Car insurance costs have fallen for the first time in years, offering some relief to drivers facing record-high premiums.
According to Compare the Market, annual premiums have dropped by £221 compared to last year.
While this decrease is a welcome change, the overall cost of car insurance remains substantial, particularly for certain age demographics. This essential legal requirement protects drivers from financial fallout in the event of an accident.
But how can you lower your insurance costs and are there any tips for making premiums lower? We’ve got some ways to help.
Shop around for multiple quotes
One of the best tips to lower your annual premium rate is to shop around for different offers.
Never accept the first quote, as there are plenty of insurance companies that will give you different rates.
By providing the most up-to-date information, it stands you a greater chance of reducing the cost.
Don’t be loyal to an insurance company, either, and when it comes to renewal time make sure you check out a variety of providers to make sure you’re getting the cheapest prices.
Choose a vehicle best suited for your age and experience
If you’re a young driver with little experience on the road, look for an efficient, frugal hatchback.
Insurance premiums are influenced by the make, model and performance of a car. If you buy a vehicle that is prone to being stolen, crashed and damaged, it tends to cost more to insure.
Look at a multi-car policy
If you own more than one vehicle, you could look at taking out a multi-car policy.
It allows you to provide coverage on multiple vehicles throughout your household. All of the premiums will appear on one insurance bill, with each listed separately. They can have different levels of coverage, too. But, the benefit is that most insurance companies will give you a substantial discount on your annual premium costs when combined under one policy.
Consider a black box if you’re a younger driver
A black box is exactly what it says it is. Its purpose, however, is to monitor your driving for the first couple of years on the road, with it tracking your speed and time behind the wheel.
The box can be located in the engine bay or in the boot, and stores data on your driving which is then fed back to the insurance company. Remember, however, that as well as lowering premiums for good driving, a black box can also increase them if you’re found to be exceeding speed limits, for example.
Reduce your annual mileage
The amount of driving you do every year can reflect how much you pay for your car insurance.
When it comes to your renewal, most companies will ask you for a yearly mileage allowance.
The more miles you cover, the more your insurance will be. The best advice is to be as accurate with your mileage input to give you the best quote.
Sometimes, putting in an annual 10,000 miles a year when you actually cover 5,000 miles can result in you paying more than you need to.
Declare all modifications on your vehicle
If you decide to buy a car and then modify it to your exact specification make sure you tell your insurance company.
Changing things such as an exhaust can be classed as a ‘modification’. If you’re involved in an accident, and your insurance company is unaware of the changes made, they will not pay out.
This will make your insurance premiums more expensive, and you’ll have to pay out for the damage to your car.
You can purchase ‘modified car insurance’ where the firm will have an automatic list of mods covered for your vehicle – making it simpler and easier to get a quote.
