Top 10 tips to save on your motor insurance costs
Get the right level of cover – Fully comp or Third Party?
It used to be that third party fire and theft cover was always cheaper, but in recent years insurers have been happy to provide lower premiums for fully comprehensive as customers with fully comp cover seem to be a better risk and less likely to claim. So get more for less by getting quotes for fully comprehensive cover as well as TPFT.
Don’t leave it until the last minute – you will end up paying more!
Searching around for a new deal or switching car insurance 2-3 weeks before your due date results in average savings of £280.00 according to price comparison site comparethemarket.com The closer to the date you need cover to start before seeking out quotes results in the comparison sites and insurers dishing out more expensive quotes. Make sure you get your quotes in early. Many sites and insurers will guarantee the quote for 30 days.
Make sure you do compare and switch – never just let a policy auto renew.
There is no reward for being a loyal customer, not with insurers anyway. As you are already experiencing, new customers get all the best deals. The insurers rely on snagging you as a new customer with an inviting deal and then hoping you are too lazy to shop around at renewal time, by which time the premium will have increased and you end up locked in for another year.
Add another experienced driver on to the policy as a named driver
Adding a parent or other experienced driver onto your policy as a named driver can often lower premiums substantially, especially for younger drivers.
Pay up front – instalments = interest charged on top of your premium
Although it is easy to say, considering motor insurance costs for some people can be a big ticket purchase, if you can afford to take the hit all at once, consider paying your full premium in one hit rather than monthly. When you opt to pay by instalments you often find that the instalments are financed by a separate financial agreement, where interest is added and this typically adds another £60 to the total cost of the average premium.
Do you need all the extras?
Trimming back on some of the more common place “add-ons” like excess protection, guaranteed courtesy car cover can reduce premiums substantially. Also a cause close to our hearts is the added motor legal protection cover. This is typically £30 a year per vehicle. So a household with several cars could be buying this additional cover several times over. A free alternative can be found for motorists in England, Scotland & Wales., saving £30 per vehicle a year.
Set your excess higher to reduce the premium
An excess is the amount you agree to contribute towards the cost of a claim you make. So by increasing your excess amount, you are going to cost your insurer less in the event of a claim, but don’t get carried away. If you set your excess very high, such as over £1000.00, you could find yourself not being able to afford to pay for repairs to your vehicle after a collision.
Cashback deals
Price comparison sites and other introducers get commission payments from insurers when you take out cover through them. So instead try some of the sites like www.quidco.com and www.topcashback.co.uk to see what cashback deals you can get. Make you search for some quotes via the usual price comparison sites first so that you know what the typical premium before cashback is.
Job titles make a difference
As strange as it sounds, the title or terminology you use can make a difference. You have to be honest though. So no point saying you are the chief executive of a multi-national company if you really work as a part time cleaner. But examples can be calling yourself “kitchen staff” when you work as a chef. The lovely people at moneysavinexpert.com have developed a tool to suggest job title changes which may lower your premium.
Haggle!
Yep indeed, it costs nothing to ask for some discount and often there is some “wiggle room” to be had, resulting in a lower premium.