How to save money on Car Insurance

The cost of insuring your car is one of those bills that seems to increase each year, even when you’ve been fortunate enough not to have to file a claim. While it is not possible to legally drive without having at least some kind of insurance cover, there are some things you can do to save money on car insurance while staying within the boundaries of the law.

First of all, watch your excess. Do everything you can to raise the voluntary amount of excess you can take out on your policy. This will result in more payments on your end, but from the perspective of your insurer, you will be considered a smaller financial risk, which will lead to smaller premiums that you have to pay.

However, you should only raise your voluntary excess on your policy if you can save at least £150 from your current policy. If not, it is not necessarily a good idea to raise your excess. For example, if raising your excess would simply save you an insignificant amount, such as £10, then you would end up spending significantly more of your money if you ended up in an accident or in some other situation that required you to file a claim.

Second, look for extras in your insurance policies. There are a range of policies that will offer you extras including the use of a courtesy car or break down cover. If you have signed up for any of these extras in your existing policy, getting rid of them could save you significant amounts of money. For example, if you are considering adding or retaining a courtesy car cover, think about how often you would need one if you ran into an accident.

If you could use a spouse or a friend’s car or public transport for a short amount of time, it might not be worth paying more in monthly or annual premiums for a rarely used luxury. In general, the less you add to your insurance policy, the less money you will cost your insurer, which means you will see lower premiums whenever your bills come around.

Third, think about your mileage. Many insurance providers will ask you to provide an estimate of the number of miles you drive each year in order for them to assess your risk. Generally, the more you drive each year, the more you will pay in premiums. However, this does not give you license to deliberately misstate your annual mileage; you will want to list a number that is accurate as you can, as if you do not, your insurance might not be valid if you need to file a claim.

On the other end, don’t state you drive more miles than you actually do, as this will simply result in your spending more money on miles that you don’t drive. Be sure to update your insurance provider if you have some sort of permanent change in mileage, such as if you switch from a farther job to one that is nearer away, or if you move houses. Even a house move from one end of town to the other can have an effect on your insurance rates if it leads to a shorter commute. Keeping your insurance company up to date is a great way to keep your rates lower.