Driving is becoming an increasingly expensive way to get around and people find that one of the major expenses is the annual car insurance premium. Most people will find that even if they are the perfect driver with a clean record that the price of insurance still goes up. Next year women are going to be facing even more expensive insurance as discrimination laws are going to make it illegal for women to get cheaper insurance because of their gender. Fortunately there are plenty of ways to lower the cost of your driving insurance; this article is going to look at some of the most effective methods.
First off it is a good idea to be aware that renewing your insurance with the same company does not mean it will be the cheapest option. It is a common assumption that if you go for an ‘auto renew’ option then you will be given a lower quote the next year. This is not necessarily so and drivers may find they can save hundred of pounds by switching insurer.
Gocompare.com is a website that allows you to compare the cost of insurers. John Miles, from the website has said, “My advice would be to take a look at the quote your current insurer gives you then get online to see if you can find a better deal. If you are switching, make sure you check you current policy and give then enough notice so that you don’t have to pay any cancellation fees.”
Our next tip would be to volunteer to pay a higher excess. Most insurers work on the method that if you have a lower excess payment – the amount you pay before your insurance covers the accident – the higher the premium.
For new drivers insurance costs can often be several times the cost of their car and this is because new drivers are, statistically, more likely to cause an accident. If you want to pay a lesser premium you may want to consider sharing your parents car, this way you become a ‘named driver’ on their policy, which is a much cheaper option. Do not think you can fool the insurers by saying your parents are the main driver on your car as this is illegal.
Another popular option for reducing insurance is for new drivers to take ‘Pass Plus’ lessons. This could once drop premiums for new drivers, but the AA says this is no longer the case. For older drivers this can reduce your premiums.
For those who cannot afford to pay for the entire years premium at one time consider using a 0% credit card rather than the monthly option offered by the insurer. You must be disciplined though and pay off the balance before the end of the 0% period, or you will face increasing debts.
If you are caught speeding you will find that the cost of the fine will only be a small part of the financial pain. The insurance companies know you have committed an offence and your insurance will jump spectacularly.