25th January 2019
Simple ways to cut your car insurance premium
People are still way overpaying for their car insurance, here at Cover4Insurance we have put together a simple list of ways that you could save money off your car insurance premiums.
- Add an extra driver:
If you add an additional driver, this can help you reduce your premium if that person has a clean driving record over a number of years. For example; if you’re a young driver you could add a parent. Please note: that you will still need to declare yourself as the main driver otherwise you would be committing a criminal offence known as “Fronting”. It also needs to be someone that could reasonably drive your car.
“Fronting” – Where you list an experienced driver as the main driver when that will not be the case. For example: Where a parent lists a child as an additional driver on the car rather than the main diver when the child will be the person that uses the vehicle the most.
- The date you renew your car insurance
According to an MSE Investigation the best date is 21 days before your renewal date after studying 18 million renewal quotes
They found that the price drops between 30 and 21 days and then starts to rise again until the date of renewal. This apparently is not an exact science. The thought process is that the people that leave there insurance till the last minute are riskier drivers so they charge them more
- Type of cover you choose
It will depend on the insurer so, best to compare, as comprehensive can work out cheaper than third party even though it is better cover. Because some insurers will deem you as better risk as you have selected comprehensive cover rather than third party.
- Never auto renew
Car insurers use a practice known as “Price walking” – This is where Insurers get you in on a cheap deal and then gradually increase the premium each year by a small amount and hope that the amount is smaller enough that you won’t shop around. So, play the insurers at their own game and shop around each year.
- Pay for your insurance in one go
Car insurance is normally a loan where they charge you interest on that loan. The interest rate does vary widely between insurers with the APR being as high as 40% according to a Which report. It might actually work out cheaper if you use a credit card with a lower interest rate than paying monthly via the insurer.
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