For sale: Your dream car. Comes complete with full service history and insurance costs that will take a big chunk out of your driving budget.
Insuring your car is an absolute necessity. But, if you’re not careful, it can be an expensive essential for getting behind the wheel of your new motor. Check out these tips to see how you can drive your annual premium down.
Choose the right car
First things first. Before you buy the car, see which of the insurance categories it falls into as this will have the greatest bearing on the price of your policy. Cars with smaller engines and greater security features cost considerably less to insure than those that are sporty, powerful and have been souped-up.
Shop around
This is the number one way to save on car insurance. Use an online comparison service to do the hard work for you, but make sure you’re comparing like-for-like. If something is too good to be true, it generally is, so double-check the small print before going ahead.
Limit the number of drivers
The more people named on the policy, the more it’s likely to cost. Only include the names of regular drivers. You can always add someone for a few days later on if you need too. Younger drivers in particular hike up the cost. If you are a younger driver, adding a more experienced driver to the policy could save you a few pounds.
Increase your voluntary excess
Agreeing to pay more for the cost of any accident repairs will bring down the price of an insurance premium. If you’re not at fault, the excess can always be claimed back later. Don’t be tempted to set the bar too high, however, especially if the car you are insuring is of low value.
Use the right job title
Elevating your position can cost you dearly! ‘Office managers’ for example pay more than ‘office administrators’. If possible, avoid using your car for work. Policies that cover ‘social, domestic and pleasure’ are cheaper. Be careful though – always reveal the full facts otherwise your cover may be invalid.
Drive less miles
Fewer miles mean less chance of an accident therefore a cheaper policy. Agreeing to an annual 12,000 mileage cap could get you a discount of between 5% and 10%. This is helpful in households with more than one car, where mileage can be shared. But, be honest and accurate to avoid jeopardising any claim.
Secure your car
Keeping your car in a garage or on a drive will lower your premium more than parking it on the road, as the risk of theft or being hit by another car is dramatically reduced.
Agree to a black box
This is a device installed by the insurance company which effectively monitors how good a driver you are. They’re not popular with everyone as some request certain curfews, such as when the car will not be used, but having one significantly lowers the cost of car insurance, particularly for young drivers.
Pay up-front
Paying your car insurance by monthly instalments helps to spread the cost but this convenience generally comes at a price, with high interest rates that will cost you more in the long run. Consider using a 0% interest credit card to pay up front if that’s an option.
Haggle!
Don’t be afraid to drive a hard bargain. Many companies will offer a good discount just because they’re keen to get your custom. Ask for an introductory discount. You may be eligible even if you don’t have a no-claims discount but have, for example, driven a company car. If you don’t ask, you don’t get!
It’s time to hit the road – happy driving (and saving).
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