Advice and Tips

5 top tips for keeping your insurance prices down

Moneybarn News // 25 January 2016

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The cost of car insurance is rising, recent data released by the Car Insurance Price Index produced by in association with Towers Watson revealed yet another rise in the costs of car insurance. The rise is the biggest increase since 2011, and shows an average quarterly jump of 6.9%, with a 13% increase over the whole of 2015.

Historically, January is a month for reflection, new beginnings and the implementation of New Year’s resolutions to shrink waistlines, and reduce the costs that leave your wallet lighter than they should each month. Supposedly, the weekend that has just passed is the one when we are most likely to break these good intentioned resolutions. Therefore, we share with you our top tips to keep your car insurance costs down for the whole year, so there is one resolution you won’t be breaking.

1. Shop around

It can be worthwhile to use comparison sites to find the best deal, rather than sticking to your usual insurance provider. Don’t be afraid to haggle on the price to achieve further discount.

2. Telematics

Also known as a ‘Black Box’, telematics is a particularly good option for young or inexperienced drivers. It bases your premiums upon your actual driving style rather than statistics, by giving you the opportunity to demonstrate that you are capable and responsible behind the wheel.

3. Increase your excess

Excess is the part of a claim that is paid by you, by increasing this amount you can lower your premiums.

4. Don’t pay by Direct Debit

Paying Direct Debit can raise costs as you end up paying the monthly interest charges, therefore, paying for the insurance in one go can actually work out cheaper.

5. Choose your car wisely

The car you drive can have a great impact on the amount it costs to insure, factors that can have an effect include: engine size, size of the car, age, mileage.