How to cut your car insurance costs

By MoneyhighStreet Staff. Published on April 7, 2008 This post currently has no comments.

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There is a very good chance that at this very moment you are paying too much for your car insurance. There is an even better chance that you could get a better rate, from another insurance company, than you could from your existing insurer.

The fact is that the Internet has created increasing competition between car insurance companies with everyone from supermarkets like Asda or try looking for used cars at fish4cars entering the market. One of the easiest ways to find a cheap deal online is to visit one of the many online comparison sites such as moneysupermarket who will present different policies side-by-side, making it far easier to choose than having to ring up individual providers.

There are numerous steps you can take that may impact on the cost of your policy. Here are some of them:

Mileage

Many insurers' policies are based partly on an estimate of annual mileage.

Many people consider around 8,000 miles to be the average annual mileage, but actually we often travel fewer. Keep track of your mileage and you may find you're able to reduce the figure you give your insurers, which may save you cash.

Driving Qualifications

Insurers always like to have additional proof that you are a competent driver. If you're a new driver looking to get your first car and car insurance consider taking Pass Plus in order to reduce your premiums. Only obtainable within the first year of passing your practical driving test extra lessons, the Pass Plus scheme can cut motor insurance premiums by as much as 20% (down from 30% a few years ago) for first-year drivers who have taken the course.

Motorists who pass an 'advanced driver' course can also see their premiums reduced. Think seriously about it: one single course fee could cut your future car insurance bills for years to come.

Marriage

Married men attract lower premiums than single men. Insurers have found that if you're married you're more responsible. They've also found that if you're both named drivers you're even more responsible, so even if your spouse doesn't intend to use the car, get two types of car insurance quote: one for you, and one for both of you.

Homeowners

Like married men, homeowners often attract better premiums on their car insurance as they are considered more responsible. Be sure to update your car insurance if you buy a property.

Another potential source of savings is to insure your vehicles with the same company that insures your house. This can lower payments on your car insurance and make your homeowner's policy cheaper too.

Avoid monthly premiums

Many insurance companies offer you the opportunity to pay monthly, rather than upfront via a lump sum. Attractive as this might sound this can prove extremely expensive. Insurance companies often charge APRs of between 13% and 30% for these monthly arrangements. Best to pay upfront or on a 0% credit card.

Consider who to put as the main insured driver

Putting more drivers on your policy can actually reduce it. If you share a car with your partner who has less penalty points than you and use them as the main named driver for example you could cut your insurance bill. Consider getting insurance quotes with and without extra drivers who live at your address if the extra drivers have good records and their own cars as well.

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