Saving on your car insurance
Living without a car can be a nightmare, even in a large city. However with the rising cost of car insurance it can feel like you’re stuck between a rock and a hard place. Coupled with skyrocketing fuel and car tax, young drivers especially can have a hard time meeting the costs.
Excessive car insurance bills can be an undeserved burden on younger car owners- yet without those early years driving, the no claims discount enjoyed by more experienced drivers will be a pipe dream. So how can you keep those premiums down?
- Named drivers
This is a nifty trick many now use to reduce overall risk on their insurance calculation. Add parents, friends, relatives- whoever you can who has a long and unblemished record- as a named driver they will bring your premium down even if they never get behind the wheel of your car.
Car insurers work in mysterious ways- but there’s method in their madness. Their quote generators are finely-tuned machines that can calculate quotes based on tiny changes to the metrics. One job title might get you a higher quote, because of increased risk or simply because average income is higher- so experiment with comparison sites, tweaking your job title as far as possible without telling fibs.
Car security may be one of the most unfair parts of car insurance- if you have a locked garage off the road- brilliant, but if your home forces you to park on the street- prepare to pay more. Of course in theory you could move, although realistically a saving of a few hundred pounds a year transfers onto property costs. However wherever possible consider adding tracking or immobilising tech to your car- it may help make up some of the difference.
- Don’t focus on third party
Car insurance wisdom has long held that third party is cheaper than comprehensive cover- yet despite the added burden on the insurer, recently this has begun to change. Their calculation is that showing willingness to shoulder a more expensive policy shows responsibility and better risk management- meaning less overall risk to their bottom line.
- Black box or dash cam
Black boxes have become widely available from insurers, but are they worth the saving? In theory rewarding safe drivers is a no-brainer, however the discount they offer comes with a big caveat- they want to catch you out and raise their bills. Even legal-but-technically-risky behaviour, such as driving at rush hour or at night, or on statistically dangerous roads could bump up your premiums or may even get your insurance cut off. Car insurance by the numbers means even if you’re driving safely & legally, there’s nothing to stop them charging you if the computer says so.
One alternative that won’t save as much is a dashcam. With it, you can save over 10% off your bill, without Big Brother tracking your movements.
Auto-renew at your peril. You’re likely to be charged a large increase without much justification- purely because insurers know the majority of drivers won’t dispute it. Check the policy you’re getting and what your insurer would charge a new customer of it- you may find you can save by switching.