As every year passes insurance seems to creep up higher and higher and near on unaffordable for the young but not for all as there are ways to reduce the cost of your premiums which insurers prefer you not to know, as knowledge leads to greater power so to empower you next time, have a look at the tips which shall be listed below SO TAKE NOTE as this will save you money!. Whilst you may not be in a position or able to utilise all the tips offered, if you can use a number of them you’ll be in a far better position with extra cash in you pocket,….
Whether new or experienced these tips will help
Pay in a lump sum: Often people prefer to pay monthly even when they can afford to pay all in one. so STOP as this is madness and can literally save on average from £80 – £200 a year by paying off in one lump, you’re often offered better deals and obviously there is no interest. Whilst the realisation is not everyone can do this see the following tips to help you out further on.
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The add ons: Other things that can reduce the price are removing other types of cover including breakdown cover, windscreen cover, cover when driving abroad and the courtesy car option. As often you’ll get a free courtesy car if you take your car to a main dealer for repair and getting breakdown can be cheaper going direct with RAC etc than adding this all on your policy building it up more and more to be an expensive list of add ons.
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Occupation, Occupation, Occupation: Believe it or not your occupation has a massive impact on your insurance, whilst we are obviously saying not to lie, the wording of your job can affect your policy so if you work in a kitchen and you say Chef instead of Kitchen Staff, saying you’re a chef is actually more expensive on your premiums. Other higher-paying jobs include music teachers, who will pay £86 more than teachers, while copywriters will offer a different quote than writer. One of the highest are personnel that commute to sites for work on construction etc. So be careful with your wording and choose correctly or you’ll be out-of-pocket!
DO NOT auto renew: Nowadays insurance companies will ask you can they store your card details for auto renew instantly REFUSE this. As I can guarantee you’ll be out-of-pocket by the hundreds. I speak from personal experience recently renewing my insurance I refused the auto renew so had a reminder quote sent to me in the mail, to which I rang up got a cheaper quote by £80 then rang again 12 days later to get a further £110 off and this is because insurance changes rates on a daily basis, so can rise or drop dramatically depending on the day. So keep ringing back after a few days and get the best price. Top tip make sure you do this weeks before renewal as then you have more time and choice = less pressure.
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Price match / Switch comparisons: Often most insurance providers will offer a price match so go on a comparison website get the cheapest quote and do as advised above.
Adding an extra driver to the policy: You can reduce car insurance costs by adding an extra named driver to the insurance policy – especially if they’re older and more experienced on the road, regardless of whether they are male or female, although you should avoid those with points and fellow young drivers if you’re also young.
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Where the vehicle is kept: Telling the insurers that the car is in a garage on a drive in a gated community or off street parking also drops the premiums dramatically. As most repairs or knocks happen to cars left parked on the roads or busy areas over night. Having an alarm, tracker and immobiliser also helps in this matter.
The level of cover you need: Comprehensive car cover is normally the most expensive type of insurance it covers both your car and other vehicles if you have an accident. Third-party cover the most basic level of cover covers claims against you if you’re involved in an accident and injure someone. It also covers the cost of repairing or replacing the other person’s car, but not your own. Assess how often you plan to drive, what you can afford to cover, and what type of superficial car damage you might be prepared to live with.
Increase your excess: Choosing to pay a higher voluntary excess on top of the compulsory excess you’re quoted, the amount you’d have to pay up front if you made a claim can significantly reduce the cost of your car insurance. However, make sure you’re able to afford to pay the excess if you do have an accident as young drivers with little money could struggle to stump up £3-400 or more after a crash. Also beware of overly mega cheap insurance as they hide that behind a massive hefty excess you would have to pay, read all the small print.
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Do a Pass Plus: Or a similar qualification, can cut the cost of your premium massively. A pass plus is an advanced driving certificate mainly for new and young drivers, this entails driving at night in heavy traffic on motorways etc and can be done after your driving exam.
Mileage: If you tell your insurers you do under 3500 miles a year your insurance will drop dramatically, this can earn you a discount simply because cars that are on the road less often are less likely to be involved in an accident. AA Insurance confirm that accepting a 12,000-mile annual cap would earn a 5 to 10 per cent discount. A 5,000-mile cap can earn even more.
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