How Can I Reduce My Car Insurance Costs?

With the overall increase in the cost of living, many people are now on the lookout for a way to decrease their car insurance costs. There are multiple different ways you can look to achieve a saving on your policy premium.

1. Shop around – Many people are quick to accept the auto-renewal price quoted by their existing insurance provider. This ignores potential savings that could be found by obtaining quotes from multiple insurance companies.
   
   You should also consider the different policy terms and how this could alter your costs. For example, where your vehicle is stored overnight might reduce your premium. It would be worth testing these different options whilst completing an online quote.
   
   Please note that the terms you select must be true and accurate, and providing false information could invalidate any claim.
   
   
2. Lower your annual mileage – Your estimated annual mileage also plays a part in determining your insurance premium costs. You should consider whether you are actually driving the number of miles you are paying for, as lowering the mileage could lower your costs.
   
   The best way to establish your average annual mileage would be to look at previous MOT certificates, which should display both the mileage and test date. Additionally, if your vehicle has a warranty or service booklet, the mileage should be logged at each service.
   
   
3. Changing your voluntary excess – Voluntary excess is an amount specified by you which you agree to pay in the event of making an insurance claim. This is added to the amount of compulsory excess selected by the insurance company, and the total amount becomes payable by you.
   
   Usually, the higher the excess, the lower the premium cost. However, the disadvantage to this is that you will be liable to pay the higher excess amount in the event of a claim. You should only select an excess that you could afford to pay if the worst should happen.
   
   
4. Vehicle make and model – The car you drive will impact your car insurance costs. Vehicles are allocated to an insurance group from 1 (cheapest) to 50 (most expensive). Choosing a vehicle with a lower insurance group classification is likely to result in lower premium costs.
   
   
5. Maintaining a clean driving record – Motoring convictions may increase your insurance premium costs. This is because your insurance company views you as posing an increased risk to them, which results in higher premiums.
   
   
6. Adding a named driver – Adding an experienced named driver to your policy may reduce your insurance premium costs. However, an alternative individual cannot be added as the main driver in place of yourself, as this may invalidate your insurance.

At CARS, we always recommend the use of a local broker to find a policy and provider suited to your individual circumstances and requirements. Visit our blogs ‘How do I choose the right insurance company for me?’ and ‘How are car insurance premiums calculated?’ for further information.