How do I save money on car insurance?

Black box insurance

Not many people like the black box because it does mean that your driving style is constantly being watched and the insurer will judge what you have to pay by the way you drive. The tracker installed with this policy ensures you keep to all speed limits. If you speed, the insurers will know about it, which will then have a negative effect on your policy, but if you stick to the rules, it will bring the cost down. They measure how well you drive by other factors too, including whether you often brake sharply and how well you take corners.

Safety features

Securing your car as much as possible to deter people from breaking in or stealing it will have a positive effect on your insurance. If you haven’t been a victim of car crime, then insurers may feel confident that your car is safe. So, what can you do to improve your car’s safety? Installing modern security and car alarm systems is a great way to protect your car and bring down insurance premiums each year.

Protect your no claims

If you haven’t had the need to claim in the last 5 years, then insurers may reward you with the option to protect your no claims bonus. It may seem annoying to add an extra cost when you’re trying to lower your premium, but if you haven’t protected your bonus and you need to claim, the next time you renew your car insurance will hit you hard as your premium could dramatically rise. Prevent being heavily out of pocket in the long run by selecting the small annual fee to protect your no claims bonus.

Voluntary excess

Increasing what you pay if you have an accident (which you can get back if it wasn’t your fault) can lower your premium. But don’t increase it too much – you don’t want to get stung if you’re unfortunate and have to pay out.

Type of insurance

You can choose the type of insurance you want depending on what you can afford. There are multiple types of insurance policies, some of the main ones include third party, third party, fire and theft, and comprehensive. But what do they all mean?

• Third party: covers claims from others, for example, to fix the damage on their car but not your own.
• Third party, fire and theft: covers claims from others, fire damage to your own vehicle and your car being stolen.
• Comprehensive: covers all the above as well as accidental damage to your own car.

Correctly filled out policy

Something as simple as filling out your form correctly will influence your policy. Tell them exactly what you use it for, for example, business or domestic, who’s going to be driving the car, the estimated annual mileage etc. If it turns out that you were misleading in your form and you need to claim, they may not pay out.

Enter an accurate car value

When filling out your policy form don’t make the mistake of over estimating the value of your car; the more your car is worth the higher your premium could be. Cars depreciate over time and it’s important to know how much your car is worth now, opposed to how much you paid for it.

Drive carefully

It goes without saying that you should drive safely, and we know accidents can be caused by other people too, but doing your best to avoid collisions and remain claim free will be good for your wallet in the long run when it comes to your insurance. Insurers don’t consider the finer detail of who’s at fault in an accident, if you’ve made a claim your next insurance policy will cost you much more.

Shop around

Don’t just settle for the first insurance policy you find. Shop around and find the best one that suits your needs and your bank account. However, if you’re a home owner, using the same insurer as your house insurance can often strike you a deal so be sure to look into that too.