In fact, a recent study by Premium Credit found that an increasing number of people are researching the most competitive deals in a bid to keep their bills down. More than 53% of customers have been committed to spending more time finding the best cover and price, with 71% motivated by rising prices.
One such area that customers will be searching for competitive deals is car insurance, which covers your vehicle against financial losses associated with accidents, theft, or damage. While car insurance is a necessary expense (as well as a legal requirement), there are steps you can take to potentially save money.
Doing your research
It’s easy to receive your car insurance renewal letter and be tempted to stick with your new quote and automatically renew for the sake of convenience. However, this is a common mistake that many customers make when it’s time to renew, when you should be shopping around to make sure you’re still on the most suitable, affordable product for you.
While there is the possibility of discounts being available to loyal customers from certain insurers, shop around on price comparison websites to make sure you’re on the right deal and getting the most value for money. You should also get in touch with your current provider to see if you can negotiate to a cheaper rate based on what other deals are out there.
Have your circumstances recently changed?
There are a number of factors that can impact your insurance costs and premiums, from your age, address, the type of car you drive, and your claims history. While variables such as being a newly qualified driver, or living in an area with a history of crime, can lead to increased premiums, you may find that others can actually save you money in some cases.
Whether you recently moved house, changed your line of work, or are adding a new driver onto your policy, you should make sure that any major changes in circumstance are updated accordingly. You may also find that installing security devices, such as alarms or immobilisers, could lower your premiums.
Remove any unnecessary extras
While making sure you’re on an adequate level of cover for your vehicle is important, there may be some hidden extras you can remove to cut down on costs. Take a look at the ins and outs of your current policy in detail, as there may be elements you can remove, or deductibles that you can increase, to reduce overall costs.
While cover for breakdown services, lost keys, and courtesy cars are handy to have for peace of mind, you may be able to find these cheaper as separate policies - or want to remove them entirely if you don’t think they’ll be necessary.
Black box policies
You may want to consider opting for a policy where telematics - also known as a ‘black box’ - are fitted to your vehicle. This monitors your driving, assessing factors such as your speed, braking, and acceleration, with the data then used to inform your level of risk and premiums. If you’re a safe driver, you could be rewarded for good driving behaviour, and may even find that your premiums are reduced accordingly.
Consider paying your insurance annually
If you are financially able to, or have savings put aside, you may want to consider paying for your car insurance in one lump sum for the year as opposed to monthly instalments. This can sometimes result in reduced costs overall, as you may end up paying more interest over the course of the year by paying on a monthly basis.
By comparing quotes, adjusting coverage levels, making sure your policy is up-to-date, and taking advantage of discounts wherever possible, you can potentially save money on your car insurance. You just have to make sure you strike the right balance between looking for the most competitive deal, and having adequate cover to fully protect yourself and your vehicle on the road.
Related Articles
What is a mortgage?
Getting a mortgage with a new job
