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How to save money on car insurance

If you drive a car, you must have car insurance but it can be tricky to find a policy that gives you the protection you want at a cost that fits your budget. At mustard.co.uk, we don’t believe you should sacrifice cover for cost so here are our top tips to save money on your car insurance.

Compare all types of policy

In the past, third party only policies were usually the cheapest option while comprehensive cover was the most expensive. That’s not always the case now so don’t assume third party insurance will cost less, opting for a comprehensive policy instead could actually save you cash.

Pay upfront

Paying for your policy upfront is the cheapest way to buy cover. Monthly instalments might help you spread the cost but it often means paying interest so you’ll pay more over the course of the year.

Build your no claims bonus

A no claims bonus will give you a discount off your premium. The more claim free years you have, the bigger your bonus and the discount. In fact, five years worth of no claims could reduce your premium by around 60% so think carefully about what you claim for.

Choose your car carefully

Your car plays a big part in the cost of cover. As a general rule of thumb, the bigger, more expensive and powerful your car, the more you’ll pay for insurance. So, if you’re serious about saving money, it’s a good idea to choose a smaller, less expensive vehicle.

To get an accurate idea of cost, check to see what insurance group a car sits in. There are 50 groups altogether and the higher the number, the pricier your premium is likely to be.

Keep your car secure

Secure cars generally cost less to insure. If you’re able to keep your car in a locked garage, the good news is that this will have a positive impact on your premium. If you don’t have a garage or off-road parking, it could be worth investing in an approved security device, for example, an immobiliser. Fundamentally, the harder it is to steal your car, the more competitive your premium will be.

Increase your excess

Your insurance policy will come with an excess, this is an amount you need to pay for a claim to go ahead. There are two types — compulsory excess which is set by your insurer and voluntary excess which is an amount you agree with them. Increasing your voluntary excess can lower your overall premium. Unfortunately, there isn’t a lot you can do about changing the compulsory excess element so if this is particularly high, it could be time to switch insurer.

Opt for a telematics policy

Telematics insurance (also known as black box insurance) monitors the way you drive and records information about your speed, acceleration, braking and cornering. Insurers will use that information to calculate your premium.

Black box insurance is often sold as a way for young drivers to keep insurance costs down as premiums are based on how individuals drive rather than industry statistics. However, telematics isn’t exclusively for young drivers so regardless of age, it could help you save money on your car insurance.

Take an advanced driving course

Some insurers offer discounts if you have advanced driving skills. If they do, they’ll usually have a list of accredited schemes that will entitle you to money off your premium if you pass. Courses typically focus on improving your road handling and observation skills as well as how to drive in poor weather conditions.

Be as accurate as you can

Accuracy can help you save money in several ways. The first is when it comes to mileage — the fewer miles you drive, the less likely you are to be involved in an accident and make a claim. This reduced risk will be reflected in lower premiums. It’s important to bear this in mind when you’re asked how many miles you cover each year as overestimating can push you into the insurer’s next price bracket.

If you drive very few miles, it might also be worth considering a low mileage policy. These are specifically aimed at anyone driving less than the average and could save you even more. You should also be accurate when it comes to specifying your car’s class of use. This is simply how you use your car (for example, social, domestic, pleasure, commuting). Always choose the most accurate reflection of how you use your car. Adding other classes of use, for instance business use, can increase your premium unnecessarily.

Never auto renew

Auto renewing your policy with the same insurer might be convenient but you could end up paying more. Always compare quotes when your policy is about to end to ensure you get the best deal.

Avoid modifications

Modifications typically increase your car insurance because it makes your car unique and potentially more expensive to repair. The only modifications that might save you money are those that improve your car’s security.

Try a variation of your job description

Different job titles affect the cost of your insurance so it’s worth trying out variations, for example headteacher vs. teacher. Needless to say, the title you choose needs to be an accurate reflection of what you do otherwise you risk invalidating your policy.

Add a named driver

Adding a more experienced named driver to your policy can help lower your insurance. Be careful not to fall into the ‘fronting’ trap. This is when you list an occasional driver as the main driver in order to get cheaper cover – this is insurance fraud.

Buy only the cover you need

You’ll often have the chance of adding on all sorts of extras but it can push up premiums. Focus on the cover you need instead of the ‘nice to haves’.

For more information on how you could save money with mustard.co.uk‘s cheapest price guarantee and more, get a quote today.