How to make your car insurance cheaper

Cheaper car insurance is attainable – here are a few tips on cutting your premium.

It is a legal requirement to insure you car annually. If you own and drive a vehicle, then you must renew it every year, unless you make what is known as a SORN (Statutory Off Road Notification). This informs the relevant authorities that you car is now no longer being used.

As all drivers know, car insurance can be very expensive, so it literally pays to know how to go about reducing the cost of this important part of ownership. If you are caught without valid insurance you are likely to get a fixed penalty of £300 and six penalty points.

This guide is an overview of how to get the best deals possible so that when your reminder comes through the post saying that your insurance is about to expire, you are in the best possible position to lower the cost.

Protect your no claims bonus

A no claims bonus is basically a facet of insurance that rewards you for every year you go without a claim. The more years you go without incident, the cheaper your premium becomes because it suggests you are a very safe driver.

You should therefore seek to protect this, which is one of the most effective ways of saving cash on insurance. While you will have to pay to protect this, the cost is minute to the savings to be made.

Pay a higher excess

Excess is the amount of money you are willing to pay as a driver when making a claim before your insurance company pays the rest. Excess comes in two parts: compulsory and voluntary.

When it comes to setting your voluntary excess, make sure it is within your means. You don't want to put yourself in a financial predicament if you unrealistically set it at an unachievable figure. The general rule is the more you are willing to pay, the cheaper your insurance will be.

Check to see you have an immobiliser fitted

An immobiliser is an electronic device that is fitted to a car to prevent it from being successfully started in an untoward manner. This safety feature basically prevents a thief from starting your vehicle without the correct key.

Check to see if your car is fitted with one as standard and if not, seriously consider purchasing a 'Thatcham approved security system', which is considered by the industry to be the most reliable. With this, the cost of your insurance will go down over the long-term.

Research online

The internet has revolutionised the way people engage with information and it is fair to say that if you are shopping around for the best deal, the web is the most reliable place to head to.

Use comparison websites to compare various prices and then use this information to negotiate with existing providers to see if they will match or even beat the quote that they have been given. Most will be happy to discuss new terms, as keeping you on as a client at a reduced cost is better than losing you altogether.

Consider third party

Third party insurance is ideal for people on a budget – it is also the legal minimum required by law. The government expands: "This means you’re covered if you have an accident causing damage or injury to any other person, vehicle, animal or property. It doesn’t cover any other costs like repair to your own vehicle."

It is perhaps most suitable for certain drivers, including people under the age of 25, those who do not have a no claims bonus, vehicles less than a £1,000 in value and those living in high risk areas.

Select the right kind of car

This is perhaps the most difficult aspect of reducing your car insurance, because naturally you will want a vehicle that you really love, be it for the aesthetics or the size of the engine.

However, be realistic about whether owning such a car is affordable. Yes, you may be able to pay for the vehicle itself, but, as an example, your three-litre sports car is going to have a higher premium, while also drink away your petrol. Be business savvy in this regard.

  • On: 26 January 2014
  • By: CarShop

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