How to Save Money on Car Insurance This Year
Only get insurance for your class of use - Only use your car to visit family and friends and on social outings, get “social & domestic” insurance. Use it to get to work or to the train/bus station, get “social and commuting” insurance. Use it for business purposes, you will need business insurance. Commercial use of your vehicle suggest being on the roads longer, on busier and unfamiliar routes increasing risk to the insurer. Selecting the wrong class of use can invalidate your insurance in the event of a claim
Get a Blackbox – I know you hate them; however, they can save hundreds on policies. Telematic boxes that monitor your driving habits i.e. acceleration, braking, speeding, if you drive at statistically more dangerous times, mileage etc
Increase voluntary excess + Get excess cover – This can save you hundreds! We have a blog dedicated to this coming soon. In short, take out an excess cover policy to cover any excess payment and reduce risk to insurers by opting to pay more if you do claim, this combination can often work out cheaper than one single policy with low voluntary excess
Shop around - We have great tools and comparison sites that do this for us, however, some insurers not on comparison websites may offer cheaper quotes, the main two include Aviva and Direct line
Pick the right job title – If there are multiple ways of describing your job i.e. sales assistant & sales representative get quotes using the different titles, your job gives insights into your lifestyle and risk, changing the description but not lying can save money on your insurance
Drive less miles - Limiting your mileage can result in larger savings, it is important to be honest in your policy about the number of miles you expect to drive as excess mileage may invalidate claims
Check quotes on a desired vehicle pre-purchase - If the quotes are too expensive you may be better off purchasing an alternative car. Alternatively, get a different specification of your preferred vehicle i.e. smaller engine, non-sports line, cheaper infotainment package. The less powerful the car the reduced risk of accidents and the lower the value, the cheaper the cost to repair/insure.
If you have access to a secure car park or garage, use & state it! This reduces the risk of theft and damage.
Pay in full – This is not an option for all, however paying the full price of your premium rather than monthly instalments removes the interest throughout the year which amounts to hundreds in increased cost. A hack is to borrow the full amount on a 0% purchase credit card and repay the amount within the year, it’s just like getting an insurance premium but however without hundreds of pounds of interest.
Haggle! You are providing just as much value to a business as you are receiving. Sometimes good old fashioned negotiations is all it takes to save some money, you’d be surprised how much a sales representative “can do for you” with a little encouragement especially when you have cheaper quotes from competitors and have no contract or are approaching a renewal.
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