How To Save Money On Car Insurance: Money Saving Tips

Car Insurance is one of those kind of necessary evils really isn’t it? You’ve got to have it, but sometimes it can take a hefty chunk out of your salary. The problem is that it’s a bit of a vicious circle really, as premium prices rise it is estimated that there are more uninsured drivers on the road, and what happens if you have an accident with an uninsured driver? Premiums rise even more, so although we’ve established that you have to have it, let’s look at the best ways to make it more affordable.

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Top Ten Tips to Save Money on Car Insurance

    1. Shop around – don’t take the first price you find, and don’t automatically renew your policy with the same company as last year just because it’s the easiest option. It might be easy, but it won’t necessarily be the cheapest option. Get quotes from loads of different companies, in fact, there are tons of websites now which can compare prices for you from hundreds of different insurance companies and you only have to enter your details once, the difference can be pretty amazing, you could save yourself a hundred bucks or more! Sounds good to me.
    2. Pay upfront – this might not be an option for you, but if it is it can save you some real money. If you go for the monthly options you might find that you’ll be paying 20% or even 25% on top of the original quoted price. It’s a shame isn’t it, how those with the most money are able to save even more money, life can be so unfair!
    3. Don’t crash – now, this might sound a bit obvious but the best way to see your insurance premiums reduce significantly each year is by behaving yourself, not getting any violations and not being involved in any accidents. Drive carefully and reap the rewards. You can get up to 75% discount if you manage to keep your nose (and bumper) clean for 5 years or more.
    4. Swop your car for a cheaper model – this can free up some cash for other things too, and you might be able to get a double whammy and pay for your insurance up front (see #2). How about fitting an anti-theft device or car alarm too, insurance companies like that sort of thing, it means that your car is less likely to be stolen and they won’t have to cough up any dosh.

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  1. Park off-road – if your garage is like mine used to be, with not enough space to fit a bicycle never mind a car, then it’s time you de-cluttered and used it for what it’s meant to be – hold a drive sale, clear out your junk and park your car safely in the garage – insurance companies like that sort of thing too, and you won’t have to scrape the ice from the windshield every winters morning.
  2. Increase your excess – be careful with this one. On the one hand, if you increase your excess (i.e. the amount you have to pay when there’s a claim before the insurance kicks in) then your premiums will be lower, but as I’ve just said, if there is a claim you’ll have to fork out the first amount of money, so try to keep a good balance.
  3. Add another driver – I know, it seems silly, but often if you add another driver (somebody older with a good driving history preferably, not your 18 year old son, that just pushes the whole thing skyward) then very often the premiums are reduced. If you’re part of a couple, don’t forget to tell the insurance company.
  4. Pay As You Go – some insurance companies have come up with this fantastic idea of fitting GPS to your car so they know exactly what you’ve been up to, where you’ve been and how fast you were going. Now, I know what you’re thinking, “big brother watching” but if you prove that you don’t drive far and don’t drive fast, then it can really make a difference to your insurance premiums. It also helps if you keep off the roads between around 11pm and 6am, which is when statistically most accidents happen.
  5. Drive less – this might not be an option for you, but when you take out your policy you will be asked how far you drive, whether you use your car for business, social commuting or whatever. The less miles you do the less chance you have of crashing into somebody else (or having them crash into you) so ultimately your policy costs should reduce.
  6. Reduce your extras – take a long hard look at your policy and see whether you really really need all of the things which you’re covered for. For an example, if you’re a two car family couldn’t you manage with just one for a day or two, without paying extra for courtesy car cover? Just a thought, you might have to sweet talk your partner and take extra turns at doing the dishes in return, but it could save you some money. And what about the medical part, if you already have medical insurance you might find that you’re doubling up on some things.

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