Finding low cost car insurance is not as simple as many drivers assume. Estimates suggest that around one in three drivers auto-renew their car insurance whenever it comes due, without checking for a better deal.
The higher the proportion of drivers who auto-renew, the more temptation there is for insurance providers to provide worse and worse deals for renewal. If drivers aren’t checking, it’s good business sense to raise premiums and excess.
This doesn’t just leave careless drivers paying more for their insurance; it can also mean that they find themselves locked into a monthly premium they hadn’t budgeted for, forcing them to cut spending elsewhere in their life to keep their car on the road.
So, what can be done to achieve low cost car insurance?
Cheaper cars cost less to repair, and this means insurance policies for them will often have lower premiums. This is especially true if the car is also known to be reliable.
If you’re a new driver, or you’re considering a change of car, it’s worth researching cheap hatchbacks from reliable brands. Some of the cheapest cars to insure include:
Many modern hatchbacks also put fuel efficiency first, so the two most significant ongoing costs of running a car are much lower for drivers with these cars.
If you’re not a new driver, you probably have a pretty good idea how far you drive in a given year. For drivers who mostly use their cars to get around their home town, especially if their commute is relatively minor, limited mileage car insurance can be a great way to cut costs. Most limited mileage policies have a cap of around 5,000 miles per year – so do be honest with yourself about how much you’ll drive before you sign up.
Black box insurance, AKA telematics insurance, requires you to attach an aircraft-style ‘black box’ to your car which monitors your location, direction of travel, speed of travel, etc. It can be used to prove fault in the event of a collision and is offered with lower premiums. It’s too early to be certain, but indications are that most drivers who agree to black box insurance are involved in fewer accidents, which will drive down the cost of these policies further in future.
Using online comparison tools like the one above is still the most effective and certainly the quickest way to find low cost car insurance for most drivers. It’s usually possible to find the cover you need at a cheaper price than you have been paying or expect to pay. Taking the time to compare policies and pick out the most appropriate one will pay for itself over and over, with every premium you pay.