Car insurance is an unavoidable cost for drivers, but don’t end up paying more than you need to. No matter how long you’ve been on the road or what car you’re driving, there are ways to cut insurance costs. With these five tips, you can avoid overpaying for insurance and keep the cost of motoring as low as possible:
1. Change Provider
One of the quickest and easiest ways to reduce the cost of car insurance is to find a better provider. It’s tempting to let your policy auto-renew but this can mean you’re paying much more than you need to. With a simple comparison search on platforms such as CompareNI.com, you can find the best car insurance at the lowest price. This site is however specific to Northern Ireland, so just be sure to tailor your search to your region.
2. Increase Your Excess
All car insurance policies have a compulsory excess, which is the amount you’ll need to pay when you’re making a claim. However, most policies allow you to choose a voluntary excess too. By increasing your voluntary excess, you can reduce the cost of your premiums and pay less for your policy.
Remember – if you do have to make a claim, you will need to pay both the compulsory and voluntary excess, so make sure the combined total is realistic and affordable.
3. Limit Mileage
Did you know that virtually all car insurance policies have a maximum mileage limit? If not, there’s a good chance you’re paying more than you need for your insurance. By checking your own annual mileage and adjusting the policy accordingly, you could drastically reduce the cost of your premiums.
The average motorist drives 7,400 miles per year in the UK, but your policy could cover you for much more than this. When you reduce your mileage limit, you can customise your insurance policy so that it meets your needs and keeps costs low.
4. Improve Car Security
The more secure your vehicle is, the less your insurance is likely to cost. Although vehicle modifications can increase the cost of insurance, adding advanced security features to your car could actually reduce the cost of your insurance. A specialist alarm or tracker could be a viable way to access a cheaper policy, for example.
5. Get a Telematics Policy
When insurance companies can track your car usage via a telematics box in the vehicle, it can lower the cost of your premiums (providing you’re a careful driver!). Sometimes known as a ‘black box’, key usage metrics will automatically be sent to your insurance provider, which enables them to adjust your insurance policy accordingly. Now, you can even use a mobile phone app to record and submit key metrics, so having a telematics policy is easier than ever.
How Much Should You Pay for Insurance?
The cost of car insurance varies based on numerous factors, including your age, home address and the make and model of your vehicle. With average costs of around £580 per year for people aged 25-49, the cost of car insurance can account for a significant portion of your household budget. With these tips, however, you can modify your next policy, customise your cover and reduce your outgoings.