12 Top Tips How to Lower Car Insurance Costs

Choosing to drive a model and make of car in a Lower insurance group is the easiest way to reduce your car insurance.

Every car driven in the UK is given an insurance group number from 1 to 50 depending on price, style and performance.

Unless you think you can afford to replace your car if it was a write-off in an accident, Fully Comprehensive insurance coverage is best for you.

Are you driving an old car that’s not worth much? The third-party cover might be suitable.

Always check the price of both options. You’d be surprised how often Fully Comp is the cheapest.

Don’t forget to keep evidence of any No Claims Bonus and ensure you can carry it over when changing insurers.

You can pay your insurer an additional premium to protect your NCB check to see if the extra costs will make it worthwhile.

All insurance policies have a compulsory excess, which you must pay for any claim before the insurance kicks in.

You can add a “Voluntary” Excess to the insurance policy, which can significantly reduce your insurance premium.

Before deciding on any Voluntary excess, be sure you can afford to pay in the event of an accident that is your fault.

The safer the car, the lower the risk:

• If your vehicle has an immobiliser or alarm, this can help lower your insurance premium.
• Park your car somewhere safe overnight, such as in a garage or driveway. Insurers prefer you to park off the road.

Insurers like low-risk drivers and will reward them with lower insurance premiums, proving you are a safe driver:

• Take a Pass Plus or an advanced driving course.
• Avoid penalty points on your licence.
• An insurance claim will affect your NCB and push up the cost of your insurance.
• If you take out a telematics (black box) insurance policy which will assess your driving, this can lead to a lower premium.

Many young drivers like to modify their cars for performance and appearance. It looks good and may even increase the car’s value.

But insurers don’t like non-factory add-ons such as alloy wheels and body kits and are likely to penalise you with a higher premium.

The Pass Plus is a driving scheme run by DVLA providing about six hours of tuition after passing the driving test.

The Pass Plus driving course will give you experience with things you have not encountered in your lessons, such as driving on motorways and at night.

Many insurers will offer lower car insurance to new drivers who have completed the Pass Plus course.

Be precise when giving your annual mileage; the lower the distance you drive, the less your insurance premium.

Be careful not to underestimate the miles you drive in extreme circumstances; this could affect a claim.

Adding an experienced named driver is another way to lower your car insurance.

However, beware of “Fronting” – a term used by the insurance companies to describe when somebody claims to be the Main driver on a car insurance policy when they are not.

When shopping around, return to your current insurer and ask them to beat your best quote.

There is no harm in asking the insurer for a small discount, and they might “say no”, but you may be surprised.

Sometimes insurers provide car breakdown cover with the policy. This is not the best price and level of Cover available.

Check out the breakdown services. They should give you a better deal.