There’s no denying the importance of car insurance – and with government legislation dictating that all drivers are obliged to be covered, it’s no surprise that the high demand for policies can leave us despairing at the incredible cost of car insurance. The recent increase in compensation claims has left car insurance companies with no other option than to dramatically raise their prices – meaning that, for some drivers, car insurance can come to an annual cost of over £2,000!
The car insurance market is a particularly saturated one – making it all too easy for customers to miss out on more affordable options. So, does this mean the end of the road for people with minimal driving experience and without a no-claims bonus? We don’t think so. Competitive car insurance deals may seem hard to find, but we believe every driver should be able to get their hands on a good deal. Car insurance shouldn’t leave you feeling bruised which is why, in today’s post, we’ll be talking you through five ways to find cheap car insurance.
1. Cut the costs
While the premium you’re initially quoted may seem expensive, changing your payment method can significantly lower the cost. Although the lump sum may seem like a lot to pay out at one time, if you’re able to, paying your insurance annually could save you hundreds. The interest charges on monthly installment plans start to add up, meaning you could end up paying £125 more for a £700 policy.
Although comprehensive cover isn’t often much more expensive than third party, fire and theft, there are still some add-ons that you don’t necessarily need to pay for. Consider whether another policy covers you in the event of a breakdown, or whether you’re prepared to risk driving without legal expenses cover.
Providers are essentially looking to avoid paying out the full cover amount so, for cheap car insurance quotes, think about adding a voluntary excess to your policy. This is added to the compulsory excess, and means that you’ll receive less money back in the event of making a claim. This is really appealing to insurers – so the higher the voluntary excess is, the more likely you are to be offered cheap car insurance.
2. Reduce the risks
Taking out a named policy will begin to earn you no-claims bonus, provided you don’t end up running into any accidents and claiming with your policy provider. The no-claims discount is based on the idea that drivers with fewer claims pose less of a risk – but every driver has to start somewhere, and taking out a named policy without no-claims can be pricy. Adding additional drivers with a good history can significantly lower your quote, and they don’t even have to drive the vehicle all that often.
To reduce the risk of your vehicle being stolen or bumped into, fit Thatcham-approved alarms and immobilisers, and park in a garage or driveway if you can. Low insurance group makes and models are less expensive to repair, meaning insurers can offer you a lower premium. Be accurate with your mileage, too – if you have low annual mileage, your premium will be lower, but underestimating your mileage can lead to invalidated insurance.
Proving that you’re a low risk driver by taking additional driving courses can also be a handy way of significantly reducing that premium. The more qualified a driver you are, and the fewer points and insurance claims you have, the more easily you can demonstrate to insurers that you’re a lower-risk customer. Tracking devices that monitor your driving will also reassure your policy provider about your driving competence, so it may be worthwhile to look into this option.
3. Compare the market
With a number of price comparison websites available, it couldn’t be easier to shop around to find the best car insurance companies. Comparing prices online will show you the wide range of prices and policy providers out there and help you identify a company that would be willing to insure you. The car insurance market includes providers dedicated solely to offering cheap car insurance for women – so looking around first can be really beneficial. Gender can no longer be taken into account by car insurance companies, but these selective policy providers overcome this issue by offering car insurance for women only. Put some time into researching the providers so that you can find the best deal – as well as taking a look at insurers and brokers that don’t feature on comparison sites.
Without a no-claims bonus, cheap car insurance for young drivers can be hard to find. Shopping around for policy providers that specialise in car insurance for young drivers can lead to great savings – and although you may be subject to a tracking device, these companies are far more likely to understand that driving at unsociable hours is sometimes unavoidable.
4. Read the fine print
Don’t get caught out on the small print. Make sure you read over the Key Facts and Policy Wording documents to double check that you’re getting the right car insurance cover. When renewing a policy, take a look at the terms and conditions to see whether the insurer has changed anything. As minor as the changes may be, you could be left paying over the odds or even on the wrong side of the law if your policy isn’t valid.
5. Negotiate a discount
Haggling for a hefty discount doesn’t have to be as difficult as it seems. The majority of policy providers prioritise being as competitive as possible, so get in touch with car insurance companies to negotiate a discount. It could be as simple as calling your current insurer and enquiring as to whether they can beat your best quote.
Thanks to our comprehensive guide to finding affordable car insurance deals, you can rest assured that it won’t be the insurance stopping you from getting back on the road again.
You could drive off the forecourt fully covered sooner than you think with The Car Loan Warehouse! Find out how much you could afford to borrow with our car finance calculator, or apply for car finance now to get approved as soon as possible.
