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 oftencar finance, the overall cost of driving a car is higher than ever. Here is ourguide on how you can cut insurance costs this year and save some money.
The cost ofyour insurance is fundamentally determined by the risk that providers believethat your driving history, your job, your age, and where you live presents onaverage. Don’t worry just yet though. While these basic determinents cannot bechanged, there are a number of other factors that come into the price of yourcover that you do have control over:
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When it comesto your car, there are three key areas that are sure to affect the cost of yourcover: its value, its engine size, and whether it has been modified.
This is perhaps the most obvious aspect of your carthat will affect your premiums. With expensive cars generally having morecostly parts, the price of repairing it in the event of an accident is sure tobe higher. Similarly, high-value cars are also at a higher risk of theft orvandalism. To compensate for this, providers will always charge more for yourpremiums.
Unlike your car’s value, its engine size will havean effect on premiums due to the increased risk that faster and more powerfulcars present to providers. It is because of their increased speed that, shouldthey be involved in an accident, they are much more likely to do more damage.This ultimately means that providers anticipate higher resultant accident costswhen 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 yourcover. Even for modifications that are purely aesthetic and have nothing to dowith increased performance will generally result in higher premiums. Fromunusual parts to replace, to being more likely to be targeted by thieves,modifications can be incredibly pricey when it comes to cover.
While thecar insurance risk associated with occupation is sometimes obvious, it is notalways clear cut. As a rule of thumb though, if you work in a job that is morelikely to result in extended periods of driving or journeying to unfamiliarareas, this is likely to have an effect on your premiums. Short of changingoccupation, the only way to directly tackle this directly is to go with aspecialist business car insurance provider.
When itcomes to finding cover, there are a variety of options available to you. Hereare our top 12 popular and lesser-known tips on how to get cheaper carinsurance in 2020.
Improvingyour car’s security is an incredibly simple way to reduce the cost of your carinsurance without making any sacrifices on your usage or level of cover. Whereyour car is kept is, in the eyes of insurers, the most important factor when itcomes to your car’s security. Keeping it in a garage or on a drive off a busyroad is sure to be looked upon favourably. Similarly, installing an immobiliseror steering wheel lock may be rewarded with reduced premiums. Not all insurerswill offer a discount for added security, however, so it is worth comparing awide range of providers to find those that do.
Renewing yourpolicy with your current provider is never a good decision. This is becauseinsurers 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 insurersas possible. Switching will almost always lead to savings as insuranceproviders are always looking for new customers.
Whilepaying annually can mean a significant upfront cost for your cover, it can saveresult in significant savings. This is because, when you pay monthly for yourcover, you are effectively taking a loan out with your insurance provider wherethe cost of your monthly cover includes interest. If paying for your carinsurance in one go is not a realistic option for you financially, it is worthconsidering taking out a 0% interest credit card. Doing this means you are ableto pay monthly without paying extra interest to your insurer.
Upping theamount you are willing to pay yourself in the event of an accident will resultin lower insurance costs. While the benefits of this can initially seemattractive, it is important that the excess that you choose is an amount youwill 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 moresignificant financial burden than paying some more overall for your cover.
The amountthat you use your car is a significant risk factor to insurance providers whichis 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 becomeinvalidated if you are found to have driven it more than specified in yourpolicy.
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 willprobably already be aware of the differences between fully comprehensive, thirdparty, and third party, fire, and theft policies, but it is worth properlyconsidering which suits your requirements best. If, for instance, you have anolder car that didn’t cost much in the first place, it might be wise to opt fora third party, fire, and theft policy instead. While you might expect thirdparty only to be the cheapest option due to being the least extensive coveravailable, this is not always the case. That’s why it is always worth checkingother policy types alongside third party only if you are looking to makesavings.
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.
Providingyou are a careful driver, a telematics car insurance policy can lead tosignificant savings. By monitoring your driving behaviour, such as youracceleration and braking, this kind of policy is directly reflective of yourrisk on the road. If the black box is fitted within your car rather thanincluded within your policy as a mobile phone app, it is also able to trackyour car in the event it is stolen.
If the owner of the car is not the same asthe registered keeper, quotes can be significantly higher than usual. Shouldyou be driving a company car, for instance, or you own the car but it is alsodriven by your children, this is likely to result in higher premiums.Conversely, however, if you are a new driver, having a more experienced nameddriver on your policy could improve the cost of your cover. It is importantthat any named drivers do actually drive the car. If you are found to havenamed a driver on your policy that does not use the car, any future claimscould be made void in the event of an accident.
Whilebuilding up your no claims discount isn’t by any means an instant solution forcheaper insurance, it is guaranteed to save you some money. According toMotoring Research’s noclaims 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 withsavings made elsewhere, this kind of discount can help make your quoteincredibly cheap. This is why, when it comes to minor damage to your car, itmay 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.