Whilst there is a general trend for insurance costs dropping at the moment, vehicle insurance still remains a huge cost for motorists, with the average annual cost being around £750. This rises to a massive £1,800 for drivers aged between 17-22. Here are some easy to follow tips for helping to reduce your premium
1. Add another driver to the policy
Incredibly, you can reduce your costs just by adding another driver to your policy – regardless of their age. One case study we came across outlined how a 29 year old male had reduced his premium by adding his 26 year old girlfriend to his policy, even though she had held her licence for fewer years. In this instance it transpired that the woman was a teacher, which statistically is considered a safer bet than her partners profession of journalism, and as a result the cost went down. Definitely worth getting a quote drawn up to see if you can save.
2.Get a camper van!
OK, so perhaps this isn't everyone's dream, but we know of at least on person who was forced into this after insurance for his regular car increased dramatically in the wake of two thefts. You'd think other cars might be a better option, but apparently not with this case study. After being quoted £1,500 annual cover with a £3,000 excess fee for his Citroen car, this particular motorist was able to get fully comprehensive cover for a camper van for around £500.
3.Buy a Classic car
Classic cars are thought to be looked after better than regular cars and as a result insurers will give you a better deal on insurance. Different insurers have their own definitions as to what's deemed 'classic', but in some instances it can be as little as 10 years old. Mileage per annum is normally set at around 5,000 miles, and you will likely need a garage to store it in, but you can save up to about 75% in insurance costs.
4.Park On the Street
Unbelievably it could be cheaper for you to park on the street, rather than a driveway or garage. This all comes down to claims history within your area – if the area has a lot of claims for garage of driveway incidents, the price for street parking will be lower. Insurers explain this as thieves being more likely to steal a car if they can be sure which house it's associated with.
5.Ignore Comparison Sites
Comparison sites are a great way to get an overview of the market, but you can actually save by looking for insurers that aren't listed on such sites. This is mainly due to the supplier not having a cost attached for being listed on the comparison site, and can therefore offer a more competitive deal. This will obviously take a bit more effort to shop around, but you can save around 10%.
6.Ignore Small Claims
Even if an accident wasn't your fault, it's worth considering paying for any damage yourself. You'll need to weigh up the cost of repair, against any excess fee due as well the increase in premium for making the claim, to gauge if it's the best option for you. Car insurance is a legal requirement, so keeping its costs as low as possible in the long term is the main aim, and covering the costs yourself with keep your claims history clear. If you do do this, you will need to inform your insurer of any collisions to avoid being denied insurance in the future, but it is only for information purposes and will not affect your insurance cost.
Sales people at insurance companies are normally allowed to discount a certain percentage to close a sale. Get yourself a range of online quotes, then simply call up your chosen provider and ask them to better the best deal you could find
If you can afford it, paying annually will save you further money. Paying monthly by direct debit is technically classed as a loan and as such you'll have to pay a little more for the privilege of being lent the money.
9.Vocation, Vocation, Vocation
As mentioned above, your job can have a big influence on your premium. As a result you should look to be precise when defining your job with your supplier. It may be surprising but even small differences in the semantics can make a difference. For example with one insurer a restaurateur would pay £800 a year, whereas a cafe owner would pay only £707
10.Choose Fully Comprehensive
You can actually get fully comprehensive cover cheaper than 3rd party, in some instances. This seems to be due to a couple of reasons. First of all it's affordable for young drivers who are statistically a bigger risk, and as a result fewer providers offer it now, preferring to have the custom of less 'risky' drivers. The other reason is that 3rd party customers tend not to bother informing their insurance company when they have a collision, and quite simply; insurance companies don't like surprises!