How to cut the cost of car insurance

1.  Compare deals

  • 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.

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.

To discuss your motor insurance and to obtain a competitive quotation, call Reader’s Digest Insurance Services today on: 0208 069 3102.