The cost of motor insurance can take a big chunk out of your driving budget, but it doesn’t have to be that way. Follow these 10 tips to help you get your annual premium down. If you are looking for a quote, please feel free to call us on 01732 471950 or leave a message here.
Buy Through A Broker
As an insurance broker, it may seem like a biased tip, but rest assured insurance brokers can save you time and money by searching the market to bring you the best deal and advice. We are experts in negotiating the minefield that can be insurance. We will always give you the best advice and highlight areas where you may not be insured. Our job is to give you the information to make an informed decision. Insurance may seem a grudge purchase, but it is designed to give you peace of mind and protection for you and your vehicle. Usually, our prices come out cheaper than what you could achieve by going to the insurer yourself. To get a quote, please click here.
Request A Higher Excess
Most insurance policies include an excess charge. This is an amount that you have to pay towards any claim made. If you’re prepared to increase this, you can get a reduced premium. However, please note that if you were to increase your excess by £100 this doesn’t necessarily result in your premium going down by £100.
Agree To A Mileage Cap
This can earn you a discount simply because vehicles that are on the road less are less likely to be involved in an accident. By accepting a 12,000 mile annual cap you could earn a discount of 5-10%. A 5,000 mile cap could earn even more. This is particularly useful for households with access to more than one vehicle. Please note that quoting a lower mileage than what you will be doing realistically may impact any claims made and could possibly result in cover being made void.
Consider Downsizing
If you were to purchase a lower value vehicle with a smaller engine size it may qualify for lower insurance bands, which attracts lower insurance premiums. This is more noticeable for young drivers as anything below a 1200cc engine will prove to be cheapest.
Keep Your Car Garaged
Keeping your vehicle in a garage or on a drive rather than out on the road can take between 5-10% off of your insurance premium. More commonly, vehicles parked on a public road away from your home and out of sight are more likely to be stolen or broken into at night.
Additional Driver Qualifications
Once you have passed your driving test and you have a full UK driving license, everyone has the option to take advanced driving courses.
The Institute of Advanced Motorists (IAM) offers an additional driving qualification which costs £139.00. On average, taking this course could reduce your annual insurance premium by 5%. However, this course is recommended for drivers who have been on the road for at least 10,000 miles.
The most common additional driving qualification is the Pass Plus scheme. Its original selling point was the promise of a reduced rate in the driver’s insurance policy, something that you may still see boasted on the websites of some driving schools. However, the vast majority of insurers no longer recognise the Pass Plus qualification. There are still discounts to be found, but these reductions are relative to the high cost of the new driver’s premium and you are unlikely to recoup the cost of the course itself. The course costs in the region of £160-£200.
Don’t Assume Third Party Cover Is Cheaper
Third party insurance is the legal minimum, covering you against damage caused to other people’s vehicle, property and the cost of any compensation for injuries. However, this isn’t always the cheapest option. We are finding that more and more insurers are offering cheaper rates for fully comprehensive cover, which covers your own vehicle as well any third party damages, because insurers are assuming that if you only take out third party cover, you may care less about your vehicle and are therefore more likely to have an accident.
Limit Your Named Drivers
The more people who are covered by your policy, the more expensive it is likely to become. Young drivers are particularly expensive to insure, so make sure you remember to take your children off of your policy when they get their own vehicle. Alternatively, if you are a young driver, adding more named drivers, such as parents or carers who have been driving longer, would typically reduce your insurance premium.
Don’t Use Your Vehicle For Work
For a lot of people, driving to work is a necessity as more of us are working outside the towns and villages that we live in. However, if you do not require your vehicle to drive to and from your place of work, remember to make your insurer aware as this can reduce your insurance premium as you will not be using your vehicle in peak hours of the day where traffic and busy roads are likely. In this instance, the cover that you will require will be for Social, Domestic and Pleasure use only. Maybe consider walking or commuting to work on public transport such as the train and bus.
Consider Alternative Payment Methods
So you have your quote that you are happy with and now it’s time to part with the cash. Paying for your insurance premium upfront in full can be daunting especially if we don’t have the full cost available. As such, most insurance brokers and insurers offer the facility to pay insurance premiums on a monthly direct debit or premium finance facility. Paying for your insurance in monthly instalments makes the process seem more manageable, but it’s likely to cost you between 10-25% more in the long run.
