Cheap car insurance is just a few clicks away from the comparison site mustard.co.uk. But other than shopping around, what can you do to reduce the cost of car insurance?
Here are 10 tips to help you get the insurance you want at an affordable price.
Paying upfront can mean breaking up with huge sums of money, but it’s cheaper in the long run. Monthly installments can be convenient, but they include an interest fee that increases your overall payment.
If you are on a particularly tight budget, consider paying your premiums using an interest-free credit card. This gives you some breathing space and means you can avoid attention. However, don’t forget to keep repaying your credit card if you don’t keep repaying it, as it can incur late fees and affect your credit score.
2. Consider all policy types
The minimum level that can be guaranteed by law is only for third parties. In the past, this often meant the cheapest type of policy available, but today this is not necessarily the case. This is because premiums reflect the fact that third-party policyholders’ claims are higher compared to insurance with comprehensive coverage.
This is not to say that third party policies are more expensive for everyone. Premiums are tailored to your needs and circumstances, and third-party coverage may be cheaper for some drivers. The point is, don’t assume that low-level insurance will be the cheapest. Always compare.
three. buy only what you need
Some policies include features you already have. For example, bank accounts sometimes offer breakdown and recovery services as part of a package.
Doubling the services you already have is a waste of money, and neither is simply buying a ‘nice to have’ feature. A good example of this is European insurance. So while your dream of driving in Europe may appeal to you, ask yourself if it’s actually possible.
4. Avoid car modifications
Cars that have been modified for cosmetic or performance reasons cost more. Because adaptation can make a car unique, it will cost more to repair or replace in the event of an accident.
5. Add named driver
Adding a nominated driver to your insurance can help lower your premium. Especially if you are under 25 and adding older or more experienced drivers.
That’s because having more than one driver essentially means less sitting in the driver’s seat and less likely to have an accident and file a claim as a result.
6. Consider telematics car insurance
Telematics insurance adjusts premiums based on how you drive. If you drive well consistently, you’ll see your premiums drop much faster than simply building up no-claim bonuses over the years.
If you select this type of policy, the telematics device will be mounted on your car. The device monitors driving aspects such as how braking, cornering and accelerating, for example. For example, if you are young or have a driving history, this is an option worth considering, especially if you face high insurance premiums.
7. Invest in car security
The harder the car to steal, the more you can reduce your insurance premium. From an insurance standpoint, leaving your car in a locked garage overnight is an ideal scenario.
If you don’t have a garage or dedicated driveway, consider increasing your vehicle security. You can do this by investing in a system approved by security expert Thatcham, or by purchasing a device such as an immobilizer that acts as a deterrent.
8. Check your mileage accurately
If you continue to drive on the road, you are more likely to have an accident. With this in mind, overestimating your annual mileage can end up paying a higher premium.
Rather than rounding up your mileage, try to be precise and think about the journey you actually travel. Chances are you will drive fewer miles than you think.
The figures show that average annual mileage has generally decreased annually since 2010, with most drivers driving about 7,000 miles per year.
9. adjust your position
Some positions have higher premiums. See what the different options are for describing your role and how they affect the amount you pay. For example, ‘receptionist’ versus ‘medical receptionist’ or ‘writer’ versus ‘journalist’.
The position you choose should be an accurate description of what you do. Otherwise, you risk voiding your insurance policy, which means your insurance company may refuse to pay if you make a claim.
10. Do not auto-renew
Just because you got a lot of auto insurance last year, sticking with an insurer doesn’t guarantee you’ll get the best insurance this year.
Auto insurance is a highly competitive market, so always compare quotes before your current insurance expires. To start your search for cheap auto insurance, go to mustard.co.uk.