8 savvy tips for reducing your car insurance costs

Ever wondered how you can reduce your car insurance costs? Then read on to discover our top tips to help you save money on your insurance. We’ve put together a handy guide to bring into focus the factors you need to consider when seeking savings on your car insurance. From the drivers included on your policy to how much mileage you cover and what additional benefits you want, a number of options are available to you:

A new BMW car

1) Shop around

When looking to save on your car insurance costs be sure to shop around and don’t just automatically renew with your existing provider. Look online, but remember that not all price comparison sites show all insurance providers. Pay close attention to detail to be certain that you’re comparing policies that are like-for-like and include the same benefits. Talk to an experienced insurance advisor, such as the team at Call Wiser to find the right insurance package for you. Given insurance providers often reserve their best deals for new customers rather than existing ones, it may well be that by switching your provider, you can make savings on your car insurance.

2) Payment options

Consider your payment options carefully. Sometimes the way you pay can affect the amount you pay overall. It may be that monthly payments include additional interest, so sometimes a one-off payment will work out cheaper than 12 monthly instalments paid by direct debit.

3) Increase your excess

Give thought to your excess too; it may be that by raising your excess you will reduce your insurance bill. However, be sure that you can afford that excess if you do need to make a claim or it really would be a false economy.

4) Consider your mileage

A car speedometer

Look at the mileage cap you’ve had on your policy in recent years and consider whether you could reduce it. If you can, this could help keep your insurance bill down. It might be that yours is a multi-car household and that there are one or more cars that are used less than the others. It might be that your low mileage is the key to reducing your costs.

5) Don’t add extras

Think carefully about any added extras that are included in your car insurance, they could be increasing your bill and may not be benefiting you. Look back and consider if you’ve ever used any of the extras for which you’ve paid. Do you need personal accident cover, windscreen cover, lost key cover, legal protection, a courtesy car or cover for driving abroad? It might be that the peace of mind these additions afford you is worth the additional cost, but going for a more pared down approach might save you money in the long term.

6) Don’t make assumptions

When looking at car insurance policies you might assume that third party cover is the cheaper option, but this is not always the case. As the team at Money Saving Expert explain, the very fact that you choose comprehensive cover over third party, indicates that you are a responsible, less risky driver.

7) Don’t assume less is less

Calculating insurance costs

Amazingly, adding another driver to your insurance policy may help to cut your insurance costs rather than increase them. As the insurance industry is based on risk adding a driver to your policy who has a good record and is responsible, may help to lower your premiums. Just don’t add someone as the main driver who isn’t – your insurance would be invalid and you could be convicted of fraud.

8) Security

Car insurance like all other types of insurance is based on risk, so increase the safety and security of your car and you could make savings on your insurance. If at all possible, park your car in a garage or off the street, and this alone could help reduce your premiums. So clear out your garage now and don’t merely use it as a dumping ground for all those things you don’t know what to do with – use your garage for its original purpose and save on your insurance.

Also, there are technologies you could embrace to help cut your costs including telematics or ‘black box’ systems and dashboard cameras. If you have security systems approved by your insurer you could make savings, as these systems monitor your usage of your car and could help to prove that you’re not to blame for an accident. Additional security you might want to consider includes professionally installed car alarms and trackers, helping you to relocate your car should it ever be stolen.

So as you can see, there is a range of approaches you can take to reducing your car insurance costs. We hope you’ve found this checklist helpful for when you next renew your policy. Drive forward with confidence and make savings on your car insurance policy in the future.

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