Tracking down cheaper car insurance

Car insurance is an expensive necessity as every driver must have at least third party cover.

Driving without insurance is a serious offence that often results in a driving ban, points on your licence and a fine.

Car insurance companies include lots of factors in calculating your insurance premium, like age, gender, where you live and the type of car you drive.

Some of these are beyond your control to change to try and keep your premiums down – but others are, so here’s a list of tips that may help you save money on your car insurance.

• Drive more carefully – do everything you can to keep your no claims bonus intact and this gives you a hefty discount each year
• Park your car off the road, in a locked garage if you can.
• Fit an alarm, immobiliser and a tracking device if you can – any insurance approved anti-theft device will knock money off your premium
• Try and reduce your mileage and night driving – people who drive between 7am and 11pm and average less than 10,000 miles a year often pay a lot less than drivers who use their car more
• Don’t add too many named drivers – everyone bumps up your policy
• If you can afford a higher excess, then pay the extra because this will cut the cost of your premium as well
• Shop online – use more than one comparison site because not all insurers are on all the sites and some are not on any. Generally, buying your car insurance online might save you up to 10% on what you would pay through a broker.
• If you’re a married man see if there’s a difference in cost between your wife taking out a policy with you as a named driver rather than the other way round. Many insurance companies give cheaper premiums to women drivers.
• Look for an extra bonus, like discounted breakdown cover, that reduces the costs
• If you belong to a special member club for a particular type of car, the club may have a special deal with a broker or insurance company that will save you cash.
• If you’re a woman driver or aged 50 or over, look for a special insurance deal as you are a lower risk than most drivers.
• Don’t pay your insurance in instalments – it will cost you more. Instead, consider paying your premium on a 0% interest credit card and paying the premium off over your interest free period.

For example, if your annual insurance premium is £360 and you pay with a 0% interest credit card that gives you a six-month interest free period, pay £60 a month off your card instead of paying interest to the insurance company.

Summary

• Try and reduce your premium by reducing your risk – fit anti-theft devices to your car and try and park off the road in a garage
• Shop online for a discount – but make sure you go to more than one comparison site because not all insurance companies are represented on all comparison sites
• See if you can qualify for a discount deal through a special insurance provider if you can
• Pay a higher excess and reduce your premium