Top Ten Tips for Saving on your Motor Insurance
With the new EU ruling on Gender Neutral Insurance Pricing coming into force on 21st December 2012 (see post dated 4th October for details), one of the areas which will be impacted is insurance costs for women who historically have enjoyed lower premiums. See below for money saving tips on car insurance which will benefit everyone.
1. Shop around
It’s worth comparing motor insurance costs as premiums do vary between companies. Make use of brokers or comparison websites sites to get quotes. Don’t just compare on price however, make sure that the policy meets your needs and always check documentation when received.
2. Make your vehicle secure
Do you have an approved alarm or immobiliser fitted? Insurers’ will often offer discounts when these are fitted – an insurer can advise on suitable security devices. Having your car garaged overnight or parked on a drive may also reduce the cost as well.
3. Pay a higher voluntary excess
Consider whether you can afford to increase the voluntary excess on your insurance premium, this will cut your premium.
4. Do you need business cover on your insurance?
Using your vehicle in connection with any business pushes up the cost so, if you can, limit use to social, domestic and pleasure purposes.
5. Consider taking the PassPlus course
Younger drivers should consider taking an advanced driving course as some insurers may offer lower premiums. Check with individual companies first though as this does not apply to all.
6. Pay the premium in one go
If you can afford to, pay the insurance premium upfront in one. You will usually be charged more if you pay by instalments.
7. Choose a lower powered car
If you change your vehicle consider the size of the engine. Car, engine size and its value will all affect premiums.
8. Build up a no claims discount
Insurance premiums are affected considerably by no-claims history. By driving carefully and limiting the likelihood of an accident you will appear a low risk driver and thus build up your no claims discount. Speeding convictions for example will increase your
premium. (Some Insurers offer cover to ‘protect’ your no-claims by charging an additional premium.)
9. Reduce your mileage
The less you drive, the cheaper your insurance will be. When taking out cover inform your Insurers’ of your approximate annual mileage – particularly if this will be low. Where possible try and reduce your mileage.
10. Get a ‘new’ quote from your existing insurer
Often applying to your existing insurer as a new customer produces a cheaper price than its renewal quote. Insurers put out more competitive prices to attract new customers so simply start again and you could be better off.
