How can I save money on my car insurance premium?
Saving money on your car insurance premium is the aim of the game for anyone searching for insurance.
Nobody enjoys looking for insurance but everyone agrees it’s worthwhile if there is money to be saved.
That’s why mustard.co.uk has pulled together a list of top tips to help you save money on your car insurance premium:
Compare, compare, compare
In the property game it’s all about location, location, location and in the less snappily titled ‘cheapest-insurance-price-hunting-game’, comparison is the buzzword.
Whether you’re buying a new laptop, a new pair of trainers or a new car, you want to make sure you’re getting good value for money. That usually means looking at lots of different retailers to see whose price is lower.
Fortunately, comparison websites like mustard.co.uk allow you to compare insurance prices from lots of different brokers in one place, showing you the cheapest deals available.
When searching for motor insurance it’s important to be accurate.
There are two main reasons for this. First if you try to make a claim and you have been economical with the truth on your policy, you could be waved away without recouping any of the money.
Second, accuracy could save you money. This applies to mileage and the length of your insurance policy, two factors which influence how much you pay for insurance.
If you drive for 5,000 miles a year but told your insurer you will drive 10,000 miles, you’ll pay for 5,000 miles that you don’t actually use. That’s a waste of money.
As a result, you should be as accurate as possible so that you are not paying for miles you don’t drive. If you are going to be driving less than 5,000 miles per year, you could benefit from low mileage car insurance.
It’s also important to properly decide how often you drive. If you only drive very rarely, it might make sense to go for a short-term or temporary policy rather than a 12-month Comprehensive policy when you are paying all year round.
While it’s important to be accurate, it’s even more important to be honest on your insurance policy – bending the truth to save money is a big no-no.
No Claims Bonus
A long No Claims Bonus (NCB) is one of the most effective ways of lowering your car insurance premium.
Insurers look kindly on anyone with a clean insurance history and that’s generally why older drivers have lower insurance costs, as they have had the chance to gather NCB.
It’s not good news for learner drivers on their first ever insurance policy however the silver lining is that your insurance should get cheaper with one year without a claim under your belt.
Some insurers offer discounts to motorists with advanced driving qualifications.
For car drivers, this could be something like the Pass Plus scheme.
The insurers who give discounts to motorists with extra training usually have a list of training schemes that they will accept.
Parking your car on a driveway or in a garage is a solid way of reducing your insurance premium however it’s not an option for lots of motorists.
But if there is an option to park your car off the road then take it, as it can reduce your insurance costs.
It’s another option car drivers should weigh up when looking for their next insurance quote.
Some insurers have suggested security devices that can help to reduce your insurance premium.
For cars these could be recommended immobilisers and tracking systems.
Type of cover and excess
As well as comparing lots of different insurers it’s worth comparing all levels of insurance cover.
There are two forms of excess when it comes to motor insurance, compulsory and voluntary. While there’s no avoiding or negotiating compulsory excess, you can change the voluntary. The higher you agree to pay the lower your insurance premium will be.
Are you paying for business cover when you don’t have to? Have you included commuting even though you always cycle? If so, you could save money by streamlining your policy to cover just what you need.
Again, the important thing is to be accurate and honest. If you need to make a claim and you’re not covered it will be expensive.
If your insurance premium is too high then it may be time to think about a less powerful car.
On top of that there are a couple of other things that you could change if you were really dedicated to slashing your car insurance costs:
- Move to a statistically safer postcode.
- Get a garage.
- Change jobs to a statistically safe one.
- Do not add named drivers.
As much as everyone likes to save money it is vital that you are truthful when you are searching for insurance.
Bending the truth might save you some money but if your insurer catches you out they can refuse to pay out on any claims you make as well as cancel the policy and charge the correct premium in one lump sum.
Remember you can compare insurance quotes with over 60 providers with mustard.co.uk either online or over the phone.