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Five ways to reduce the cost of car insurance

insurance Car insurance is one of the major motoring costs faced by people in the UK and knowing how to keep it low can save you a lot of money.

Here we look at five things you can consider to bring the cost of car insurance down.

1. Buy the right car

Buying a car that is in a low insurance group is one of the best places to start when looking to keep insurance costs down.

Some makes and models are vastly less expensive to insure than others. Cars often featured on low insurance cost lists include Fiat Panda, Kia ProCeed, Citroen C3 and the Nissan Note.

Insurers consider the value of the car, engine size and desirability of the vehicle to thieves when they come up with your quote.

Modifications can also drive up the cost of insurance so bear this in mind before buying one with modifications or making those yourself. This may include things like custom bodywork, exhaust upgrades and alloy wheels.

2. Compare quotes

Sticking with the same insurance provider and blindly accepting the renewal quote is one of the quickest ways to pay over the odds.

There are lots of ways to compare costs quickly and simply, including via an online comparison site.

It’s not just about comparing providers either. Try comparing different levels of cover too.

People sometimes assume that third party insurance or third party fire and theft is cheaper than fully comprehensive cover. Whilst that is a logical assumption, it is not always true.

3. Play around with your job description

Car insurance premiums can vary a lot based on the job the motorist has.

It’s important to always be honest and accurate with the job description you provide. If not you could be committing fraud and run the risk of invalidating your insurance as well as getting in trouble.

If you could use multiple titles to describe your role, though, an alternative may lead to a reduction in insurance costs.

For example, a personal assistant may also be able to describe themselves accurately as a secretary. An illustrator may feel they could equally be described as an artist. The two descriptions could return different premiums.

It’s worth checking if this could impact the quote for you.

4. Consider a telematics policy

Telematics or ‘black box’ insurance policies can substantially reduce the cost of car insurance.

Telematics policies include in-car technology that monitors how the car is driven to make premiums more specifically tailored to the risks posed by that driver and less generalised. They can monitor things like braking severity, speed, cornering and even the times of day a car is driven and distances travelled.

Telematics policies are often only associated with young drivers and they can certainly make a huge difference to the cost of insurance for them. They can sometimes be a money saver for older drivers too.

Some policies include restrictions on the times a car can be driven. A night-time curfew may be imposed, for example. That isn’t always the case though. Shop around for a policy that works for you.

5 Only buy the cover you need

Looking at the detail of a policy and considering if you need everything included is another way to reduce the cost.

Some policies are offered in a package with breakdown cover, for example. Removing this and buying it separately may be more cost-effective.

You can also look at the stated annual mileage. If you have a vehicle you only use occasionally, you could consider reducing the annual mileage stated and it might make the premiums cheaper. Be sure to declare a realistic amount of miles though and if things change and you’re driving the vehicle more, update your insurer to ensure your policy is not invalidated.

You may also consider reducing the excess – the amount you have to pay towards repairs if you make a claim. Setting this at a higher level can bring the overall premium down. Just be sure that you can afford to pay the excess if you do need to make a claim.

You can find out more about this via our article: ‘What you should include in your car insurance policy.’


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© by Louise Chapman 2021