How to Save Money on Car Insurance

The credit crunch has taken its toll on all aspects of motoring with costs increasing and more drivers struggling to make ends meet. However, what is perhaps most surprising is that many of the nation’s motorists are willing to ditch their vehicles altogether in favor of those with two wheels.

According to a survey by the Post Office, 4.8million drivers in the UK would be happy to switch to a motorbike or moped if it meant making cost savings. Indeed while the car industry continues to decline there has been a year on year increase in moped registrations. However, drivers who are reluctant to take up driving with two wheels shouldn’t despair because there are ways to drive down costs such as car insurance.

Why car insurance premiums are easy to cut

Many drivers make the mistake of assuming that car insurance premiums should just be accepted. They perhaps make the effort to shop around when they initially take insurance out but then just accept the renewal quote every year, regardless of whether or not the premium is consistently rising.

It’s this blasé attitude towards rising premiums that insurers thrive on. The vast majority of the major car insurance providers offer their best deals to new customers in a bid to attract business. They then ramp up the cost year on year to their existing customers, proving that loyalty does not pay off.

Even if you have a no-claims discount you shouldn’t assume that you can’t find a better deal elsewhere. What’s important to note is that no-claims discounts are separate from car insurance premiums. This means that your renewal can still increase regardless of how good your driving record is if your insurer feels there are other reasons to up its prices. These reasons may not even relate to you – they could instead relate to factors such as a rising number of claims, increasing repair costs and so on.

Yet because insurers offer their best deals to new customers it’s actually straightforward to find better deals. All you need to do is shop around online and you can find a host of discounts available.

In fact, the process has been made all the easier by the growth of comparison websites. They offer an effective one stop shop where you can compare dozens of policies from different insurers with one search - selecting the deal that’s right for you based on price and policy options. These websites don’t cost any additional cash to use - but they do help you find the best deal far quicker than by trawling from website to website. Indeed the leading comparison websites can actually compare policies from more than 100 insurers.

Other ways to save on car insurance

Finding the best deal is actually only the first step to achieving car insurance savings - there are a number of other ways to save that don’t even involve moving to another provider.

For example, security is a big issue with most providers. If you can enhance your vehicle’s security by fitting improved door and window locks, a car alarm, an immobilizer and a tracking device you should save a significant amount each year. Of course these devices are not cheap and you should always consult your insurer beforehand to find out which devices earn the biggest discounts – some cheap alarms may not be recognized by insurers.

You don’t have to spend money to save money, however. Another way of cutting premiums is to park in a garage at night – this also keeps your vehicle more secure and earns a discount typically in the region of five per cent.

From there, look at your own driving. A no-claims discount can keep your premiums manageable so try and steer clear of accidents and convictions. Also see if you can agree to a mileage limit if you don’t drive too often.

Take a close look at your policy too as you may be paying for cover you don’t need. For example, think about how you use the car – if you just use it for errands then make sure you are only paying for the "social, domestic and pleasure" use of a vehicle and not for other uses such as commuting and business use. Also see if there are any policy options you could do without. You may not need breakdown cover for example if you already have an independent policy elsewhere. Or you may not need a courtesy car if you have a second vehicle in your household.

The quickest way to save is to shop around for car insurance every year - then you can be sure you’re getting the cheapest policy for your needs.