The huge increases mean motorists renewing their policies are paying massive premiums. Analysis by market research agency Consumer Intelligence published in May found the average motorist is paying too much a year to insure their cars.
There is no end in sight to the price rises as average motor insurance premiums are racing away and all the indications are that they will continue to climb.
Most of the factors that determine premiums, such as your age and occupation, are outside of your control.
Other ways to cut costs meanwhile, such as swapping comprehensive cover for third party fire and theft, or agreeing to a higher excess, force you to accept a lower level of cover.
In this article, we tell you how to drive down your premium without cutting back on your cover.
Get more than one quote
Shopping around remains the best way to cut costs without reducing your level of cover. You can find different quotes and get private hire insurance uber here.
The most recent car insurance survey by the Competition and Consumer Protection Commission (CCPC) found significant differences between insurers for comprehensive insurance, and for third-party, fire and theft cover.
Don’t just jump on the first price that you see. Take an hour or two out to ring around and get the best price.
Use a broker
Using a broker can increase your chances of getting the best price because they will compare quotes from an array of insurers.
Brokers also have access to cheaper insurers who don’t deal directly with the public. For example, XS Direct specialises in providing cheaper cover to motorists who have previously made a claim and lost their full no-claims bonus.
However, XS Direct does not deal with motorists directly and is only available through brokers.
Add a spouse to your policy
Adding your other half to your policy can bring down your premium without sacrificing your level of cover. If you have a spouse or a partner, it’s very important that you get a quote for a policy with them included.
Having a second car in the family, even one insured with a different company, can also bring down the cost of your premium.
A lot of people don’t realise that often insurance companies will give you a discount if there are two cars in the family, even if it only insures one of them
Make use of telematics
You can get a discount on your policy by agreeing to allow your insurer to monitor your driving. Known as telematics, insurers use special software to analyse your driving habits and improve their ability to calculate how much risk you present.
It works by you either downloading an app on your smartphone or having a physical “black box” installed in your car that tracks your driving.
Motorists who sign up for telematics – in particular younger drivers – can make significant savings on their premium.
Set your premium
Securing yourself against potential future price hikes is a prudent move that can be achieved by fixing your insurance premium. This proactive measure allows you to solidify the current rate, shielding you from increased costs down the road. The added benefit is the assurance that your premiums will remain stable, providing you with peace of mind.
Typically, the option to fix premiums is more readily available for new cars, given their higher insurance costs. Beyond cost containment, this approach proves advantageous for individuals planning to sell their cars in the future. By fixing premiums, they can extend this financial benefit to the new owner.
Even if you possess an older vehicle, you can still capitalize on this strategy by updating your car insurance policy. During this process, the insurance company may request a carfax report for your vehicle. This report aids in determining your car’s value and assures the insurer that your vehicle is well-maintained and free from a history of accidents. You can acquire this report from a cheap carfax report provider and then furnish the report to your insurance company.
Regardless of whether your vehicle is new or old, taking control of your premium allows you the flexibility to compare car insurance rates and secure the most favorable deal. Prioritizing the comparison of rates before committing to a policy is a wise practice that ensures you make an informed and cost-effective decision.
Keep in mind that the premium costs can be significantly influenced by several factors such as whether you have a good driving record, maintain a low-risk profile, and have dedicated space to park your vehicle. Having a safe space to park like a garage can result in lower premium costs, as it reduces the risk of theft or damage. You can look for Garage Doors Medway, from Bulldog Garage Doors or similar firms, to enhance the security of your vehicle and further contribute to potential premium reductions.
Think twice before you claim
For minor accidents where no third party is involved, paying the cost of repairs yourself rather than claiming on your insurance may be the cheaper option.
Insurers give generous discounts depending on your record of claim-free driving, with maximum discounts of 50% to 75% depending on the insurer. If you make a claim, you can lose the discount and have to rebuild it from scratch. This could ultimately end up costing you more than paying to repair damage to your car yourself.
Use your common sense in relation to claims. You could make a claim that ends up costing you thousands in additional premiums over the next five years.
Get a multi-policy discount
Having more than one policy with the same insurance company can often get you a discount. Use the fact that you have other products or policies to gain leverage and get a discount on your motor policy
Make sure your insurer is aware of what other policies you hold – they may not offer the discount otherwise.
As an example, both Liberty Insurance and Axa give 10% off second and additional cars insured, or if you also have home insurance with the company. Aviva gives a 25% discount on premiums for second and additional cars.
Younger drivers
For those drivers under the age of 25, the average insurance premium stands at a staggering value, as indicated by Consumer Intelligence. Industry experts affirm that successfully completing the driving test can result in a substantial reduction of 25%-30% in premium expenses. Consequently, it’s a commonplace strategy among young drivers to undergo the driving test, a move that effectively trims down the burden of premium costs. This is where platforms like driving test cancellations websites prove invaluable, facilitating the swift processing of test appointments.
Beyond this avenue, there exists an opportunity for younger drivers to economize further by enrolling in an insurance provider’s designated driving course. Notably, Aviva extends a 5% discount on premiums to young drivers who excel in its Ignition assessment.
Similarly, insurers present a potential reduction in premiums to those who secure 12 driving lessons through Motoring via the insurer’s arrangement. Another approach to cost-cutting is for younger drivers including their parents under the coverage.
Insurers probably won’t ask you if you want your parents on the policy, so you should be the one to suggest it.
