In the last year, leading motoring authorities such as the AA and some of the largest car insurance providers have estimated that insurance premiums have risen by an average of 37% for many drivers. This exceptional hike in premiums has been credited to everything from cash for crash fraudsters to ‘adjustments’ by the insurance industry to make up for years of steady prices. Whatever the reason, an extra 37% on your annual car insurance bill is enough to send any sane driver scuttling for the nearest price comparison site to sniff out a bargain.
However, if you’re looking for cheaper car insurance then there are a few other things that you can consider that will help keep the cost of your insurance premiums down.
Eco-friendly motoring equals wallet-friendly insurance:
If you’re planning to replace your old banger with a shiny new car, choosing a more economical model could have a big impact on both your insurance and your road tax costs. But that doesn’t necessarily mean downgrading from a BMW to a Fiesta. Hybrids are becoming more affordable for the average motorist and insurance companies, particularly those with a pro-active environmental bent will reward eco-friendly motorists with wallet-friendly car insurance.
Using the car less:
The government is encouraging us all to leave the car at home more and get out on bicycles, public transport or even Shanks’s Pony. Insurance policies that have an annual limited mileage on them can be considerably cheaper, but it does mean planning your journeys more carefully. If you’re already a low-mileage car user, consider switching to a policy that caters for your annual motoring needs (but don’t forget to factor in a few hundred miles annually on top of your estimated yearly mileage just in case of emergencies).
Modifications can add a big wedge to your insurance. Tricked up, your car is worth more and consequently will cost you much more to insure. If you’re turbo-charging a standard Sierra just to get a few more horses under the bonnet, consider if you’ll ever get the chance to unleash them in the real world, or just what kind of damage a set of top-end alloys could do to your wallet.
Where did I leave the car?:
Garaged or parked on the road? If your car is out in the open, the chances of it being stolen rise considerably. Keeping the car locked up in a garage means a reduction on the premiums and less chance of it disappearing. Adding a good security system and anti-theft markings can also keep the cost of your car insurance down.
Fire up the computer…:
Online comparison sites are booming. They’ve given back consumers power over how much they pay for everything from utilities through to car insurance, as well as making searching through hundreds of providers much simpler. Instead of having to endlessly repeat your details to dozens of call centres, you simply type in your details once and immediately you’ll get a list of insurance providers all offering you some great deals. So when your renewal date looms, fire up the computer and see what other providers are offering.
Watch out for hidden extras:
Car insurance doesn’t just mean insuring your car these days. It can include everything from windscreen cover and breakdown recovery services through to legal costs. But while it may be tempting to click on all those extras, every single one will push up the cost of your insurance premiums. Consider carefully what you really need, how much excess you’re willing to pay and what’s a hidden extra that you don’t want or need on your policy.
Play it smart and you can end up paying less for your car insurance and not get hit with that 37% price hike this year.
Guest post by Amish Mehta