Five Tips to Help you Save Money on Car Insurance
Cars are essential for many of us these days. But it can be incredibly expensive to be a car owner. Not only do you need to find the funds to buy the car in the first place, but you then need to pay for essentials such as Car Insurance, Road Tax, petrol and general car maintenance. It all adds up! There are a few things you can do to help to bring the costs down. These are my top five tips to help you to save money on your car insurance.
1. Shop around for cheaper car insurance.
This has to be the biggest way to save money on car insurance. You can save hundreds of pounds by spending a short amount of time shopping around for a better deal.
NEVER allow your insurance to automatically renew with your existing insurer. They should send you a renewal quote a few weeks before your insurance is due to expire and it seems that these days most insurers will need you to contact them to cancel your policy before your renewal date, otherwise they will automatically renew the policy at a higher rate. Make a note of when your insurance expires so that you don’t get caught out, just in case the renewal letter gets lost in the post. In case you want to start or renew your car insurance in Chicago, look no further than Insurance Navy. Their affordable insurance will help you save up a lot.
It only takes on average 4 minutes to fill in a few details and receive your quotes, and this few minutes really could save you hundreds of pounds.
2. Add a named driver
I was surprised to find that adding my husband onto my policy as a named driver actually lowered my insurance quote. If you add an experienced driver with a clean driving record to your policy, it really can save you money. Make sure you have the other person’s permission and check that you enter all of their details correctly too.
3. Be savvy with your job title
Now I’m not advising you to make out that you’re the Prime Minister or anything, you need to be sure that all of the information that you provide is factual. However, according to The Mirror, you can get a cheaper quote if you just tweak your job title slightly!
“If you describe yourself as a “chef” when filling in your car insurance application your average quote is £98 higher than if you write “kitchen staff”…Music teachers” pay £86 more than “teachers”, “office managers” pay more than “office administrators”, and “construction workers” pay more than “builders” who – in turn – pay more than “bricklayers”.
(Source – Mirror Money)
Mess about a little with job titles if you can and see if it makes a difference to your quote – imagine if you could save an extra £98 just by doing that!
4. Consider increasing your voluntary excess
Increasing your voluntary excess even a little bit will decrease your overall insurance premium. Think carefully before you do this though. Voluntary excess is the amount you will have to pay out of your own pocket towards any repairs if you make a claim on your insurance (you will be able to claim this back if you’re found not to be at fault). If you have a low value car, then be extra cautious – you don’t want your voluntary excess to be more than, or close to the total value of your car.
5. Pay annually if you can
It’s tough, I know. But if you can, then it’s worth saving up throughout the year and paying for your car insurance in one lump sum at renewal. When you pay in monthly instalments, you actually pay more over the course of the year.
The amount you save will vary depending on which insurance provider you choose. However, in this example, paying yearly saves a total of £33.07. That may not seem a massive amount, but it could actually be a week’s worth of food for a couple or a pair of shoes for one of the children.
Bonus tip – Always practice safe parking
This won’t have any immediate benefit on your insurance costs. That’s why it’s a bonus tip. Over the long term, however, it could make a huge difference to how much you pay for your car insurance.
At the end of the day, the cost of your insurance reflects how an insurer sees you as a customer. The longer you can go without making a claim, the more impressed your insurer will be. This means you need to drive safely and park safely. Driving safely comes with experience. Parking safely, on the other hand, comes with preparation.
At home, always put your car into a garage if you can. If you can’t, then consider investing in a basic CCTV system (and some motion-sensitive lights to go with it). Ideally, combine these with a domestic parking barrier. This won’t protect a car from the elements and accidents. It will, however, do a lot to deter a thief from trying to make off with your lovely Vauxhall Pentagon.
When you’re out and about, try to use official car parks as much as possible. It may be a pain to have to pay for them, but the security can be worth it. If you must park on a street, try to choose a busy one with plenty of lighting.
Wherever you park, always use immobilizers on your steering wheel and gear stick and hide (or remove) any tempting valuables. That includes if you’re just “popping out for five minutes”.
It’s always better to pay for large purchases in cash, but the reality is that many families need to take out auto finance in order to fund large purchases such as the next family car. Just be sure to shop around to get the best deal.
*This is a collaborative post.
