How can you lower your car insurance?

Car insurance is a necessary cost, but that doesn’t mean you have to pay an arm and leg for it. We look at ways you can lower the price of your policy.

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Car insurance is just a fact of life if you own a vehicle. But that doesn’t mean that you just have to settle for your renewal price. In fact, it’s almost always better to compare car insurance quotes before taking out a new policy. Plus, there are several ways to reduce the cost of your premium. Let’s take a look at your options.

Don’t auto-renew

Unfortunately, in the world of car insurance, loyalty doesn’t usually pay off. Renewal prices tend to be higher than if you shop around a bit. So when your renewal quote arrives, it’s always worth jumping onto a comparison site like MoneySuperMarket or QuoteZone to see if you can lower the price.

Pay annually

While it may be more convenient for you to pay your car insurance monthly, it will end up costing you more in the long run. This is because monthly payments are essentially a credit agreement so you also end up paying interest. This pushes the overall cost over the year much higher.

Think about how you use your car

How you use your car and where you park it can have a big impact on the cost of your car insurance premium. If you don’t use your car to commute, you don’t need a policy that will cover that. And if you park your car in a garage at night, this reduces the risk of break-ins and therefore lowers your quote.

However, it is always important to provide accurate information when getting a car insurance quote. If you are not honest, you could risk invalidating your policy.

Increase your voluntary excess

Your voluntary excess is what you agree to pay towards any repairs or replacing your car before your insurance company covers the rest. The higher your voluntary excess is, the lower the price of your car insurance will be. But just remember that if you were to make a claim, you would then be required to pay that amount. So make sure it is a figure you can afford.

Build up your no-claims bonus

Building up your no-claims bonus will make your car insurance cheaper. Your years of no claims prove to an insurer that you have a good driving history and therefore that you are a safer bet.

You can even opt to protect your no claims bonus. This is usually an added extra and could increase the price of your policy. But it means that if you do end up having to make a claim, you won’t lose all of your discount.

Only pay for what you need

Car insurance providers will offer all manner of add ons. Breakdown cover, legal assistance, windscreen cover and protect no-claims bonus to name a few. It’s best to have a think about which add-ons you would get the most benefit from and whether it’s worth the additional cost. If you wouldn’t use it, don’t pay for it.

Consider black box technology

Lots of insurers now have a telematics policy. This is where you fit a device to your car that will measure how well you drive. Obviously, if the device feeds back that you are a safe driver, it can reduce the cost of your car insurance.