How to Make Car Insurance Cheaper: A Comprehensive Guide

In today's economic climate, everyone is looking for ways to save money, and car insurance is no exception. While there may not be a way to find 'cheap' car insurance, there are ways to cut back on costs. From factors such as your age, job, driving experience, and where you park your car, to more easily controlled factors like avoiding penalty points and purchasing insurance in advance, there are numerous tips and tricks that can help you save on car insurance. This comprehensive guide will explore various ways to make car insurance cheaper, providing valuable insights and advice that you can't afford to miss. 

Choosing the Right Car

One of the most significant factors that can influence the cost of your car insurance is the car itself. Cars are categorised into various insurance groups, with different price marks attached to each group based on their perceived risk level. This risk level is determined by factors such as fuel consumption, CO2 emissions, and overall safety features.

It's crucial to carefully research and select a car that falls into a lower insurance group to save on insurance costs. While you may have your heart set on a luxury or sports car, opting for a more economical, low-maintenance vehicle with fewer mechanical risks will result in lower insurance premiums. For example, vehicles like the Vauxhall Corsa typically belong to cheaper insurance groups compared to premium brands like BMW.

Age, Experience, and Occupation

Age and driving experience play a significant role in determining your car insurance premiums. Young drivers, particularly those under the age of 25, are considered high-risk by insurance companies due to their inexperience and a higher likelihood of being involved in accidents. This results in higher premiums for younger drivers.

However, age isn't the only determining factor. The number of years you've been driving and your claim history also play a part in calculating your insurance costs. For instance, a 55-year-old who just passed their driving test may pay more than a 25-year-old who has been driving for several years without any claims.

Your occupation is another crucial factor that influences car insurance costs. Some jobs are deemed riskier than others by insurance companies, leading to higher premiums. For example, if your job involves extensive travel, you are more likely to have an accident and therefore be considered a higher risk. Be honest when describing your occupation on insurance forms, but consider how you can present your job title in a way that may result in lower insurance costs without being untruthful.

Parking and Car Security

Where you park your car overnight is an important factor that insurance companies consider when determining your premium. Parking your vehicle in a secure location, such as a private driveway or garage, can help reduce the risk of theft or damage, ultimately lowering your insurance costs. If you must park on the street, choose a well-lit area or a location with CCTV to deter potential thieves and vandals.

Additionally, ensuring your car is safe and secure can help lower your insurance premiums. Installing safety equipment such as alarms, immobilisers, and other security features can minimise the risk of theft or damage, making your car a more attractive prospect for insurers. Be sure to inform your insurance provider of any security measures you have taken to ensure the potential savings are reflected in your premium.

Driving Habits and Mileage 

The amount you drive directly impacts your insurance costs. Drivers who cover fewer miles are less likely to be involved in accidents, making them a lower risk for insurance companies. Be mindful of your annual mileage and ensure you don't exceed the limit specified in your policy, as exceeding this limit could result in future claims being denied.

Furthermore, your driving habits can also influence your insurance premiums. Avoiding penalty points on your license by driving safely and adhering to traffic laws can help you secure lower insurance rates.

Insurance Add-Ons and Black Box Policies

While it may be tempting to purchase a full insurance package with various add-ons, it's often more cost-effective to buy additional coverage, such as breakdown cover, windscreen cover, legal protection, and courtesy car use, as separate policies. This allows you to compare prices and potentially find cheaper deals elsewhere.

Another option to consider is black box car insurance, also known as telematics insurance. A black box is a small GPS-tracking device installed in your vehicle that records your driving habits and behaviour, scoring you on factors such as speed, braking, and nighttime driving. If you maintain a good score over the year, your insurance premiums may be lowered. This type of policy is particularly beneficial for new drivers looking to reduce their insurance costs.

Comparing Car Insurance Quotes

Even if you're satisfied with your current insurance provider, it's essential to shop around and compare quotes from different companies. There may be more affordable options available, especially from specialist insurers who cater to high-risk groups or those with modified cars. Don't let loyalty blind you – make sure to explore all your options to find the best deal.

Avoiding Auto-Renewal and Purchasing Insurance in Advance

When your car insurance policy is nearing its end, be sure to turn off auto-renewal and start shopping for a new policy well in advance. This not only prevents you from being locked into another year with your current provider but also gives you ample time to find a better deal elsewhere. Purchasing insurance two to three weeks before it's due to begin can result in significant savings compared to booking a policy on the same day.

Increasing Your Excess and Building a No Claims Discount

Choosing to pay a higher excess – the amount you'll pay out of pocket if you make a claim – can result in lower insurance premiums. However, ensure that the excess you select is affordable, as you will be responsible for paying it if you file a claim.

Building a no-claims discount (NCD) by going an extended period without filing any claims can also lead to substantial savings on your car insurance. Some drivers may even choose to protect their NCD by paying a small fee, allowing them to maintain their discount even in the event of a minor claim.

Payment Options and Adding Named Drivers

Paying your car insurance premium in one lump sum annually, rather than monthly, can save you money by avoiding added interest charges. Although monthly payments may seem more manageable, they typically come with additional costs that can add up over the year.

Adding a named driver to your policy can also impact your insurance costs, depending on the driver's experience and occupation. For example, adding a more experienced driver with a low-risk job may help lower your premium. However, be cautious not to engage in 'fronting,' which involves falsely listing someone else as the primary driver to secure lower rates. This practice is illegal and can result in policy cancellation or prosecution.

Advanced Driving Courses and Electric Car Insurance

Enrolling in an advanced driving course, such as the Pass Plus scheme, can sometimes lead to insurance discounts. While not all providers automatically offer discounts for course completion, it's worth contacting your insurer to see if they'll consider a reduction in your premium. Additionally, advanced driving courses can improve your driving skills, potentially reducing the likelihood of accidents and claims.

When considering electric car insurance, it's important to note that these vehicles have traditionally been more expensive to insure due to higher repair and replacement costs. However, as electric cars become more common and repair costs decrease, insurance premiums for these vehicles are gradually becoming more affordable.

In Summary

As demonstrated, there are numerous factors and strategies to consider when looking to make car insurance cheaper. By carefully selecting your vehicle, maintaining a clean driving record, comparing quotes, and taking advantage of discounts and advanced driving courses, you can significantly reduce your car insurance costs. Keep these tips in mind when shopping for your next policy, and you'll be well on your way to finding affordable car insurance coverage.