6 Ways To Reduce Your Car Insurance In 2020
Car insurance premiums can start to add up, especially if you're a new driver. If you have been with your car insurance provider for several years, you're most likely paying a loyalty penalty. Check out the best 6 ways to reduce your car insurance below to make sure your bill is fair!
1. Pay Annually
This may seem like a burden for some people financially, however if you can afford to pay in a lump sum at the start of your contract, rather than monthly direct debits, this will usually work out cheaper. Many insurers build in an interest rate into a direct debit, this means you could save up to one months worth of direct debit payments if you pay annually.
2. Add an older named driver
Adding an older named driver to your policy is another way to save money on your car insurance. This is because the insurance company will presume that for a percentage of the time the car is being driven by an older driver. However, make sure the policy holder is the main driver. Using an older person as the main driver on a policy meant for a newer driver is called ‘Fronting’ and is illegal.
3. Consider a black box
Black box insurance may be an option for new drivers. This is due to higher premiums set by insurers for young and newly passed drivers. A telematics box is fitted under the dashboard, logging data of the drivers performance. This will include acceleration, speed and handling. Good results derived from safe driving can mean a discounted premium.
4. Lower your mileage
The drivers estimated annual millage plays a part in their insurance premium. The lower the millage, usually the lower the premium. Drivers can car share, or look to cycle or walk for shorter trips. However, if your insurer finds out you have been untruthful about your annual millage, they may not pay out on certain claims.
5. Increase voluntary excess
There are two types of excess part of an insurance policy. Compulsory and voluntary. The compulsory excess is set by the insurance provider and is mandatory when paying out for a claim. The voluntary excess is what the driver is willing to pay in the event of the claim. You can set your voluntary excess at zero, however your premiums will be higher. We would suggest setting your voluntary excess at around £200, however you will be forced to pay it, so don’t set a higher excess if you cannot afford it.
6. Always check how much you should be paying
In 2019, 6 million home and car insurance policyholders were being overcharged by an average of £200 - just because they have been loyal customers and hit with annual price rises. Elderly and low income people are worst hit and some people are being charged £1000 more than they should be by unscrupulous insurance companies.
The most important and obvious way to save money is to check your car insurance bill to see if it’s fair. After this you can just sign up to a newer and cheaper deal or try to negotiate with your car insurance provider. To see how much you should be paying, just click the button, it only takes a couple of minutes and could save you £100's.
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