Car insurance too expensive? Learn how you can save money


If your current car insurance plan is crippling your bank balance, here are a few expert tips that may help you reduce your monthly costs.

Choose a no-frills plan

Adding certain extras to your insurance plan is usually unnecessary, and they can bump up the price of your plan. These can include anything from windscreen cover, courtesy cars and legal expenses and although some insurance companies will advertise these as essential, you could save a lot of money without them. In short, avoid add-ons unless you know their value.

Increase your excess

When setting up your car insurance plan, opting for a higher excess will reduce your premium. Generally, the higher your excess is, the lower your premium is, and you can use online car insurance comparison tools to help you work out what yours will be and how much you could lower your annual car insurance costs. One thing to bear in mind, however, is that you must be able to afford your voluntary excess; if you need to make an insurance claim, you will need to pay this before your insurer pays you.

Consider the distance you drive

More often than not, customers looking to buy car insurance will overestimate their annual mileage cap. Before insuring, try and gauge the distance you drive as correctly as possible. This is especially useful for families with more than one car, one of which racks up more mileage than the other.

Don’t pay by direct debit

Although spreading the cost of your car insurance over a certain period may feel like the best way to go, this can often cost you more in the long run as many companies tend to charge interest rates for customers who choose to pay monthly. Consider paying for your premium in one go, or if this is not financially viable for you, you could open a 0% purchase credit card but remember to make sure the balance is cleared before the period ends.

Compare insurance plans online

Spending the right amount of time comparing car insurance prices online is one of the best ways to ensure you’ve got a good deal. Insurance companies often reserve their cheapest deals for new customers rather than offering them to existing customers meaning that you’re in a perfect position if you’re looking to switch insurers.

Being loyal is expensive

Auto-renewing your car insurance with the same provider is more expensive than switching. This is because insurers are aware that policyholders will simply forget about their renewal and therefore be with them for another year. As soon as you’ve started a new plan, make a note of the forthcoming renewal date so that you will know in plenty of time when to start looking for a cheaper plan. Search on comparison sites or even ring your current insurer to see if they can beat, or match, a good deal.

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