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7 simple ways to save money on your car insurance in 2022

7 simple ways to save money on your car insurance in 2022
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With the cost of living expected to rise this year, finding ways to save money on your expenses has become more important than ever.

Keeping the cost of your car insurance down is something that could make a real difference to your monthly budget. The good news is that there are numerous ways to do just that.

To help out families who may be feeling the pinch because of the rising cost of living, car insurance comparison site Quotezone has shared seven useful tips to help you save money when it’s time to renew your car insurance.

What’s happening with car insurance rates this year?

UK car insurance rates hit a seven-year low at the end of 2021. However, in 2022, cheap deals are set to become scarce as a result of new insurance rules coming into force.

Although most people tend to shop around for new car insurance deals every year, those who do not and choose to stay with their current provider are usually charged a ‘loyalty penalty’. This usually results in them paying a higher premium than new customers.

However, under new rules that went into effect on 1 January 2022, premiums offered to customers renewing a policy cannot be higher than premiums offered to an equivalent new customer for the same policy.

With insurers now unable to charge loyal customers more, it’s likely that many will raise premiums for new customers to make up the difference.

How to keep your car insurance costs down in 2022

Looking to keep your insurance costs down this year? Here are seven handy tips from Quotezone to help you do that.

1. Check your mileage

Insurance companies use several factors to determine car insurance costs, with one of them being your mileage. The more miles you drive, the more you will pay.

If your driving habits have changed as a result of the pandemic, Greg Wilson, founder of Quotezone, recommends that you notify your insurer because you may be able to lower your premiums.

However, don’t understate your mileage on purpose as this may invalidate your policy.

2. Park in a safe space

Parking your car in a secure place overnight, such as a garage, driveway, or carport, can save you a significant amount of money on your insurance.

Quotezone discovered that motorists who park their cars on driveways rather than on the road can save more than £140 per year, with carport owners saving an even higher £230 on their premiums.

3. Avoid penalty points

Penalty points on your licence can result in higher insurance costs for a number of years. Three points on your licence could see your premiums go up by 5%, while six points could see them go up by as much as 25%.

4. Consider switching to a car with a smaller engine

From an insurer’s point of view, cars with larger and more powerful engines are more likely to be driven faster, potentially leading to incidents of speeding and accidents. They are also more prone to theft and have higher repair bills.

To save money on insurance, consider driving a vehicle with a less powerful engine.

5. Keep modifications to a minimum

Car modifications can bump up your insurance premiums. Therefore, avoid them if you can or keep them to a minimum. If you do make modifications, be sure to inform your insurer to avoid invalidating your policy.

6. Consider black box insurance

Young or new drivers might be able to save significantly on their insurance costs by opting for black box insurance or telematics.

With this type of insurance, your premiums are based on the way you drive. If it’s proven that you are a safe driver, you could be rewarded with lower premiums.

7. Shop around

The competitive nature of the car insurance industry means that it’s always worth doing some comparison shopping to get the best deals. A good place to start is with car insurance comparison sites such as Quotezone, MoneySuperMarket, and Confused.com.

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