With the average cost of motor cover coming in at just over £642 per year across all age groups according to Statista’s 2019 report, it is well worth properly researching how to get cheaper car insurance in 2020.
With additional fuel costs, MOT, tax, and often car finance, the overall cost of driving a car is higher than ever. Here is our guide on how you can cut insurance costs this year and save some money.
The cost of your insurance is fundamentally determined by the risk that providers believe that your driving history, your job, your age, and where you live presents on average. Don’t worry just yet though. While these basic determinents cannot be changed, there are a number of other factors that come into the price of your cover that you do have control over:
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When it comes to your car, there are three key areas that are sure to affect the cost of your cover: its value, its engine size, and whether it has been modified.
This is perhaps the most obvious aspect of your car that will affect your premiums. With expensive cars generally having more costly parts, the price of repairing it in the event of an accident is sure to be higher. Similarly, high-value cars are also at a higher risk of theft or vandalism. To compensate for this, providers will always charge more for your premiums.
Unlike your car’s value, its engine size will have an effect on premiums due to the increased risk that faster and more powerful cars present to providers. It is because of their increased speed that, should they be involved in an accident, they are much more likely to do more damage. This ultimately means that providers anticipate higher resultant accident costs when calculating their quotes.
While modifying your car can be an exciting prospect, it will almost always result in a significant increase in the price of your cover. Even for modifications that are purely aesthetic and have nothing to do with increased performance will generally result in higher premiums. From unusual parts to replace, to being more likely to be targeted by thieves, modifications can be incredibly pricey when it comes to cover.
While the car insurance risk associated with occupation is sometimes obvious, it is not always clear cut. As a rule of thumb though, if you work in a job that is more likely to result in extended periods of driving or journeying to unfamiliar areas, this is likely to have an effect on your premiums. Short of changing occupation, the only way to directly tackle this directly is to go with a specialist business car insurance provider.
When it comes to finding cover, there are a variety of options available to you. Here are our top 12 popular and lesser-known tips on how to get cheaper car insurance in 2020.
Improving your car’s security is an incredibly simple way to reduce the cost of your car insurance without making any sacrifices on your usage or level of cover. Where your car is kept is, in the eyes of insurers, the most important factor when it comes to your car’s security. Keeping it in a garage or on a drive off a busy road is sure to be looked upon favourably. Similarly, installing an immobiliser or steering wheel lock may be rewarded with reduced premiums. Not all insurers will offer a discount for added security, however, so it is worth comparing a wide range of providers to find those that do.
Renewing your policy with your current provider is never a good decision. This is because insurers will always charge more each year wherever they can. That’s why, should your renewal be coming up, it is always best to compare as many insurers as possible. Switching will almost always lead to savings as insurance providers are always looking for new customers.
While paying annually can mean a significant upfront cost for your cover, it can save result in significant savings. This is because, when you pay monthly for your cover, you are effectively taking a loan out with your insurance provider where the cost of your monthly cover includes interest. If paying for your car insurance in one go is not a realistic option for you financially, it is worth considering taking out a 0% interest credit card. Doing this means you are able to pay monthly without paying extra interest to your insurer.
Upping the amount you are willing to pay yourself in the event of an accident will result in lower insurance costs. While the benefits of this can initially seem attractive, it is important that the excess that you choose is an amount you will actually be able to cover if you need to repair or replace your car. Selecting a voluntary excess that is unrealistic may actually result in a more significant financial burden than paying some more overall for your cover.
The amount that you use your car is a significant risk factor to insurance providers which is why limiting your useage will result in cheaper cover. Once again, however, it is important that you choose a realistic amount as your claim can become invalidated if you are found to have driven it more than specified in your policy.
According to MSE’s investigation into the optimum time to buy car insurance, it was found that somewhere between 20-26 days results in the cheapest quotes. It isn’t always possible, of course, to time things this neatly but, should you know that your policy is coming to an end soon, it is worth noting down in your diary this 6-day window and trying out our comparison tool. After this period, prices do tend to rise again so it is worthwhile to begin comparing earlier in this window where possible.
You will probably already be aware of the differences between fully comprehensive, third party, and third party, fire, and theft policies, but it is worth properly considering which suits your requirements best. If, for instance, you have an older car that didn’t cost much in the first place, it might be wise to opt for a third party, fire, and theft policy instead. While you might expect third party only to be the cheapest option due to being the least extensive cover available, this is not always the case. That’s why it is always worth checking other policy types alongside third party only if you are looking to make savings.
Taking an advanced driving course, such as IAM RoadSmart, RoSPA, or the Pass Plus Scheme will be rewarded with reduced premiums by many insurers. While these courses can be quite pricey, the savings can often outweigh the costs, particularly for inexperienced drivers. Before going on one, however, it is worth experimenting with different advanced driving course accreditations when using our comparison tool. This can help gauge whether the savings are ultimately worthwhile.
Providing you are a careful driver, a telematics car insurance policy can lead to significant savings. By monitoring your driving behaviour, such as your acceleration and braking, this kind of policy is directly reflective of your risk on the road. If the black box is fitted within your car rather than included within your policy as a mobile phone app, it is also able to track your car in the event it is stolen.
If the owner of the car is not the same as the registered keeper, quotes can be significantly higher than usual. Should you be driving a company car, for instance, or you own the car but it is also driven by your children, this is likely to result in higher premiums. Conversely, however, if you are a new driver, having a more experienced named driver on your policy could improve the cost of your cover. It is important that any named drivers do actually drive the car. If you are found to have named a driver on your policy that does not use the car, any future claims could be made void in the event of an accident.
While building up your no claims discount isn’t by any means an instant solution for cheaper insurance, it is guaranteed to save you some money. According to Motoring Research’s no claims discount report, a one year period without a claim saves 12% on average, while a two year no claims discount comes in at around 19%. When combined with savings made elsewhere, this kind of discount can help make your quote incredibly cheap. This is why, when it comes to minor damage to your car, it may work out better in the long run to get it repaired without making a claim.
While being aware of the various factors that go into the price of insurance and how to navigate them is important, it is only by extensively comparing quotes that you can find a great deal. With over 100 insurers to compare, Insuro results in car insurance quotes of less than £350 for over half of its customers. Fill in our fast and simple comparison form below and begin receiving quotes in minutes.