Save on Car Insurance to Battle Fuel Costs

No matter which side of the Atlantic you live on, you’ll have been feeling the pressure of rising oil prices in recent weeks. Concerns over supply problems in Nigeria sent US crude oil to a record $122 while in London Brent Crude hit a record $120.41 a barrel.

It seems that fuel prices are only going to get higher with some analysts predicting they will hit $200 a barrel within two years. Consequently, drivers should seek out alternative ways to reduce the cost of motoring, such as cutting car insurance premiums.

An independent financial comparison website has warned customers that car insurance companies are likely to hike premiums by as much as 10 per cent during the course of the year due to a rising number of claims. It’s vital that drivers keep an open mind about where to get their car insurance from - or they could find the best deals pass them by.

The importance of shopping around for car insurance

According to a price comparison website, 6.43 million drivers switched their car insurance provider in the past six months. While that appears to be an impressive total, it still only makes up around 14 per cent of car insurance policyholders in the UK.

Many drivers are missing out on the importance of obtaining a new car insurance quote each year because they are content to stick with their existing provider. Certainly loyalty is not a bad thing, particularly if your car insurance provider has proved its worth by resolving a claim in a satisfactory manner. However, motorists shouldn’t fall into the trap of assuming their existing provider will always offer them the best deal.

Even if your insurer was the cheapest when you originally signed up, that is unlikely to still be the case. Most car insurance providers offer their most attractive deals to new customers - with incentives such as cashback offers, several months free and online discounts. The reason most insurers are able to attract new business in this way is because they are hiking premiums for their existing policyholders.

It’s vital therefore to shop around for car insurance every year. While it may seem like a hassle, it needn’t be. Simply mark the date in your calendar and then a couple of weeks before your policy is due to expire use a price comparison website to compare quotes from dozens of providers. The process takes just minutes - and could save you a small fortune. It is estimated that a car insurance comparison website could save customers as much as 30 per cent on their premiums.

Take steps to lower your car insurance costs

Regardless of whether you choose to move to a new car insurance deal or not, you can still save money by lowering your risk in the eyes of the insurer. The higher the risk of a claim, the higher your premiums will be.

To make your car less of a theft or vandalism risk, install a car alarm and immobilizer. Consider adding wheel locks too. Most Thatcham devices are approved by car insurers and could save you around 10 per cent on your premiums.

Also think about where you park your car at night. If it’s left in a darkened area on a quiet street it’s likely to be at risk of theft. So if you can park it in a garage at night, do so - and inform your insurer too as your premiums will be adjusted accordingly. If there is no garage available to you, be sure to park in a well-lit area.

Think about ways to reduce your accident risk. Building up a no-claims bonus will earn rewards from car insurance providers and you can also enjoy lower premiums if you stay conviction free. Your car insurance provider might be willing to offer you lower car insurance premiums if you agree to drive only at certain times of the day - if you can avoid the rush hour your premiums should be lashed as a result. A mileage limit too will be noted by an insurer.

Avoid modifying your vehicle as this will increase its desirability to thieves and vandals and may make a statement about how you intend to drive it. Stick to cars with low insurance group ratings and small engines - and remember that there are also road tax benefits for cars with lower emissions.

There are other methods to save on car insurance too including paying annually instead of monthly, undertaking an advanced driver’s course and adding a parent as a named driver on a policy if you’re aged 18-21. There are plenty of ways to save, so take every action you can.