7 key ways to save money on your car insurance

Telematics insurance is a great way to save money on your car insurance because it lets your driving do the talking – not general statistics. However, there are some sure-fire ways to reduce your telematics premium. We have collated some things for young drivers to consider when buying and insuring their first car to make sure you get the most out of your money!

1.       Buy a lower value car
A high value car is a higher risk of theft, and also often costs more to repair in the case of an accident. This means that the insurance for a higher value car may sometimes be higher.  Look into how much different cars cost to insure before buying so you aren’t surprised by high insurance costs.

2.       Don’t modify your car
Most insurers won’t insure heavily modified cars at all, due to the replacement cost and risk of theft. If they do provide you with a quote, it won’t be cheap. Consider staying simple and saving yourself some extra money by not modifying your car. If your car has modifications that the insurer isn’t aware of, this could make your insurance invalid - so when buying your car, ask if it has any modifications.
3.       Think about how many miles you drive

The higher your annual mileage is, the higher your insurance premium will likely be. Make sure that you are accurate when entering your annual mileage, as if you go over this it can be a costly amendment to make. Also, try not to overestimate, so you don’t pay more than you need to.

4.       Consider increasing your voluntary excess
Having a higher voluntary excess means that the insurer will have to pay out slightly less in the event of a claim, which will reduce the risk of you making a claim. This will automatically make your premium lower – however, make sure you can afford the voluntary excess you set if you do have to make a claim.

5.       Add a more experienced driver to your policy
Adding a parent or older sibling who has more driving experience can sometimes decrease your premium – providing they don’t have any claims or convictions. This is a simple thing to do which could decrease your premium and, as long as you are the policyholder, you will carry on building up your no claims bonus!

6.       Stay safe and keep your car secure
Adding extra security devices such as an immobiliser to your car can reduce the risk of theft with some insurers. Reducing the risk of theft can help to lower your premium, as you’ll be less likely to make a claim for this.

7.       Go to price comparison websites
Price comparison websites are a great place to go to get a cheaper car insurance premium! However, do make sure that you have done your research about the company whose quote you are considering first to make sure that they are the one for you! Look at their website first and check you have everything you need to take up the policy. 

Photo by Fabian Blank on Unsplash
 

Posted on February 23, 2018


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