Top Tips to Lower Your Car Insurance Premium
You’ve chosen your used car from Parkland Motors, you’ve paid your deposit and now you just need to sort out the dreaded part - arranging your vehicle insurance and road tax.
If you’re a fairly young driver or have chosen a car with a high car insurance group, then, unfortunately, you may expect to see a steep cost in your car insurance. Some of the other factors that can affect the cost of your car insurance are your licence history, your location or your job occupation. The more high risk your occupation, and the more crime in your local postcode, the higher your insurance will be.
With that being said, this doesn’t necessarily mean you have to fork out top whack for your vehicle insurance as there are some savvy ways to lower your insurance premium. This guide explains some of our top tips on how to make car insurance cheaper.
Compare Insurance Quotes
If you’re loyal to a particular insurance provider, then you may have better luck looking elsewhere. Insurance comparison sites, such as Compare The Market, Confused.com, Go Compare and Money Super Market, offer fantastic deals at great prices with some offering additional incentives if you purchase your insurance through them.
With Confused.com, you can choose a free gift with any car or home insurance purchase, which includes £20 to spend at Halfords, Domino’s, Lastminute.com or ShellGO+.
While comparison sites aim to find you a great deal, we do find that prices do differ between each comparison website, so if you are looking to save some pennies, you may want to visit several car insurance comparison websites.
When carrying out insurance quotes, you will be asked to detail your expected annual mileage, which can have a massive influence on your insurance premium. In order to calculate your annual mileage, we do recommend reading our guide on How to Predict Your Annual Mileage.
Call Insurance Providers
As well as carrying out insurance quotes, we also recommend directly calling up insurance providers to see if they can give you a better deal. Car insurance quotes are automated through comparison websites based on your exact circumstances, meaning that you may not be getting the cheapest deal.
Calling up insurance providers may give you a better deal, and if a family member is with the same provider, they may be willing to give you a real bargain. Also, if you are looking to take out home insurance at the same time as your car insurance, this can also help to get you a better deal.
Arrange in Advance
One of the most crucial ways to significantly reduce your insurance premium is to arrange your car insurance in advance. In some cases, we have seen new drivers saving several hundreds of pounds by arranging their car insurance a week or two in advance with a delayed commence date.
Car insurance providers generally charge a higher premium if they know a driver needs their insurance to commence immediately, as they are aware that the driver is willing to pay more. And, according to Money Saving Expert, this can save you up to 40%, with 21 days the optimum time to get the cheapest deal. In fact, we have also heard that insurance quotes are generally cheaper in the very early hours of the morning, but we’ll let you test that!
However, we only advise this if you are in the position to do this, for example, if you are renewing your insurance in advance or are expecting to collect a new car in the next few days/weeks.
Do you usually pay your car insurance monthly? Well, you may want to switch to paying annually instead. Paying your car insurance monthly is great if you aren’t able to pay a lump sum at once.
However, car insurance paid monthly generally has interest added on top which you’ll need to pay with each monthly instalment throughout the year. If you are in the position to pay annually - go for it!
Invest in a Dash Cam
Dashcams can prove useful when it comes to making an insurance claim or witnessing an accident and are conveniently placed to observe the whole of the road ahead.
As well as covering you in the event of an accident, having a dash cam can also reduce your insurance premium significantly. When applying for an insurance policy or browsing a comparison website, you’ll just need to select the option to declare you have a dashcam.
Consider Telematics Car Insurance
When carrying out insurance quotes, you’ll notice that the cheapest deals typically include having a black box fitted into your car to track your driving habits. We understand that most drivers would usually run a mile at the thought of a telematics car insurance, however, they aren’t all bad.
While some will penalise you for driving short distances or for driving outside of your dreaded curfew, other telematics car insurance policies are more relaxed and will only track your speeding habits to make sure you stick within speed limits. If you are a new driver, having a black box can be a fantastic way to reduce your premium and set good habits early on.
If you have any uncertainty of whether a black box is the right decision for you, then we do recommend doing your research by looking at reviews to see how insurance providers use telematics. Some telematics insurance providers will offer rewards and discounts for safe driving.
Moving House? Carry Out Insurance Quotes First
As insurance premiums are largely based on the location of your home, if you do happen to be moving house, you may want to consider carrying out insurance quotes to see what the area is like and to see how much you should expect to pay. Plus, this can be a great way to see what the area is really like.
In some cases, we have seen insurance premiums double in price due to location, which, if you’re a young or new driver, can be a massive cost to factor in.
Protect Your No-Claims Discount
In the unfortunate case that you do end up in an accident, your insurance premium will significantly increase the following year and you’ll lose the no-claims discount that you’ve racked up following each year of safe driving. If this does happen, then you can see your premium increase by around 37% on average, if you decide to make a claim.
If you do have several years of safe driving under your belt, we do recommend paying a fee when setting up your insurance to protect your no-claims discount (NCD). Meanwhile, drivers with five years protected NCD will only see a 3% increase in their annual premium.
Quality Used Cars With Parkland Motors
Do you have any other tips on how to get cheap car insurance? We would love to hear them! And if you are a first-time driver, we recommend having a read at our car guide for first-time drivers.
Looking for your next used car? Well, you’ve come to the perfect place. We stock an impressive range of used cars to suit all styles, lifestyles and budgets. If you’re still not sure about which makes suits you, then you’ll be pleased to know that we have over 300 used cars in stock at any time, and full dealership facilities.
We are more than happy to talk you through your first car requirements and help you find the best car to suit you. Contact us today for more information on our cars and services.