Car insurance is a dream product for firms offering drivers cover because everyone on the road must have a policy by law.
Just because you must have car insurance does not mean any driver has too pay for cover they don’t want or need – providing the policy meets the basics.
For drivers looking to save money on car in surance but still stay on the right side of the law, a little time on an insurance comparison like Quoteline Direct can save some cash.
Five simple and effective ways to cut the cost of car insurance are:
Look at increasing your excess
An excess is the money a driver has to pay as a share of the first insurance claim in any year of cover.
Some excesses are compulsory – that means the insurance provider imposes an amount a driver has to pay in an effort to reduce risk by penalising them if they do not drive carefully.
A voluntary excess is a driver violunterring to take on some of the insurer’s risk by agreeing to pay part of the first claim out of their own pocket.
The more a driver agrees to pay, the lower the annual car insurance premium as the dddriver is taking more risk on for the provider.
For example, a driver has a £250 compulsory excess and offers a £500 voluntary excess. A claim is made on the insurance for £1,000 – the driver pays £750 and the insurance company £250.
Tighten your car’s security
Drivers who look after their cars by fitting anti-theft devices like alarmns and steering locks often win a better deal than drivers who don’t bother caring for their vehicle.
Security equipment with a Thatchem rating is a good investment.
Loyalty doesn’t count – shop around
Don’t stick with the same insurer year after year. Car insurance is a cut throat business and lots of big name companies are after your premium.
Use a site like Quoteline Direct to shop around to make sure you are receiving the best cover at the right price before sending off that renewal again this year.
You might find you can save some cash and pick up some incentive deals like money off vouchers or free gifts.
Keep your mileage down
It’s a well-kep trade secret, but many insurers will offer a discount if you drive less than 5,000 miles a year – don’t forget to ask if you fit the bill.
Named drivers can boost the premium
Adding a young driver or someone with a poor driving history to a policy can push the premium sky-high.
Conversely, adding an older driver with a good history can sends the cost down.