We are paying more than ever to insure our vehicles. A BBC report analysing 28 million policies found the average premium in the three months to the end of June was £511, a 21% increase on the same time last year. Insurers have accredited the increase to inflation and a huge rise in vehicle repair costs.
In the first quarter of 2023, the insurance industry paid out £2.4bn in all motor insurance claims – covering theft, repairs and personal injury. This is up 14% from the same time last year.
How to get cheaper car insurance
Keep in mind that insurance rates can vary based on individual circumstances, driving history and the insurance company’s policies. Here are some ways to potentially lower your vehicle insurance costs:
Plan Ahead
It is said that the cheapest time to get your quotes is 23 days before your renewal date. The closer it gets the more expensive your quotes.
Shop Around
Get insurance quotes form multiple insurance providers to compare prices and coverage options. Use comparison websites to improve your chances of getting the cheapest deal.
Increase Voluntary excess
Consider increasing your voluntary excess (the amount you are willing to pay out of pocket in the event of a claim). A higher excess usually leads to lower premium costs.
Build a No-Claims Discount
Maintaining a good driving record over time accumulates a no-claim discount, which can significantly lower your premium. Your insurance provider could offer a discount of 30% on your premiums if you can prove you’ve been claim free for a year. But that could rise to a maximum of as much as 65% or even 70% if you’ve been claim free for five or more years.
Try haggling a discount
If you don’t want to try a new provider try negotiating directly with your current one.
Review your mileage
Take a look at your average annual mileage and ensure your policy meets your needs. Lower mileage often results in lower premiums.
Add a named driver
Adding a responsible and experienced driver to your policy, like a parent, can sometimes reduce the premium especially for young or inexperienced drivers.
Pay annually
If financially feasible pay your premium in one annual instalment rather than monthly as insurers may offer a discount for upfront payments.
Telematics or Black Box
Consider a policy that uses a telematics device (black box) that monitors your driving behaviour. Safe driving habits could lead to a discount on your premium.
Bundle Policies
If you have multiple insurance needs e.g. home and car, consider bundling them with one insurer to potentially receive a discount.
Remember to be honest and accurate when providing information to insurers, as providing false information could lead to the policy being voided. Always read the policy terms and conditions carefully to understand the coverage.