Car Insurance Money Saving Tips

Top tips for cheaper car insurance:

If you have a garage use it

In return for keeping your car locked up securely overnight, many insurers will reward you with a discount as a large amount of vehicle crime happens at night where the vehicle is kept. Alternatively all isn’t lost if you don’t have a garage as keeping the car on the driveway is still deemed to be a safer alternative than parking it on the road.

Fit an alarm

most modern cars come with alarms as standard and some even include immobilisers, however if your car doesn’t already have one. Car alarms can be purchased from around £30 and easily installed, and as well as attracting a discount of 2-3% of the car insurance premium, an alarm also acts as a deterrent to any would be thieves and vandals.

Review your mileage

When buying car insurance, one question that is asked is how many miles do you drive a year. The likelihood is many people will take a guess at this figure, however it is worth taking 5 minutes consideration to be more accurate as the more mileage you do a year the greater chance there is of needing to make an accidental damage claim, so for example someone driving 8,000 miles a year will get a cheaper premium than someone driving 10,000. If you live near someone you work with you may want to consider car sharing as this not only will reduce your annual mileage but many companies are now providing staff with incentives to car share.

Take into account any change in your circumstances

Over the course of the year there maybe some changes to the reasons you need your car. As an example you may change jobs and no longer need your car for commuting, or may require business use, or may retire and no longer be driving as many miles. In addition your occupation may also change which can impact on the price of your policy.

Add an older parent or relative

Younger drivers may want to add an older parent or relative as a named driver to their policy in order to bring the cost of cover down further.

Increase your voluntary excess

Consider paying a higher voluntary discount in the event of a claim. For example by selecting £500 instead of £250, our research shows your premium could be reduced by as much as 10%. By opting to pay a higher amount yourself you’re sharing the risk with the insurer who can then in turn pass some of the savings back.

Look at what’s included in your policy premium

For example legal cover and motor breakdown are common features which can be added on for an extra fee. It maybe a case you have these covers already as standalone or as part of a packaged bank account, therefore check that you’re not duplicating cover

Consider taking additional driving qualifications

If you’re a new driver then insurance is expensive enough, however to ease the cost some insurers will give a reduction in premiums if you have the Pass Plus certificate.

2009-05-13 16:38:20 © Moneyextra.com