Eight little-known ways YOU can save on car insurance – from how you describe your job to best mileage to cut costs
INSURANCE experts have shared eight ways you can slash the cost of covering your car as prices linger around an all-time high.
There was relief for drivers as premiums fell for the first time in two years back in August, but the average cost of cover still tops £600 a year.
Millions could also access cheaper rates in the coming months after the industry introduced a new risk rating system.
Nonetheless, The latest data from the Association of British Insurers (ABI) suggests that the average driver pays £635 to insure their car.
That’s quite a hefty bill considering that you’re legally required to have it.
Some motorists are seeing their costs spiral into the thousands, with one young driver even being hit with a £5,000 policy.
Fortunately, specialists from Go.Compare are on hand to share some of their top tips with Sun readers on how to slash prices.
Tom Banks, a coverage expert for the site, told SunMotors: “When it comes to getting a great price on your car insurance, there are a number of things you can do to help lower your premium.
“The obvious one is using a comparison site online to compare all the deals available – but on top of this, we have some great tips you might not be aware of.”
Year by year
If you can afford to do so, paying annually for your insurance could represent significant savings.
Plenty of Brits are used to paying monthly subscriptions with the boom of services like Netflix.
But when you buy insurance, you buy it for the whole year so monthly payments effectively represent a loan of protection from your insurer until you can pay it off.
And, since it’s a loan, that means providers are allowed to charge interest, which could see you paying significantly more in the long run.
By paying annually, you shell out a larger lump sum on the day, but could save yourself hundreds over the course of the year.
Easy excess
Insurers set all their prices based on calculations of the risk that they might have to pay out.
But this is mitigated by voluntary excess payments – the amount drivers promise to cover themselves in the event of a claim.
By setting a higher excess, you reduce the amount your provider would lose if you were to get into a fender bender.
Tom explained: “You want to make sure that you will be able to afford to pay it should you need to make a claim
“But it’s worth bearing in mind that choosing a higher voluntary excess will usually bring your car insurance premium down.”
Stay secure
Car theft is rapidly becoming one of the biggest issues contributing to high insurance prices, with cases hitting all-time highs in 2023.
If you live in an area rated with a high risk of crime, you could see that reflected in your bills through no fault of your own.
But you can try and mitigate this by boosting the security on your motor to make it less appealing to crooks.
And insurers are likely to look kindly upon more secure vehicles when it comes to working out rates.
Only pay for cover you need
Tom Banks
Tom went on: “You could install alarms, immobilisers or locking wheel nuts.
“We recommend getting quotes on how much your insurance would cost before fitting any security upgrades though, so you can see whether they would be worthwhile in terms of the savings made.”
Proper parking
On a similar note, where you park your car is very important in reducing the risk of theft and damage and, therefore, lowering prices.
Tom urged: “If you have access to a garage or off-road parking, make sure to use this.
“Not only will parking off-road lower the chances of theft and vandalism, it may also lower your premium.”
Trading places
One thing you might not expect to make a major difference to your quote is what you do for work.
Tom explained: “Surprisingly, how you describe your job can also have an effect on your car insurance premium.
“For instance, a ‘cook’ might receive different car quotes to a ‘chef’.”
Indeed, I reduced my own premium by a whopping £5,000 just by tweaking my application.
Just make sure that the role you choose is still an accurate representation of what you do as lying can void your insurance and even see you prosecuted.
Eyes peeled
Whenever you negotiate an insurance contract, make sure to go through the fine print carefully and get an idea of what you’re actually paying for.
Tom added: “Only pay for the cover you need, and remove any unhelpful extras – such as legal assistance, for instance.
“You may even find that certain add-ons are cheaper when purchased separately – so this is worth checking.”
More can be less
Adding an extra driver onto your policy is another great way to save money, especially if they are more experienced than you.
In some cases, you could even share the benefit of their no-claims discount, further bringing down costs.
This is particularly useful for young drivers with parents who have been on the road for much longer than them.
Just make sure that this is an honest representation and that the person who drives the car most is named as the primary driver.
Adding a less experienced driver onto your policy when it’s actually for their car is called “fronting” and is a form of insurance fraud, which could see you hit with a fine and even jail time.
What is car insurance?
Consumer reporter Sam Walker talks you through what car insurance is and what it covers you for…
Car insurance pays out if your vehicle is stolen, damaged, catches on fire or is involved in an accident.
As a minimum, it protects you against any damage you case to other road users, the public or their property – these are called third parties.
You only need to claim on your car insurance when an accident is your fault.
If another motorist is to blame, their insurance should pay out instead.
Car insurance, unlike home insurance, is a legal requirement and if you don’t have it you can be fined up to £1,000.
You can also have your vehicle seized and destroyed.
However, you don’t need to insure your car if it is classed as “off-road”, or holds a statutory off road notification (SORN).
The vehicle has to be kept on private land and not a public highway though.
Mile munching
Finally, Tom advised drivers to pay close attention to their annual mileage, as this could shave a few quid off their final bill.
He recommended: “Many people default to saying they drive 10,000 miles a year – but do you really?
“While it’s important not to underestimate your mileage – as this can invalidate your insurance – you also want to be careful not to overestimate.
“Try adding up the distance of your commute and any regular journeys, as well as how far you’re likely to drive for days out and other trips, to help judge your annual mileage more accurately.”