Here are some handy tips to save the pounds:
1. Check your mileage
When taking out insurance, you will be asked to estimate your annual mileage. The costs will rise in incremental bands so the more miles you drive, the more you pay.
If you have changed your driving habits significantly – for example, if you are now working from home instead of driving to the office – tell your insurer as you may be able to reduce your premium. However, do allow for unexpected trips and be aware that deliberately underestimating your mileage could invalidate your insurance.
2. Park in a safe place
Car owners that make use of their garages, driveways or carports for overnight parking can make big savings on their car insurance. Recent figures show that motorists that park on driveways rather than on the road save over £140 on average every year. Car port owners can do even better, with savings coming in at £230 on average.
3. Avoid penalty points
Penalty points on your licence may not only result in a steep fine but will also bump up your insurance costs too. Drivers can expect premiums to rise by 5% for three points and 25% for six points if they’re starting from a clean licence. Insurers don’t like risk and see penalty points as a cause for concern, so premiums will increase and drivers will have to wait four years until the points are spent and the additional cost no longer applies. For those drivers with 6 points or more, which might be making motoring hard to pay for, specialist policies are available.
4. Consider switching to a smaller engine
Choosing a less powerful car could save money on your insurance premiums. From an insurer’s point of view, the more powerful the engine, the more likely the vehicle is to be driven faster, potentially leading to speeding and accidents. Bigger engines are also more likely to rack up bigger repair bills and be more attractive to thieves.
5. Keep modifications to a minimum
It comes as no surprise that adding a turbocharger or putting in more powerful brakes might cause insurance premiums to rise, but even seemingly innocuous changes such as adding branding to a vehicle can affect the cost. However, if you do make modifications, be sure to tell your insurer or it could make the policy invalid.
6. Consider a black box
Young drivers or those with many points might be able to get cheaper insurance by opting for a telematics policy, or black box insurance as it’s often known. The black box measures speed, acceleration and breaking and other criteria which can show insurers that individual motorists are safer drivers than their age, experience or driving records might suggest. However, some of these policies can be restrictive in terms of where and when you are allowed to drive so they might not be the right option for everyone.
7. Shop around for insurance
Car insurance is competitive and it’s always worth shopping around to get the best deals. Even a few minutes on an insurance comparison website could reveal significant savings and additional benefits.
