Ten ways to save big bucks on car insurance
The historically high cost of gasoline and diesel and the rising price of new and used cars means people are looking to save money on autos. For most of us, driving a car is a necessity rather than a luxury, so limiting spending is becoming increasingly important as it eats up more of our salary.
There are ways to reduce the amount of money you spend to operate a vehicle. A personal finance comparison website says there are big potential savings to be made on insurance and has detailed the best ways to lower the cost of insurance.
Insurance is one of the main car-related expenses, especially for young people with little education who pay through the nose. With that in mind, Quotezone.co.uk offers 10 insurance-related tips that could help household finances go a little further:
- Parking vehicles in garages and even driveways can result in cheaper insurance than parking on the road. Typical savings can be as high as £140 for parking on a private driveway, as this is considered safer and less risky by insurers.
- It goes without saying that safer driving means cheaper premiums. But did you know how many penalty points can drive up insurance premiums? On average, three points can add 5% to premiums, but that goes up to 25% for 6 points and remember the increase is likely to influence premiums for 4 years until the breach is spent. So if a driver normally pays, say, £250 for an annual car insurance policy, with 6 penalty points up to an additional £62.50 per year, potentially for 4 years, that’s an extra £250. If drivers have points, it may be worth using a bespoke product such as convicted driver insurance, which can help them find the right insurance provider for their risk profile.
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- On that note, normally the larger the non-claims bonus, the lower the premium. And it’s not just car insurance, recent research shows motorcyclists can save big. It is therefore important not to accidentally break your series of consecutive loss-free years, for example by changing the car to the name of a partner. The driver must be the registered owner of the car and listed as the primary driver, for a period of consecutive years, for the bonus-malus to add up.
- If the driver has points on his license or very few bonus-malus, it may be worth considering a telematics insurance policy. This allows them to demonstrate their driving skills, giving insurers data on which to base their premium. If it is a safe driver, this will help reduce the premium.
- Modifications – branding, spoilers and alloy wheels – can help promote a business or make the car look good, but insurers consider them a higher risk, more likely to get stolen and more expensive. to be replaced, so premiums could be higher accordingly. Also, not declaring them accurately on the policy could void coverage.
- Size matters when it comes to engines – the less powerful the engine, the cheaper the insurance is likely to be. If drivers are looking for a new car, it’s wise to check which insurance group that make and model belongs to.
- Alarms and immobilizers usually come as standard, but adding security options such as a tracker or dash cam can sometimes help lower insurance premiums – and they can be purchased at lower cost.
- If you’re switching to an electric car, research government subsidies for home charging stations and see our data on what different cities pay for charging. Drivers might also discover that their city has indeed introduced charges for diesel and petrol cars, such as London, Birmingham and Manchester.
- Never let a policy automatically renew – even though new laws introduced in January 2022 mean insurers must offer all customers the same offers, not just incentives for new customers, it’s still a good idea to use a comparison site and compare prices.
- Mileage is important, check how many miles the car has driven in the previous year and be as specific as possible, the lower the mileage, often the lower the premium. However, make sure the estimate is as accurate as possible and notify the insurance company throughout the year of significant changes, as claims may be denied if the driver appears to be misleading the insurer.
Greg Wilson, Founder of Quotezone.co.uk, said: “Families are under more financial pressure than at any time in recent memory, but a few simple changes could help reduce unnecessary costs, particularly when it comes to cars.
“I think most people are looking for ways to save and they may not know some of these simple facts and tips that could lower their insurance premiums and in some cases save hundreds of pounds. per year.
“The cost of living crisis is unlikely to be resolved anytime soon, so it’s worth looking at household finances so people can find long-term adjustments and changes to their spending, to help cope. tighten the belt and protect themselves for the future.”
Quotezone.co.uk helps around 3 million users each year, with over 400 insurance brands across 60 different car insurance products as well as cover for bicycles, motorbikes and home insurance.