Renewing or purchasing car insurance for the first time can be a rather daunting prospect, particularly for younger drivers.
Late last year we were told by the AA that car insurance premiums were falling, however it was revealed earlier this month that in fact millions of people lie to cut the cost of their policy – so they can’t have plummeted too low. You can read more about that here.
Now, providing false information may lower your expenses but it will also most probably invalidate your policy. There are a few above-board ways to reduce your premium however, and we’ve listed our top 10 below.
Shop around when renewing
Don’t take the easy option when that time of the year comes around to buy your insurance – insurers know that the simplest thing to do is renew your existing policy, and consequently will often exploit this making little effort to offer you a better deal. Spend a few minutes and find out if you can get a cheaper price elsewhere.
Increase your excess
The larger your excess, the lower your premium should be, so providing that you don’t make a claim it will prove to be a wise move increasing it.
Add someone to the policy
If you weren’t already aware you might be quite surprised to see how much you could save by adding a named driver, in the form of your partner or a parent for example. Providing that they are aged over 25 and have a clean driving record this will almost always lower the cost of your insurance.
Lay off modifications
You will always be asked by an insurer whether your car has any modifications, so think twice before adding a new set of alloy wheels or replacing the cassette player with a sub-woofer - you'll be charged more for your policy.
Is there room in your garage?
See if you can clear out your garage enough to make room for your vehicle, if there isn’t adequate space already. Make it known to your insurer that the car is kept there overnight and it should lower the cost of your premium.
Additional security
Are you considering purchasing an alarm or an immobiliser for your vehicle? If so make it known to your insurer as it could lower your premium, according to the Association of British Insurers.
Think carefully about your mileage
Don’t over-estimate the annual mileage you expect to cover when purchasing your policy. The fewer miles you drive the less your policy will cost.
Don’t pay for the same service twice
Insurers will almost always try to sell you additional services once you have paid for your policy, but don’t be tempted into agreeing before considering whether you already pay for the service elsewhere. For example, motor recovery or courtesy car cover.
Choose fully comprehensive cover, if you’re younger than 40
Earlier this summer we told you about new research from MoneySupermarket which outlined that fully comprehensive insurance was cheaper than third party for people under 40. Traditionally, motorists have expected healthy discounts for reduced cover, but it appears that is currently not the case. You can read more here.
Pay annually
A huge number of drivers don’t even consider paying annually for their insurance, simply because monthly payments are more affordable. If you can afford to however, it’s well worth the hit as insurers usually offer a significant discount.
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