Car insurance costs are rocketing. Insurers have hiked the cost of a typical comprehensive policy by 14% to reflect rising levels of crime and an increase in fraudulent claims. That’s the biggest jump in premiums for 15 years, says the AA. So it’s more important than ever to get a good deal.
The most effective way to cut your insurance premium is to shop around. “You can save up to a third off insurance by phoning around or going on the web,” says Edmund King, AA president, in The Daily Telegraph. But don’t just use one price comparison website, as they each compare different insurers.
To get the best quote from the whole market you’ll need to check a few such sites. Start with sites such as Moneysupermarket.com, Comparethemarket.com, and Confused.com. Also worth trying is www.forcesdeal.com. It’s a new comparison site that gives 70% of its profits to charities helping military veterans and serving troops.
Next, given that the cost of your car insurance is based on a risk assessment, reduce the likelihood that you’ll need to make a claim. For example, there are some simple steps that will reduce the odds of your car being stolen.
Fit an immobiliser alarm
If your car isn’t already fitted with an approved alarm system or immobiliser, consider fitting one. And if you have a garage full of junk, clear it out.
Keep your car in a garage
A car that you leave in a garage is cheaper to insure than one you park on a driveway or at the side of the road.
Check your annual mileage
It’s also worth checking your MOT certificate for your annual mileage. The lower your declared mileage, the lower the premium. And if you won’t be driving your car abroad, make sure you don’t overpay for unnecessary cover.
Add a second driver
If you are a young driver, you may struggle to get affordable cover. But you could consider adding a parent or older person – with a clean licence and no insurance claims – as an additional driver on your policy. An insurer will presume this means that your car is sometimes driven by the more experienced driver and will reflect this in your premium. However, never list someone more experienced than yourself as the main driver if they are not the main driver of the car. This is known as ‘fronting’ and will invalidate your policy.
Pay in one lump sum
Lastly, think carefully about how you are going to pay for your insurance. Some insurers will charge interest if you opt to spread your payments over the year. So pay in one lump sum up front if you can afford to. Or defer the day you have to find the cash by paying with a 0% purchase credit card.