How to cut the cost of car insurance
BY READERS DIGEST
1st Jan 2015 Insurance & Legal
The cost of car insurance has risen sharply in the last few years, driving a number of motorists off the roads. So for everyone, here are a few ways to cut the cost.
1. Compare deals
- The best way to make sure you get the best deal is by shopping around. Comparison websites can search hundreds of providers and display a table of results allowing you to see who offers the best rate.
- In fact, you should see your renewal notice from your current insurer as a challenge. How much cheaper can you get your insurance? Start with your current provider. Get the best deal from insurancenavy.com, and then go onto 1 or 2 comparison sites and see how much more you can shave off.
- All you need to do is enter details you would usually give an insurer—such as model and make, registration, annual mileage and information about where the vehicle is parked. The comparison site will then offer a range of providers’ prices.
- Remember, though, that not all insurers are listed on comparison websites—so it’s still worth picking up the phone and giving a couple of extra ones a call.
2. Pay in full
- Car insurance bills are hard to swallow in one payment, but it works out significantly cheaper in the long run if you can make a one-off payment. Paying a monthly premium will include some interest and only adds to the cost of your insurance.
3. Telematics
- Insurers love well-behaved drivers —and what better way to prove you’re safe than by opting for pay-as-you-drive insurance? Telematics, or the “black box”, monitors your driving habits—such as braking, acceleration and cornering—and so provides a personalised record of your driving. The black box is fitted in your car and tracks your vehicle’s movements through GPS systems. It then feeds back information to your insurers, who base the premiums on your driving ability. There might be some conditions to the policy, such as limited driving times.—and what better way to prove you’re safe than by opting for pay-as-you-drive insurance? Telematics, or the “black box”, monitors your driving habits—such as braking, acceleration and cornering—and so provides a personalised record of your driving. The black box is fitted in your car and tracks your vehicle’s movements through GPS systems. It then feeds back information to your insurers, who base the premiums on your driving ability. There might be some conditions to the policy, such as limited driving times.
4. Smaller, greener, cheaper
- The size, age, value and make of a car all contribute to the cost of insurance. Eco-friendly cars come with a number of benefits and specialist green car insurance providers offer cheap deals for low-emission cars. Fuel guzzlers and high-performance models typically fall into the higher car insurance groups.
5. Multi-car
- If a household has more than one car, insurers will, more often than not, offer a discount for multiple cars. For example, Admiral’s Multi Car insurance combines cars on one policy, with each car eligible for its own discount. Vehicles can also be registered at separate addresses.
Motor vehicle accidents can have devastating consequences, both physically and financially. That's why having insurance for your vehicle is crucial. In the event of an accident, insurance can help cover the costs of damages and injuries, providing peace of mind for you and your loved ones.
To discuss your motor insurance and to obtain a competitive quotation, call Reader’s Digest Insurance Services today on: 0208 069 3102.
