Techniques for Reducing Your Car Insurance Rates

Car insurance can be a significant annual expense, costing £562 a year on average. The price you are quoted can depend on everything from the vehicle you drive to where you park it overnight.
While you cannot control every factor insurers choose to account for, there are several practical steps that may help reduce the cost of your cover. Some involve changing the way you buy insurance, while others are about making your vehicle less of a risk to insure.

Improve your vehicle security
Vehicle theft is an obvious concern for insurers, particularly when covering expensive, desirable or high-performance cars. Adding extra security can therefore be worth considering. An insurance-approved vehicle tracker allows a stolen vehicle to be located and can assist with its recovery. Some insurers may even require an approved tracker before they will provide cover for certain vehicles.

If you are installing one for insurance purposes, check exactly what your insurer requires before buying. Thatcham-certified tracking systems, including S7 and S5 options, are great installations for negotiating with insurance providers.

A tracker will not automatically reduce every driver’s premium, but improving security can affect how an insurer assesses the risk associated with your vehicle.

Compare quotes before renewing
It can be tempting to simply accept your renewal price, particularly if you have been with the same insurer for several years. However, comparing car insurance policies gives you a clearer idea of what other providers are willing to offer. Look beyond the headline price too. A cheaper policy may have a higher excess or provide less cover, so make sure you are comparing similar policies.

Starting your search before your existing policy expires also gives you time to consider your options rather than making a rushed decision.

Think carefully about your mileage
Insurers normally ask how many miles you expect to drive each year. If your circumstances have changed, perhaps because you now work from home more frequently or have a shorter commute, make sure the mileage on your policy still reflects your genuine usage.

Do not deliberately underestimate it to secure a cheaper quote. The information you provide should always be accurate.

Consider increasing your voluntary excess
Your excess is the amount you contribute towards a claim. Choosing a higher voluntary excess can sometimes reduce the cost of your premium.

There is an important catch, though. You need to be able to afford that amount if you make a claim. Saving a relatively small amount on the policy is unlikely to be worthwhile if you would struggle to pay the excess following an accident.

Pay annually if you can
Paying monthly can make car insurance easier to budget for, but insurers may charge interest for spreading payments across the year.

If you can comfortably afford to pay the full premium upfront, compare the total annual cost with the monthly payment option before deciding.

Build up your no-claims discount
Driving carefully and avoiding claims can help you build a no-claims discount over time.
There is no single trick that guarantees cheaper car insurance. However, shopping around, keeping your information accurate, reviewing your mileage and improving vehicle security can all help put you in a stronger position when it is time to get your next quote.

For more insights into the world of car insurance and trackers, check out our blog.