According to recent stats, “the average cost of car insurance cover was £561 in 2023”. It was 29% higher than in 2022. Moreover, 2024 may also witness a surge in insurance cover prices.
Car insurance is a hefty expense, and car insurance provider’s factor in several parameters while calculating premiums. Unfortunately, neither the provider nor the applicant can predict the numbers. Thus, one must check whether they can clock in a cheap quote even if you lack the renewal facility. It is because staying out would not help you anyway.
Let’s explore some tips to save money on car insurance coverage and ensure a smart fetch. Before that, let’s analyse the types of insurance available to individuals.
What types of car insurance you can opt for?
There are mainly 3 types of car insurance covers that you can opt for:
1) Third-party car insurance cover
It is the minimal insurance coverage that one is required to drive the car legally. It only covers damage to other’s property or a person.
2) Third-party, fire and theft
It is the same as above but provides additional security in case the car catches fire or gets stolen.
3) Comprehensive cover
Many car insurance providers provide a mix of these covers according to your car’s state, driving skills and requirements.
6 Ways to get cheap car insurance covers
Most individuals seek cheap car insurance covers to reduce their liabilities towards car insurance and concentrate on car finance deposits. Thus, if you are seeking cheap car insurance covers, the below tips may help you:
1. Shop around for car insurance covers
Instead of accepting the renewal cover quote directly, shop around for the best quotes. You may get a better and more affordable deal than with the existing vendor. Compare the car insurance covers for the types of covers like- third-party car insurance, fire and theft and comprehensive cover.
You can compare the quotations for these covers on different car insurance websites like Go Compare, Moneysupermarket or Uswitch. It may help you know the most suitable car insurance covers for your needs. However, do not pick the cheapest one quickly. Check the aspects it covers, like (windscreen cover or breakdown assistance).
2. Apply for annual premium payments
Paying for car insurance in a lump sum is better than paying monthly. However, you can choose either depending on your finances and comfort. It reduces the costs of interest if you pay it in a lump sum. You can do so with a credit card or online payment. Moreover, check for rewards or credit cards with a 0% interest rate. Identify whether you can get a cash-back on paying some amount extra.
Whichever pattern of premium payment you choose, pay regularly. Missing or skipping a payment implies additional penalties and costs. Individuals struggle to save for premiums for the month due to sudden expenses like- repairs, medical requirements, etc. However, you do not need to skip payments due to tight finances. Instead, get unsecured loans from direct lenders that meet your affordability and needs. It may help you clear the premium payment on the very day without attracting any penalty fees.
3. Choose a black-box insurance
It is one of the best ways for individuals with low credit scores to save money on car insurance covers. Moreover, it makes your car finance cheaper. As a part of the black box insurance policy, your insurance company will install a black box in your car or require you to download an application that tracks your driving.
This encourages safe driving and helps the company retrieve it if the car gets stolen. You need to install it until you clear your car finance premium. Thus, the better you drive, the lower your premiums will be.
4. Increase your excess premium amount
The excess is the amount that an individual pays while claiming insurance. It is of two types- voluntary and compulsory. If you pay higher voluntary access, you can reduce premiums. However, you must be mindful of the situations where you use it.
For example- if your voluntary excess is £200 and compulsory is also £200, you may not claim. It is because the voluntary excess must exceed £500. Additionally, if you are to pay for repairs, it may cost you an extra £50, leading to £550. Here, the insurer will only contribute £50, which is not a favourable deal.
Thus, situations like these make it useless to claim. However, calculate every cost to emerge at an estimate of what you can save.
5. Describe your job title carefully
Car insurance focuses more on an individual’s earnings and income while providing insurance. It helps them know the amount they can afford, given the liabilities. For example, “a hairdresser may pay a different premium than a person owning a barber shop.” Thus, describe your job in the best way that highlights your potential to pay the premiums comfortably.
Also, while searching for the best car insurance covers on price comparison websites, fiddle with the job aspect. Enter different jobs every time and see the difference in price quotes. It will help you frame the best description of your job. However, do not dissuade yourself from being authentic about your profession.
6. Protect and leverage no-claim bonuses
You earn a bonus every year you drive without claiming your insurance. Thus, if you save insurance claims for at least 8 years, you can save up to 80% on the insurance costs!
However, you cannot speed up the process to claim that massive save. Protecting your no-claim bonuses can improve your chances of getting cheaper car insurance coverage. However, the provider may ask you for an extra fee to protect the claim. Additionally, you must provide a small premium to clock your no-save premium gain.
Fees and premiums may seem expensive when you consider paying your car finance dues and insurance premiums. Individuals with little financial flexibility may finance their needs with short-term loans. Moreover, you can do it on the same day. Yes, you can get loans in 15 minutes with no credit check facility to finance the payment. What could be better than saving the deal without impacting the credit rating?
These are some of the best ways to secure cheap car insurance covers. Identify the aspects it covers and the quotes. Choose the one that meets your affordability and the budget. Additionally, getting a guarantor may also help you qualify for cheap car insurance coverage. It strengthens your finances and driving history. It is usually ideal for young drivers.
Emily Rhodes operates as a Senior Content Writer at Easyadvanceloan for 5 years. She oversees the financial planning and monitoring of the cash flow. Emily also helps the firm forecast its financial standing by analysing the operational data and latest reports. It requires detailed research and predicting the trends before arriving at a conclusion. Emily Rhodes’s credible predictions and the best usage of problem-solving and analytical skills help the firm revise financial policies for growth. She ensures the best of her expertise by working in tandem with the CEO and Chief Operating Officer. Academically, Emily is a postgraduate with MBA in Finance from a reputed university.