To anyone with a driver’s licence, it’s undeniable that owning and running a car is becoming an increasingly expensive business, especially during a cost of living crisis.
From fuel to tax and repairs to ULEZ, there are a lot of costs involved with getting about, and with the potential for public transport strikes still on the cards, many of us will still rely on a car for transportation.
Unfortunately, analysis from Compare the Market has shown that the typical cost of car insurance is now £613 – this is up by £81 from last year.
So, Metro.co.uk has spoken to some car insurance experts for tips on how to cut your costs.
How to save money on car insurance
Car insurance experts at Uswitch also told Metro.co.uk: ‘Like most things, the cost of car insurance has increased over the past year.
‘This time it’s a follow on from the wider cost of living crisis, with garage bills going up for repairs thanks to higher energy bills and supply chain trouble making parts harder to come by.
‘All this means claims are costing insurance companies more, and that’s being passed on through higher quotes.’
Fortunately, there are still ways to cut down on the price of car insurance.
Shop around online
Comparing prices online is one of the most straightforward tools for reducing the cost of your car insurance.
Uswitch explained to Metro.co.uk: ‘Always make sure you compare car insurance deals from different providers to help you find the most competitive rates for you.’
Increase your voluntary excess
Your voluntary excess is the amount you pay towards a claim, and by increasing it, you can lower the cost of your premium.
However, it’s essential to make sure you can afford to pay your excess should you need to make a claim.
Uswitch said: ‘You can also lower your premium by choosing a larger excess – the amount of any claim you pay yourself – but remember that will cost you more in the event you do have an accident.’
Build up a no-claims discount
While this isn’t a short-term strategy, building up a no-claims discount rewards safe drivers who don’t make claims on their insurance.
In practice, this means the longer you go without making a claim, the higher your discount will be.
Pay annually
If you can afford to, paying for your insurance annually instead of monthly can save you money in the long run, as many insurers will offer a discount for anyone able to pay in one instalment.
The experts at Uswitch say: ‘Paying the policy annually could save you money, compared to paying in monthly instalments. If paying upfront is difficult, then alternative payment methods can help spread the cost over time, such as an interest-free purchase credit card.’
Pick a car with a low insurance group rating
If you are looking to purchase a new car soon, you can use this as an opportunity to lower your premiums.
By lowering the insurance group rating of the car, you buy, you can reduce your insurance premium. As such, it’s essential to check the rating before you buy.
Consider a policy using a black box
A ‘black box’ (sometimes known as a telematics) policy uses technology to evaluate your driving.
In return, your insurance company can offer lower premiums to safe drivers.
Avoid adding unnecessary additions
Some insurance policies come with additional extras like breakdown cover or protection for legal expenses.
Evaluate whether these have value to you and whether they are really needed, as these can add to the cost of your premium.
Uswitch adds: ‘You should also make sure you’re not paying for any unnecessary add-ons and your annual mileage is accurate, while also taking full advantage of any no-claims discount you have built up.’
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