How to get cheaper car insurance

Taking out car insurance can be a stressful and complicated process, and the sudden additional expenditure can ruin the enjoyment of getting a new car. Our car insurance tips will take you through the FAQs, the process, and help you get cheaper car insurance fast.

Why is my car insurance so expensive?

It’s important to first understand how car insurance is calculated, as there are many different factors impacting the price of car insurance premiums. The main car insurance factors are:

  • Voluntary excess
  • No claims bonus
  • Driver age
  • Driver history
  • Car make, model and age
  • Annual mileage
  • How you use the car
  • Where you live
  • Where you park

While some of these factors are largely out of your control, there are some factors you can influence  which can help reduce the cost of your premium.

Important: It is vital that you don’t use false information on any car insurance quotes or policy documents as this invalidates your policy. Insurers have the right to not pay out over any claim, cancel your policy, and charge you the correct premium as a lump sum.

How to get cheaper car insurance

Tips for getting cheaper car insurance

It can sometimes feel like the price of your car insurance increases for no obvious reason and it’s true; how companies calculate the price of their premiums is a grey area.

We have put together a list of top tips to help you save money and get cheaper car insurance immediately. These are tips which you can implement right away – whether you have a current policy, or you are looking to set up a new one.

Pay annually

Paying your insurance premium upfront for the year is recommended for people who can afford to do so. This could save you money on your policy compared to paying monthly, as monthly payments have interest on them. However, paying monthly is the only option for some people – especially young drivers, as some yearly payments can cost several thousand pounds.

Get rid of unnecessary policy extras

A lot of insurance companies will try and get you to add extra things to your policy, when in reality you might not need them. If you have add-ons to your policy, look into them and ask yourself if you actually need them as these extras can increase the price drastically.

Get a car insurance quote ASAP

Getting a quote for car insurance last-minute before you need a policy to begin can sometimes be more expensive. We recommend planning your insurance in advance, getting a quote at least a week before you need the policy to begin.

Compare car insurance quotes

Never settle for the first quote you get. Compare your car insurance quotes between the various major comparison sites to find the best deal, and don’t be afraid of contacting an insurer directly to ask if they can offer you a lower premium cost. Although this may seem tedious, quotes can vary in price depending on which site you are on.

Add a more experienced driver to your policy

If you are a driver under the age of 21, adding a more experienced driver to your policy can lower your premium. For example, you might want to add one of your parents to the insurance policy – this might lower the cost significantly.

Use the correct job title

Always be honest and accurate with your job title as this can affect premiums depending on the specific job you have. For example, if you are a waiter, don’t just put ‘waiter’ as your title, specify exactly who and where you waiter for.

Complete the Pass Plus training course

Pass Plus is an advanced driving course which once qualified for, could reduce your insurance premium.

Add a more experienced driver to your policy

Install a Black Box

A Black Box is a device which monitors your driving. It measures your speed, driving style, distance travelled and the time of day. Having a Black Box noted on your insurance policy can reduce your premium substantially. Sensible driving can be rewarded financially!

Check your insurance annually

Although you may assume your premiums with your current insurer will decrease after a year of cover, this isn’t necessarily the case. You can potentially save a lot of money by shopping around when your insurance is up for renewal. Another tip is to contact your current insurer when it comes to renewal to let them know you’re considering swapping to another provider. This can be beneficial because insurance companies can sometimes improve their offer if you tell them you plan not to renew with them.

Increase your voluntary excess

Raising your level of voluntary excess can lower the price of your insurance premium. If you choose a higher voluntary excess, this means you take on greater personal responsibility for the car and any potential damages incurred. However, if you are involved in an accident and you have to make a claim you will have to pay out this larger amount.

Change your choice of car

Cars that are very valuable, very powerful or have certain modifications can increase the cost of insurance. This is because insurers think they are more likely to be stolen, get into an accident, or will be more expensive to repair if an accident happens. If you’re looking to minimise your insurance premiums, buying a car that is most suited to your needs will ensure your premium is no higher than it needs to be.

Add a more experienced driver to your policy

Think about parking

Some insurers will consider where you park your car as a factor in calculating insurance costs. Whilst most people might assume that keeping a car in their garage overnight would result in a lower premium, this is not necessarily the case. If you have choices of where to park your car, you should choose different options when getting quotes, to see which is cheapest.

Types of cover

What your car insurance covers can vary hugely depending on what policy you have. For more information on the different policies available, visit our car insurance types page.

At Moneybarn, we provide car finance for people with bad credit . Why not get in touch? We’re happy to help!