If you’re looking for car insurance, take a look at our tips to getting the most out of your money
It’s a sad fact, but the cost of living is going up. Crash economies due to pandemics and sanctions as well as the scary state the housing market is in, has caused us all to go through the couch cushions for some extra coins. At the very least, a lot of us are readdressing our budgets, looking for things we don’t need to be paying for and ways we can save on the stuff we do need.
One such area is car insurance. If you play your cards right, you can get a lower price for your car insurance, saving you a bit of spending money every month. If that sounds like you and you’re looking for car insurance, take a look at our tips to getting the most out of your money.
Compare, compare, compare
The first and most basic rule of getting a good price on anything is to not go with the first one you see. Whether it’s car insurance, a mortgage, a new phone, etc. shop around until you find a good price.
Luckily, this is made easier with the help of price comparison websites, and there is plenty for insurance that you can choose from. You simply need to put your details into the site and watch it hand out a quote from the leading insurance companies in the country. You’ll get the cheapest option up front to pursue, but there are extra elements to your policy that could affect your price, so read on to find out what can make things easier.
Third party isn’t always cheapest
Third party insurance is the mandatory minimum coverage you need to be legally allowed to drive. If you are caught driving without insurance, you could face fines, license suspensions, and vehicle impoundment.
Third party insurance means that if you were to get into a scrap, any claims against you are covered. This means that you are not the priority, but the person with the claim against you. They are getting their medical and law bills covered, but not at your expense.
However, you shouldn’t assume that because it is the most basic package, and mandatory, that it is the most affordable option for you. You can get coverage that will cover damages to you and your vehicle that might well turn out to be cheaper, probably in an attempt to get more full coverage. So, tweak your search to see what coverage you can get for less.
Consider your extras
There are lots of extras added onto insurance policies, including courtesy car cover so you can get around between breakdowns, legal cover if you need to dispute, and windscreen cover, should a stone aim straight for you and leave a chip.
A lot of the time, these are considered extra, and you will have to pay for them on top of your policy, but sometimes they are included as part of your policy. So, you have a choice, that starts with really thinking about whether you need these extras or not. If you’ve decided you’d rather have them, you can look around for a policy that has the ones you want included, or if you decide you can do without, you can chop them off of a more expensive policy.
Like a lot of monthly repayments, the total of your car insurance can be brought down if you decide to switch to annual payments. Change your search filters to annual payment when on comparison websites and compare them to 12 monthly payments to see where you can save.
Of course, the monthly option is popular because most of us don’t tend to have a grand or so just waiting to be spent on anything, so you can make things easier by using a 0% purchase credit card. Pay the insurance off with the credit card and repay the credit card with no interest on a monthly basis. That way you can spread the cost over a number of months, initially interest free.
Increase the excess
You can lower the price of your monthly repayments by increasing the excess on your policy. This is the amount you agree to put towards the cost of the claim you choose to make about your car. But make sure you think about this one. You have to either be sure that you can afford the amount in the excess, or that you will never use it. It’s a good option if you have the skills and means of doing smaller repairs out of your own pocket, but should you get in a wreck that writes off your vehicle, you’re going to have to put that excess towards a new car.
Think about your job title
Before we go on, we will point out that providing false information on an insurance policy will result in your claim getting rejected, but you can tweak the truth just a little bit. What we mean is to carefully word your job description. Call yourself a building contractor rather than a construction worker, and you just might see some lower premiums.
Lower the risk
Let your insurance know where your car is going to be when you’re not using it. They will usually ask this in the application process, but it’s worth mentioning that some areas are considered safer than others to the insurer, and therefore lower the risk and your premiums. Keeping your car in a lock garage or on your own drive are considered safer as they are less likely to be stolen or vandalized and be sure to mention any security measures like immobilizers, tracking devices, home security cameras and alarms in the car. All of these lower the risk to the insurer and therefore the premiums to you.
Consider the dreaded black box
Sure, no one likes it, but it’s there for a reason. The black box can be installed in your car, which will record your driving habits. It serves the dual purpose of rewarding safe drivers with lower premiums, so you might find yourself watching that speed more often if you know that it will raise your insurance payments. But it does feel like having a side-seat driver on every ride.