Here are our top tips on reducing your insurance premium. Also, we provide solutions in the article which will help you to get cheap car insurance. Just follow the links provided in the article apply for it to get a reduction in car insurance.
1. Use a price comparison site
Essentially, insurance underwriters arrive at a price for your specific quote by adding or discounting monetary amounts after each answer you give to the questions they ask you.
The underwriters for these companies all have different views on what they consider to be a good or bad risk. This is coupled with the type of business the firm is in the market for.
Therefore, it’s prudent to spend a little time shopping around for the best quote. By far the easiest way to do this is using a price comparison website. Rather than visiting each insurance company online, a comparison site enables you to enter your details just once and they will then do the hard work for you, showing you the cheapest quotes across the market.
The majority of these comparison sites generally have very similar lists of providers, although some may have unique schemes given to them by insurers that contain custom rates for their site, so it may be a good idea to try a few different comparison sites.
2. Purchase a lower insurance group rated vehicle
With over 350 different car models to buy in the UK , rating each one would prove impractical for underwriters. Instead, they divide them up into 50 groups; with group 1 considered being the least amount of risk and group 50 the highest risk.
Some of the risk elements that define car insurance groups include:
- Engine size
- Vehicle value
- Safety features
- Cost of replacement
- Cost of parts and labour to repair the car
It also follows that the lower the group rating, the lower your premium is likely to be. So, before buying your new car, always check to see which insurance group it falls into. It can have a dramatic affect on your running costs.
3. Consider a different level of cover
It is a legal requirement to have insurance if you wish to drive a vehicle on the road in the UK.
The absolute minimum level of cover you need is called Third Party Only (TPO). If you are unfortunately involved in an accident, this will legally cover you for liability against injury to other people and damage to their property.
However, the big downside here is that any damage to your vehicle will not be covered, including a write-off where you car cannot be repaired and is of junk value only.
You should only consider opting for such cover if your vehicle is significantly low in value, as you will lose everything invested in it. For example, if you’ve only paid £500 for your car then it might make sense to avoid paying for a more expensive fully comprehensive policy where the premium is even higher than the actual value of your vehicle.
However, buying TPO cover is not always the cheapest option as these drivers are often viewed as high risk. Consider looking at Third Party, Fire & Theft policies and compare prices between all three levels.
4. Buy online
Although the majority of people now get quotes via the Internet, some companies still offer web only discounts for buying your policy online instead of using their call centre.
This is because of the overheads involved in operating a contact centre operation. Companies can avoid these expenses if more people buy on the web instead. Also while applying online you should should check it on 2-3 websites and then you can compare their prices and choose the best offer for you.
Here are the list of cheapest car insurance provider you can check them all and compare their prices with online discount offers:
5. Opt for a higher voluntary excess
When completing the details for your quotation, you will likely be given the option of adjusting your voluntary excess. This figure refers to the monetary amount you agree to pay towards any claim you make.
For example, if you choose a £500 voluntary excess then you will pay £500 above any compulsory excess for any claim costs incurred by the insurance company. So if the total claim is £1,000 then you will need to pay at least half of this.
The benefit of increasing your voluntary excess amount is that your overall premium will be lower. It’s tempting therefore to increase your voluntary excess to the maximum possible in order to get your premium down. However, consider that around 10% of people make a claim with an average claim cost of around £3,000.
The bottom line is that you need to find the right balance between lowering your premium and being comfortable with the amount you pay towards any potential claim you have.