5 Ways To Save On Your Car Insurance
Is your vehicle insurance up for renewal in the new year? If so, then it could be a prime place to make some extra savings for the year. Whether you have multiple cars in the family that need cover or you want van insurance at the best possible price, with a little research and a few tricks of the trade you can save big.
Keep Your Mileage Down
Even though sometimes using a vehicle is unavoidable, if you opt to go by foot, bike or bus where possible you could make savings on your insurance. If your annual mileage is lower, then you generally represent a lower risk for insurers and will usually be offered the same level of coverage for a lesser premium. Finding ways to reduce your annual mileage can pay off – but don’t be tempted to lie about it, as this would invalidate your insurance cover.
Make Your Payment Annually
When you choose to pay for your insurance cover in monthly instalments, you are effectively agreeing to a loan. And if you look in the small print, you’ll see the APR- or Annual Percentage Rate– attached to that. If you can pay in one lump sum you’ll be saving money. If that’s not possible there are other ways, such as using a 0% credit card to make the purchase – but you have to be sure that you can afford to completely repay the amount before the interest free period expires.
Up Your Excess
All car and van insurance policies involve a compulsory excess – an amount you have to pay on top if something happens and you make a claim. They also have a voluntary excess, where you can choose an amount on top. Selecting a higher voluntary excess amount will lower the total cost of your premium – but remember that if you make a claim, you’ll have to pay it out, so make sure it’s not more than you could afford to pay if you have a car accident.
Separate Out Your Add Ons
Some car insurance policies frequently come with add on cover items. These can include things such as legal help, a courtesy car, windscreen cover, protection for your no claims discount or cover for personal accidents. However, some of these things you may not need and others may be cheaper if you purchase them separately. Buying these items as separate products and only if required can reduce the amount that you pay on your insurance premium substantially.
Go For Black Box Insurance
If you are a careful driver, and especially if you’re part of a group generally considered as high-risk to insurance companies, such as first time drivers, it could be a great money saving idea to go for a black box insurance policy. This type of cover uses telematics – data collected on your driving habits via a box fitted to your car or via a smartphone app – to offer you lower priced cover. If you’re a careful driver, it can make you big savings – plus if your car ever gets stolen, the black box acts as a vehicle tracker.