Follow our car insurance action plan
There are several steps you can take to lower the cost of car insurance specifically.
As well as shopping around for a cheaper quote at renewal, paying an annual premium and upping your excess to lower the quote, there are several other steps you can take to lower the cost of car insurance:
1. Think about security - Keeping your car as safe as possible will also lower your premium. So park it in a garage/driveway rather than on the street if at all possible. Fitting an approved alarm, immobiliser or tracking device could also knock around 5% off your bill.
2. Try third party, fire and theft - If you really can’t afford comprehensive cover, consider shifting down to the third party, fire and theft option. This may be a sensible swap if your car isn’t worth much.
Just make sure you understand exactly what this level of cover offers. Essentially, if your car is damaged by anything other than fire or theft, it won’t be covered; you’re not protecting your car - or yourself - against accidents that are your fault.
3. Protect your no-claims bonus - You’re likely to get a discount on your car insurance if you haven’t claimed on your policy for a year. This is your no-claims bonus - a sort of reward for driving carefully.
If you haven’t claimed for five years (four in the case of some policies) you can protect your no-claims bonus. Your premium will rise slightly if you do this.However, you’re likely to save money overall - because this protection allows you some (typically two) ‘free’ claims before you lose any of your bonus.
A substantial no-claims bonus could halve your yearly car insurance costs - so protection is definitely worth thinking about!
4. Pay as you drive - If you’re an infrequent driver, pay-as-you-drive car insurance could be the right choice for you. With this sort of package, your premiums are based on how often and at what time of day you drive. The less you drive, the less you pay.
Read How To Save Money On Your Car Insurance, to find out whether this sort of car cover could cut your costs.
5. Pass Plus - Another way to reduce your premiums is to get the Pass Plus training course under your belt. The government is designed to help new drivers become safer, more aware and more confident.
On the downside, completing the course usually costs £150-£200 (this will vary depending on where you live and the instructor or driving school you choose).
However, as a Pass Plus success story you could receive a huge discount (30% or even more) on your car insurance if your insurer supports the scheme.
6. Don’t pimp your ride! - Resist the urge to ‘pimp your ride’ with funky add-ons like a flash exhaust or an enormous spoiler. Modified cars usually cost more to insure - so keep it simple!
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