What you need to know about car insurance:
After council tax, the next highest expense for Britons on a monthly basis is car insurance. This seems odd because we have seen a decrease in petrol and diesel prices, so why then is car insurance so high?
Did you know that car insurance has risen by 50.9% over the last year, with the average quote for car insurance being increased by 34% in the year to May? (Consumer Intelligence and Consumer Intelligence, pg. 2)
The average premium price quoted for drivers under the age of 25 is £2,145, £850 for 25-49-year-olds, and £568 for those aged 50 and above.
But, although there have been large increases in the amount that consumers are needing to pay for car insurance, car insurance providers maintain that they are not making any profit from these sums of money.
So, where does this leave consumers? Well, fortunately, with the rise in prices all around, there are a few ways in which you can try to save money whilst shopping around for the best prices to make sure you are covered in the best way possible.
How to save money on car insurance:
Add a named driver
Adding a named driver to your car insurance policy is another means of lowering your premium price.
You can save up to £240 by adding a more experienced driver onto your insurance if you are aged 24 and below and up to £250 if you are between the ages of 25 and 34. It is also important to keep in mind that the named driver on your insurance policy does actually need to drive the car in order for the policy to be valid.
Whilst we are on the topic, if you are interested in breakdown insurance, contact Protect Your Family for more information.
As with anything in life, shopping around until you get the best deal is a great strategy to use when looking for the best car insurance policy.
There are many websites that you can access that will allow you to find the best deal for the type of coverage that you need. Protect Your Family is one of them and can help you find the best breakdown coverage and car warranty policies.
Another thing to remember is that ‘changes to insurance industry rules that took effect at the start of last year mean insurers are banned from quoting policyholders a higher price to renew than they would offer a new customer.’ (Jones) So, keep in mind that you will end up paying more money if you try to switch your insurance every year.
Get a black box
Installing a black box in your car means that insurers can start rewarding you for driving sensibly, which results in lower premiums for younger drivers too.
The idea of a black box is that your driving is monitored, so you need to be mindful of speed limits and reckless driving. Additionally, black boxes take a look at how you break and the way in which you take corners.
Another thing to bear in mind when looking at cheaper car insurance policies is your job title. If insurance companies sense that your job is high-risk, your premium is likely to be a lot higher.
However, if you word your job title in a low-risk way, you will be able to save on your insurance premium.
Buy in advance
Insurance companies are more likely to give you a lower premium when you renew your insurance early as this shows them that you plan well and are, therefore, less risk-prone.
Of course, we can’t always guarantee that risks won’t happen, but as much as possible, try and prove to the insurance company that you plan as much as possible to avoid them.
You can renew your car insurance up to 29 days before it runs out, but the best time to renew your insurance is 27 days before, allowing you to save up to 44%.
Insurance companies don’t like modifications to cars as they make your car more attractive to thieves. So, if you can avoid it, it is best not to add any modifications to your car. This will help in keeping your car insurance premium low.
The less you drive, the less chance there is of you being in an accident, which results in a lower premium. It makes sense, right?
As much as you can, try and use other means of transport if you don’t need to drive. Also, make sure that you do not overestimate your mileage when re-instating your insurance. One way you can do this is to keep track of your previous year’s mileage or by looking at your MOT Certificate.
For more information on getting affordable and reliable vehicle breakdown coverage, contact Protect Your Family!