to get your car out of harm’s way. Instead of leaving your car on the road where it can be easily reached to by thieves and vandals, keep it in a secured garage or driveway overnight. You can further lower your premiums by installing security features like trackers and alarms.
- Use it wisely
People who drive fewer miles can expect to pay lower premiums than those who drive more. This is because the more you drive, the higher the risks of getting into an accident. Many people usually estimate their mileage when getting a car insurance quote, ensure you provide an accurate prediction. You can get mileage from previous years on your MOT certificates, or you can also track your usage weekly and estimate the annual mileage. You should never lie on the mileage in order to get cheaper insurance – the insurer might refuse to pay out if your make claim and the mileage does not match up.
If you use the car to commute to and from work, you can expect to pay higher premiums – this is because you will most likely be driving during peak times, which increases the likelihood of making a claim. Depending on the job, the insurer will get to know if you are going to drive at night (let’s say you are a shift worker) when accidents are more likely to happen. If you opt for alternative forms of transportation to get to work, you can make savings on your car insurance.
- Pick the right cover
The insurance companies offered on Money Expert will offer three levels of car insurance; third party, third party, fire and theft, and comprehensive. The third-party insurance cover is the minimum you will need in order to drive legally in the UK. The policy will only cover the damage to other people’s cars and property. This means you cannot claim for damage to your own car. The third party, fire, and theft will cover other people’s cars and property and covers you for theft and fire damage. The comprehensive cover will also provide a cover for your own car if there is an accident or other claims. The levels of cover will come with different pricing as you would expect, but the surprising thing is that the third-party cover is not the cheapest option. Providers will provide you with great deals on the comprehensive cover. Third party cover will be much cheaper for older and lower value cars.
- Consider a black box
Black Box (also referred to as telematics or pay as you drive policies) is a good way to make savings. As part of the policy, you will be required to install a small device on your car or install an app on your phone that will monitor your driving. This will make it easier to trace your car if it gets stolen and also encourages safe driving. The insurer will be able to note your driving habits from the data they get and can make adjustments to your premium regularly basing it on the time and quality of your driving.
- Increase your excess
Insurers will base the premium you pay on how much they will need to pay if there is a claim. When you choose to pay a higher voluntary excess, you will be lowering the cost to the insurer because you are offering to pay for a larger part of the claim yourself. You will be able to pay lower premiums, but you need to remember that the amount will have to come out of your pocket in case you make a claim. Always choose an excess you can afford to pay, and that the excess costs are not higher than the value of your car.