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How Can I Make My Car Insurance Cheaper?

Posted on 10th May 2022
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How Can I Make My Car Insurance Cheaper?

The renewal or initial purchase of car insurance can be a mixed bag as you navigate the options available to you. You might come across a multitude of policies and prices, questions and queries. Sometimes, the end result can be a little alarming and put a bigger dent in your wallet than expected. How can you make it cheaper?

Follow our steps below for cheaper car insurance and how to keep more money in your pocket.

Switch car insurance providers

As with most insurance policies or bills, you can use comparison sites to compare potential costs and policy benefits. As of January 2022, an existing policy holder cannot be charged any more than a new customer. This leads people to be under the impression that their costs won’t increase, but this isn’t always the case.

Over the past year, the average cost of insurance has increased by more than £10. Comparing will allow you to weigh up all possible options and potentially save some cash.

Pay for car insurance yearly

Many of us like to pay for things monthly, as the outlay looks significantly less on a bank statement. Plus, you don’t feel the impact of a lump sum leaving your account on pay day! Companies dealing with finance love monthly payment plans, as they can add interest to the total, making for a more expensive overall cost to you. In addition, even if no interest was added, you will sometimes see monthly payments advertised at an amount that works out as more expensive than a one-off charge.

Accurate mileage makes for cheaper car insurance

If you spend a lot of time behind the wheel, the potential for a claim is much higher than if you rarely drive. This leads to a more expensive insurance bill. If you find yourself making lots of shorter drives that could easily be replaced with walking, get the exercise to save you money. Having said that, if your mileage is exceptionally low, an insurance company may see this as reason to charge more. The safest option would be to check your most recent MOT’s for a rough idea of your mileage.

Downsize your car for cheaper car insurance

Certain cars carry a certain status, leading to more costly insurance. Expensive cars are more likely to be targeted by thieves, and therefore have more expensive insurance. Likewise, a more powerful vehicle could mean more expensive damage claims.

Make your car more secure

The harder you make it to steal your car, the lower the chance of having to make a claim. This then makes for cheaper insurance policies. There are a few simple things you can do to make your car more secure:

  • Where possible, add things like steering locks
  • Park in well-lit areas
  • Where your car doesn’t have an alarm or immobiliser installed, get them. Many modern cars have them fitted as standard

Telematic car insurance policies

Specialist policies have been introduced that monitor usage of your car. They log mileage, destinations, how you drive and when you drive. This provides an accurate look at the use of the car, potentially leading to cheaper insurance. That being said, if it is noted that the driver is classed as high risk (due to times they drive or use of unsafe roads), the premium may be higher.

Consider all the add-ons that come with car insurance

When shopping for a policy, you may find that you are offered a whole host of add-ons. An all-inclusive price may look appealing, but it’s important to check whether you really need all these extras. Does your insurance offer European cover? If you don’t drive abroad, don’t choose this add-on.

Protect your no claims bonus

All the time you are not claiming, you are heading towards a cheaper cost on car insurance. Every year without a claim adds to your no claims bonus. The bigger the bonus, the bigger the discount on your policy.

Alternatively, having advised against unnecessary add-ons, one addition that could be worthwhile is a protected no-claims bonus. This bolt on means you can make a limited number of claims before your bonus is affected.

Always renew your car insurance in time

When you receive notice that your renewal is due, begin to shop around. Comparing other providers against the quote your current one has sent you could give you the chance to save big. Leave it too late and as you approach the renewal date, and the quotes will gradually increase.

Common car insurance questions

Does my job affect my car insurance policy?

Yes – many things are taken into consideration when you take out car insurance. For example, someone who works Monday-Friday 9am-5pm will have a distinctly different policy to those working late nights in busy city centres.

Likewise, the way your job is described could influence your insurance. You could be a barber, but if you list your occupation as a hairdresser, the costs could be different.

Is it cheaper to insure an electric car?

At the moment, no. Whilst cheaper to run, the policies that come with driving them do cost more. This is mainly due to the higher purchase price of the car and the smaller amount of available data.

Are automatic cars cheaper to insure?

Much like with electric cars, insuring an automatic car is commonly more expensive due to the vehicle cost. The parts within an automatic car can be more expensive to replace than in a manual car, and the policies will reflect this.

Euphoria Finance are market leaders in providing new and experienced drivers with car finance. Be it car finance for students, or if you are on the lookout for cheap car loans, we can help. Contact us today for a free quote and secure fast car finance today.

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