Car Insurance - buyer's guide
Top tips for cheaper car insurance
Car insurance is one of the most expensive aspects of motoring, but as driving without it is illegal, it’s not something you can do without. Fortunately, there’s plenty you can do to help cut your car insurance costs, before comparing policies and finding the right deal for you.
- Insurers rarely reward loyalty, so don’t just let your car insurance auto-renew without shopping around for a better deal first.
- You don’t need to wait until renewal time to compare quotes – you’re allowed to cancel early and may be entitled to a pro-rata refund of your premiums. You’ll need to factor in any cancellation fees your current provider charges and remember you won’t earn a no-claims bonus for that year.
- Many insurers offer a discount for keeping your car safe – this could be for parking overnight in the garage or on the drive, or beefing up security with an alarm or tracker.
- Think about whether you could reduce your mileage, perhaps by car-sharing or investing in a bike for shorter journeys. Never lie to your insurer about your mileage, though, as this could invalidate your insurance.
- Consider raising your excess. This may lower your premiums, but make sure you can still afford to pay the excess in the event of an accident.
- Think about downsizing. Modest cars with smaller engines tend to be cheaper to insure than powerful vehicles with performance modifications like an uprated exhaust. Opting for a smaller car with a less racy image could considerably cut costs.
- Adding a parent, partner or other responsible person with a clean driving record as a second driver can sometimes reduce premiums. Never lie about who the main driver is though, as this is fraud.
- Change the way you pay. Many insurers charge more for paying monthly, or for using a credit card, so it’s often cheaper to pay for the policy up front and use your debit card. Some insurers give web discounts so you might find a better deal by buying online rather than over the phone.
- Above all, compare quotes before you buy to make sure you find the right deal at the best possible price. Using a price comparison site means you can get lots of quotes in just a few minutes.
*Based on independent research by Consumer Intelligence during 1 Feb - 28 Feb 2015:
51% of consumers could achieve a saving of up to £213.29 with Gocompare.com car insurance