For the average driver, the high cost of insurance makes driving anything but the pleasure it should be. Most people go out buy a car, pay the taxes and fill out the necessary paperwork only to dread making that one call to the insurance company.
Average premiums can run into the thousands. This is especially true for younger, less experienced drivers, and most people will never have to make a claim.
Under UK law, it’s a requirement to insure your car, however, there’s nothing that says you have to pay top dollar!
Your Correct JobTitle
Studies have shown using the correct job title on your policy is one of the top ways to save a lot of money. Some typical examples include a mechanic over an engineer or a writer as opposed to an editor, so consider your job title carefully.
However, this isn’t an open invitation to lie on your policy, there’s no connection between being a DJ and teacher!
Use Comparison SItes
There are hundreds of insurance providers available to offer you a policy. It would be impossible to get in touch with the majority of them.
The better option is to use an online comparison site such as mustard.co.uk, which will provide you with the rates of various insurers, helping you to make a more informed decision.
Increase The Excess(Premium)
The amount of excess on your insurance is the amount that will need to be paid if you file a claim. A policy with a lower excess will be more pricey, while those with a higher excess tend to be less expensive.
You must decide how much you can afford to pay in the event you need to make a claim, don’t state an excess that will be beyond your means.
Avoid Monthly Fees
It’s best if you pay your policy in full up front. This will be a much cheaper option and will save you a considerable sum of money.
If you’re unable to come up with the full premium, consider shopping around for an affordable loan or talk to a family member for a short-term loan.
One of the biggest myths in the insurance world is the fact third-party insurance is cheaper than comprehensive coverage. Look at various quotes and see which one would actually be cheaper for you.
Our recommendation is to go with comprehensive insurance, this is especially true if it is cheaper
Tell The Truth
In many cases, a lie can dismiss your policy altogether or cost you more when you pay the premium.
Many people believe a great way to save money is by saying their car is parked in the driveway thus reducing risk. However, many insurance companies will charge less if the car is actually kept further from the home!
The reasons for this is simple, most thieves will break into a home and take the car keys as they leave and simply drive away with everything. When the vehicle is parked further from the house, it’s harder for a thief to find.
Experienced Drivers On The Policy
This is an especially good tip for younger drivers. Adding a parent to a policy as an additional driver is one of the best ways to cut hundreds of dollars off of a policy as it reduces the risk.
It’s important not to add anyone who will probably never drive the car. Also never identify the more experienced driver as the primary driver.
While it would lower the cost, it’s illegal and can land you in serious trouble.
Shop Around During Renewal TIme
It’s never wise to auto-renew your policy. Take the time to compare policy prices before your insurance runs out, even if you’re considering the same provider.
It’s interesting to see you may get charged hundreds of pounds more as an existing customer as opposed to a new one. So, it’s important to compare and save.
Lose The Extras
Look at some of the additions on your policy and consider if they’re truly worth it. DO you have to have windscreen coverage or the legal expenses add-on?
All of these extras do one thing – add to the cost of your premium and you will more than likely never use them once.
Does anyone have additional tips to save money on insurance?
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