Money saving tips to reduce your car insurance costs

In the current economic climate, with fluctuating fuel prices, congestion charges and increasing car insurance premiums partly due to the increase in personal injury claims, UK motorists are looking for even more ways to save on their car insurance.

Tips and hints to slash premiums

Shop around online: Buying your insurance online reduces your insurance company’s overheads and as such most providers will offer a discount of between 5% and 10% to reflect this. The quickest way to search for car insurance online is to use a comparison website which will compare car insurance quotes from as many as 100 insurance companies. This will also let you compare the policy features so that you are sure you are getting the right policy for you.

Choose your car carefully: To reduce your insurance risk you could choose a vehicle with a small engine, conventional parts and a low insurance group.

Cut out unnecessary extras: Make sure you are not paying for extras that you do not need. For example, if you have access to another vehicle do you really need to have a courtesy car?

Increase security: By fitting additional security features such as car alarms, immobilizers and tracking devices your car will become less attractive to thieves, thus lowering your risk. To further reduce your premium, park your car in a locked garage away from prying eyes.

Increase your voluntary excess: The higher your voluntary excess, the lower your premium will be. However only increase it to a level you can afford, just in case you need to make a claim.

Drive carefully: No claims discounts can equate to as much as a 70% discount for five years worth of claim free driving, while some insurers will increase premiums by 74% if you have more than one speeding conviction on your record, whilst one conviction for using a mobile phone while driving could hit your premiums by as much as 54%.

Limit your mileage: If you are not on the road there is much less chance of damage to your vehicle making you less of a risk to insurance companies.

Pay annually: If you can afford to, buy your car insurance outright as this will avoid interest charges.

Some thoughts on car insurance providers

Most car insurance providers claim to be the best and there are specialists that target specific groups – such as classic car drivers and women drivers – with unique policy options. The key for consumers is to compare car insurance policies online and always review your options at renewal time.