Car insurance is one of the unavoidable costs of motoring. It’s a legal requirement to have at least third-party cover if you drive a vehicle on the public road. Â
The latest figures from the Association of British Insurers (ABI) show the average cost of an annual car insurance policy in the UK is £551. However, that figure will vary hugely depending on your age, address, choice of car and driving experience. But there are other, less obvious, ways to reduce your annual car insurance premium.
Here are nine surprising ways to cut the cost of car insurance, with help from Moneyshake and Uswitch.
Get married
An insurance premium could be slashed by up to £200 for a married couple in their thirties. Research shows that single drivers are twice at risk of having a road accident as somebody who is married.
Even if you’re not ready to tie the knot, some insurance companies offer discounts for couples who live together, so it’s worth shopping around for quotes.
Obviously, if you blow £23,700 on your nuptials (the average cost of getting hitched in the UK, according to the National Wedding Survey), those savings may not exactly add up…
Add your parents to the policy
Adding a responsible driver with a clean record to your policy could reduce your premium. Indeed, you could save hundreds of pounds by including your parents as named drivers.
However, named drivers must only use the car occasionally, not on a regular basis. Otherwise you are at risk of invalidating the insurance policy due to so-called ‘fronting’.
Insurance fraud could leave you liable for any costs that arise due to a collision or claim, too.
Decrease your voluntary excess
The voluntary excess is the amount of money you’re prepared to pay upfront in the event of a claim, which is agreed in advance when you take out the insurance policy.
You’d be forgiven for thinking that increasing your excess would reduce your annual premium, as it leaves the insurance company with less to pay out.
On the contrary, says Moneyshake: halving your voluntary excess from £500 to £250 can make your policy 25 percent cheaper. Win-win.
Tweak your job title
While it’s important to tell the truth about your profession, getting creative with your job title could save you hundreds of pounds.
Uswitch said a chef will pay around 40 percent more than somebody with the job title of ‘cook’, for example. Let’s just call that one the ‘Gordon Ramsay effect’.
In truth, the reason is that premiums are based on historical data, so chefs have made more car insurance claims in the past than cooks.
Adjust your mileage
When you’re arranging cover, you will be asked to provide an estimate of your annual mileage. In general, the lower the mileage, the less you will pay.
It’s easy to get an approximate figure – just look at the distance covered between one MOT test and the next.
That said, the savings from reducing this figure aren’t huge. And you need to be careful when estimating your mileage, as going over the limit may incur excess charges. The same is true if you have an annual mileage limit on your car finance agreement.
Invest in new technology
Insurance companies are encouraging policyholders to invest in new technology. Drivers with dash cams, for instance, usually save between 10 and 12.5 percent a year. This could be as much as 20 percent for young drivers.
GPS trackers, mechanical immobilisers and steering locks could also help to cut the cost of car insurance. However, Moneyshake found that adding a tracking device and locking wheel nuts could actually make your premium go up.
Check with your existing provider before making any changes. You don’t want your money-saving efforts to backfire.
Register to vote
Being registered on the electoral roll will improve your credit score, which could lower the cost of your car insurance. Experian says that registering to vote is a sign of stability, so lenders are more likely to support your application for credit.
Typically, appearing on the electoral roll at your current address will add 50 points to your Experian credit score, which could be used to determine your level of risk by a car insurer.
Don’t keep your car garaged
Yes, you read that right. Research from Moneyshake showed that parking on the street outside your home instead of in a garage brought down insurance quotes by an average of 30 percent.
The thinking, perhaps, is that cars can easily be damaged when manoeuvring in and out of a garage.
Have MORE insurance cover
This one also seems counter-intuitive. Bur insurance quotes with third-party, fire and theft cover can be 50 percent more expensive than a comprehensive policy.
This may be due to higher-risk drivers keeping their costs low by opting for third-party cover. Provided you can go fully comprehensive, this one is another win-win.
Above all, shop around, don’t rely solely on car insurance comparison sites and tailor your policy carefully to ensure the best value for money.
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