Tips for Reducing Car Insurance Premium

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How to Reduce Car Insurance Premium

Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.

Just when you thought 2020 couldn’t get any worse, it looks as though car insurance premiums are set to increase and yes, you guessed it, it’s all down to Covid. That’s because with so many people reluctant to use public transport, many are now choosing to travel in their vehicles instead, so with an expected increase in accidents due to more cars on the road, unfortunately your insurance premium is likely to climb.

But although it’s frustrating when our outgoings increase, there are ways you can make substantial savings on the cost of your insurance. Most of them are straight-forward and require minimal effort, so to make your insurance more affordable, here’s how you can make some much-needed savings on your premium in these difficult times.

Look after your no-claims-bonus

When insurance providers give you a quote, they base much of their calculations on your ability as a driver. If you’ve demonstrated you’re a competent driver by having no claims made against you over a number of years, the insurance provider will see you as a safe bet, which will be reflected in the cost of your premium.

While having a crash can be disastrous and cause your insurance premium to jump up suddenly, you can actually protect your no claims bonus meaning even if you cause an accident your discount won’t be affected. Obviously, this comes at a cost so be sure to weigh up whether it’s worth it or not. If you only have a year or two then you may be better waiting, but if you have over 5 years then you should seriously consider protecting them as a minor bump could cause your premium to increase considerably.

Tip: If you lost you no claims bonus, read our guide about finding cheap car insurance without a no claims bonus.

Tweak the excess

When you take out a policy, increasing the voluntary excess that you’re willing to pay in the event of an accident will reduce the cost of your overall premium. Don’t get carried away though, as it may cost a small fortune in the event you have an accident and need to claim.

Go fully comp

Surprisingly, these days a fully comprehensive policy is usually cheaper than a third-party only insurance policy, which was traditionally the lowest-priced cover you could buy. So, with a fully comp policy, not only will you get the best cover, but you could also pay less for the privilege.

Increase car’s security

If your car has a poor security system, then this could be one of the things driving up the cost of your insurance premium. Although purchasing alarms and immobilisers may come with an initial cost, over time they should become an investment as the cost of your cover should decrease as your vehicle is at less risk of being stolen. You can work out whether it is worth the initial investment by checking the effect on your premium price when you run a quote.

Pay annually

Paying all of your insurance premium up-front rather than monthly can save you a few hundred quid, as you won’t be borrowing from a third-party finance company who will always charge interest.

Shop around

Many motorists make the mistake of renewing with their current insurance provider without checking the market first. This is a huge mistake as you can save literally hundreds by comparing car insurance, and much of the time it takes no more than a few minutes to receive your quotes.

At Quote Goat we compare car insurance deals form dozens of providers to bring you a tailored selection of quotes that suit your needs. For savings on some of the market’s best policies, compare with Quote Goat today!

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