Five Easy Ways to Save Money on Your Car Insurance

Car insurance is a major expense for many drivers, and reports show that we can expect costs to get worse before they get better. A survey by Sainsbury’s Bank indicates that the average cost of car insurance for UK drivers is now £514.38 – a rise of 5.8% on 2007, and the first time the average has broken the £500 since the measure was first recorded in 2005.

However, there are things to do to help keep your car premiums low. Here’s five tips to help you on your way:

1. Be a woman.

Admittedly, this one’s probably out of your hands – but if you do happen to be of the feminine persuasion, you can expect to pay much less for your car insurance. The Sainsbury’s survey also indicated that men pay £540.49 on average, compared with £470.47 for women. Similar circumstances that will probably drive down your premiums include being older than 25, but below retirement age. If you fall into any of these categories, look for specialist insurance providers that might be able to give you a better deal.

2. Buy online.

Several of the larger insurance providers offer considerable discounts for ordering your insurance online – often as much as 10% (or, speaking from the averages, a cool £50). Given that a great many people choose to look online for their insurance package anyway, you could save money by doing almost nothing.

3. Cut out the middleman.

There’s a glut of price comparison services on the internet these days and, while it’s technically possible to get a bargain by comparing a multitude of different providers at once, it’s important to remember that these middlemen have to make their money from somewhere – and that somewhere is you. By going direct, you can usually save yourself a packet. It’s a little more work, but it’s often worth it.

4. Look for bonuses.

While some policies may cost more, you might find that the additional features you get may make it worthwhile. Take no claims bonuses, for example – if your policy allows you to carry over a no claims bonus from a previous insurer, you may save considerably more money in the next year of your policy (should you decide to stick with the provider and, obviously, don’t make a claim). However, these often work off a ‘what if?’ sense of logic, requiring you to gamble a fixed discount today in order to save more in the future.

5. Switch providers.

There’s nothing to say you have to stick with your current provider if you can find a better deal elsewhere. In fact, given that most introductory offers designed to reel in new customers expire after a year, you could well be better off making a move to a new provider; not only do you avoid a price jump as your own introductory offers run out, but you can likely profit from new offers by switching services. Of course, you might lose accumulated bonuses (including no claims discounts, for example), but it’s entirely possible that you’ll still come out on top.