With the rising cost of living in the UK, many consumers are keeping regular tabs on their spending and looking for ways to cut costs where possible.
Considering this, experts from insurance broker One Sure Insurance have shared their five top tips for saving money on car insurance costs this year.
Buy car insurance in advance
If you are renewing your car insurance, it can often work out cheaper to buy it ahead of time, rather than waiting until the last minute to renew.
Insurance providers often consider people who buy ahead of time to be more organised and risk averse and see them as less likely to be involved in an accident, which means they are able to offer lower rates.
Your current provider will typically send you an email reminder a month before your car insurance is up for renewal, however the best deals will be available around three weeks before your renewal date. Insurance policies then tend to get more expensive, the closer it gets to your renewal date.
Try to avoid purchasing car insurance more than a month before the renewal date, as you can miss cheaper policies from insurers who aren’t willing to provide quotes that early.
Pay for your car insurance annually
When taking out a new insurance policy, paying for it with one annual payment rather than monthly payments can contribute towards cheaper car insurance.
This is because insurance providers charge interest on each instalment, so spreading your costs over the year can end up being more expensive overtime.
Some drivers may be unable to afford paying for their insurance in one go, therefore making monthly instalments more appealing. Just be aware of how much interest the insurance provider may charge.
It is always worth looking around to find an insurance policy that suits you best. Several insurance companies offer six-month payments or the option to “pay-as-you-go” for more flexibility.
Consider who to keep as a named driver
It is important to keep updating the list of named drivers attached to your car insurance policy as they may be affecting how much you pay with each instalment.
Adding younger, inexperienced drivers to your car insurance can increase costs because they are seen as more likely to be involved in an accident. Similarly, remember to remove anyone who is no longer driving your car to prevent the costs from their inclusion.
On the other hand, it can sometimes be beneficial to add a named driver to your policy if they are older and have more driving experience. This can result in cheaper car insurance for younger drivers, although you must be honest about who the main driver is.
Find the best way to describe your occupation
The job title you use when taking out insurance can sometimes affect how much you pay. Different terms can describe the same position, but one of them may be seen as less stable or secure.
For example, calling yourself a personal assistant can often result in cheaper insurance than calling yourself a secretary. The same applies when using the term “homemaker” instead of stating that you are unemployed, which can increase insurance costs significantly.
Explore different titles to describe your occupation by seeing what other people have used in your position and comparing the results. However, ensure that you are being honest about what you do to avoid any claims being seen as fraudulent.
Park your vehicle in a safe location
Some insurance providers consider the location where your car is parked overnight when calculating insurance costs. Parking outside your house on the street can be seen as increasing the risk of it being stolen or damaged, which increases how much you must pay.
The safest options to reduce the cost of your insurance are parking your car in a private driveway or in a dedicated car shelter. This ensures less exposure to outside factors that could damage it.
It is beneficial to see what different insurance providers prefer because some companies do not offer this reduction or may consider parking in a garage to be just as risky, due to potential damage when driving in and out.
