×


Home About Contribute Media Kit Contact Sign In
×







.


Finance Industry Opinion

What factors must you bare in mind to reduce your car insurance?


What factors must you bare in mind to reduce your car insurance?


"By choosing to pay a higher voluntary excess, you will lower the cost of what the insurer will have to pay towards the claim. "
Cliverton



Nowadays, there is insurance for everything, even dog grooming insurance and there are ways to get premiums down but car insurance is the most competitive.

In Britain however, it’s reported that there are over one million uninsured drivers on our roads, which in turn increases premiums for those who do insure their vehicles.

It’s no surprise that for many people, a yearly payment is just too big of a lump sum, so they must break it down into monthly payments. But, are you aware of all the ways you can potentially reduce your insurance outlay?

As well as this, there are also many extra charges that you may face as a car owner, including MOT charges, road tax and fuel allowance for things like your daily commute. There are also the hidden costs to consider if your vehicle unpredictably breaks down.

Here, with the help of Lookers, we look at the biggest contributing factors and how exactly you can lower your car insurance!

Make sure your credit score is good

Having no claims bonuses are obviously a great help when it comes to lowering the cost of your insurance. But, were you aware that your overall credit score can also have a huge impact on your car insurance? That’s because insurers take in the impression that if you’re responsible in your personal life and with other financial situations, you are less likely to file a claim.

Reduce coverage on older cars

While you may be tempted to always choose comprehensive cover for your vehicle, be aware that choosing this coverage for particularly old vehicles may not be cost effective. For example, if you buy one of the many used cars for sale and your insurance values the vehicle at £1,000 then you’re involved in a crash, there’s a possibility that your insurer will just write your vehicle off.

Therefore, if your insurance is costing approximately £500 for comprehensive cover, it may not make financial sense to purchase it.  Comprehensive cover is most cost effective for those with new cars, or cars that have held their value.

Install a black box

Some insurers will lower the annual cost of your cover if you fit a small box in your car that can help insurers to track your driving methods. This will include aspects such as braking and speed via GPS, as well as taking into account the time of day you drive.

This method is also known as telematics insurance and is effective for young and inexperienced drivers, those who have a low annual mileage, or older drivers who want to prove that they’re safe behind the wheel.

Increase your excess

Your premiums are based on how much your insurer is likely to pay out if you claim. By choosing to pay a higher voluntary excess, you will lower the cost of what the insurer will have to pay towards the claim.

Therefore, this can lower your overall insurance. However, you must ensure that you choose an excess you will be able to afford and make sure the excess doesn’t exceed the overall value of your vehicle.

Get multiple quotes

It goes without saying that it’s important to consider your options. Like any service, you should do your research. Many insurance companies will attempt to ‘better’ the offer on the table by a different provider, so be sure to know what you want and don’t just settle with the first, or your current provider.  However, remember that cheaper isn’t always better. Check what is included before agreeing to a cheaper cover.  

Add others onto your insurance

It may seem strange that more drivers being named on your insurance will bring down your costs, but that’s the case for many quotes. This is because it helps the insurer tie more people into their service. This works well for younger drivers who would usually be charged an extortionate amount. Being named on their parents’ insurance can help reduce their outlay significantly.

While it’s a necessity to be insured when on the road, you don’t have to pay over the odds to do so. Following the above guidelines can help you reduce your overall payments — leaving you with extra money to spend elsewhere.

.


Finance Business News - Financial adversity is at the forefront of many retail SME leaders agenda.


How Retail SMEs Can Transform Their Finance Department After a Pandemic

Finance Business News - Entering a flash recession, with signals the UK economy is already on the recovery following the financial difficulties of the coronavirus pandemic, there s never been a more important time to secure additional investment for SMEs to help continue growth for their business.


5 Types of Investments That Will Help Fund Your SME

Finance Business News - Savings and loans provider Manchester Credit Union has reached a milestone of 12.5million savings by its Mancunian members as it celebrates its 30th anniversary.


Manchester Credit Union celebrates 30th anniversary as savings pass £12.5M

Finance Business News - MMA founder Martin Bown initially set up the group, that meets once a week via Zoom, in March 2020 to offer free financial advice to firms during the pandemic. The network really took off and at the height of the first lockdown, around 30 business owners dialled in to access advice and talk through their concerns.


Yorkshire cloud accounting firm revives Covid-19 business support group

Finance Business News - The Profit Mindset aims to give small to medium size businesses the four basic principles of how to get to grips with the finance side of their business to help them become more profitable even during the current economic crisis.


New book teaches businesses how to profit and grow

Finance Business News - Although lockdown has hit many industries across the world, some businesses have managed to remain somewhat operational, with supply and demand still existing for some products and services.


Perils of Efficiency Procuring Supplies During a Crisis






Ten Times Ten

We transform your bright ideas into brilliant digital products.