5 Ways To Reduce Your Car Insurance Costs

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Written by Michael Foote, Insurance and Finance Expert

Michael Foote is the founder of Quote Goat and has over 13 years experience working in the finance, insurance and currency sectors. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city for a number of firms including HSBC.

To start with some good news: car insurance costs in 2018 have fallen for the first time in three years. As for the bad news: this drop is only slight, and experts warn that prices are still at record-high levels.

With insurance costs being so high, it’s more important than ever for car owners to compare car insurance quotes. Motorists are not only paying more on car insurance than ever before, many are spending hundreds of pounds more than they need to by simply selecting the wrong insurance company.

Fortunately, there are a few things drivers can do to help reduce the costs of their car insurance premiums.

  1. Compare Insurers

Shopping for insurance can be a painful, longwinded process, so many drivers will tend to give up and take one of the first quotes they get. Prices for the same cover can vary drastically between insurers, so it is important to compare car insurance to find the cheapest deal possible. Through policy auto-renewal, it is estimated that Britons are wasting a collective £652.5 million a year, so make sure you check your options.

  1. Named Drivers

You can reduce your costs by adding an experienced, low-risk driver to your policy, but unfortunately there are two sides to this coin. Younger, less-experienced drivers will likely increase the cost of your premium as they are much more of a risk to insurers. If they don’t drive your car regularly, it is wise to add them temporarily on an ‘as and when’ basis, rather than keeping them on the policy all the time.

  1. Paying Up Front

Paying your cover on a monthly basis will see you paying more overall compared to paying one lump sum. Obviously, monthly charges are a common form of payment as few can afford large one-off payments; but if you are able to, you could save up to 10%, or even more, on your total costs.

  1. Black Box

Car insurance without a black box will be more expensive, as insurers are eager for compliance in tracking drivers’ habits so that they can better assess your risk. Insurers can tailor your costs accurately through using a black box, with most offering discounts for those who decide to sign up to a telematics policy.

  1. Driving Habits

How you use your car on a daily basis influences the cost of your premium. If you don’t use your car to commute to work, deselecting the commuting option can drive down the price. If you only drive a few thousand miles a year, reducing your mileage cap on your policy can also help ease the cost. Always assess the way you use your car, so you don’t end up paying more than you should.

Taking the time to compare car insurance quotes before committing to one in particular. Taking extra time may seem frustrating, but it can help save drivers hundreds of pounds a year in the long-run.