How To Save Money On Vehicle Insurance
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With the cost of living increasing, you may be looking at more ways than ever to save on your household bills. While many types of insurance are a legal requirement, that doesn’t mean we have to pay top dollar for them.
If you’re anything like us, then you’re probably really starting to feel the pinch. Increases in the cost of food, fuel, utilities and national insurance have left many families struggling to afford even the basics.
While some types of insurance are optional (life insurance for example is great to have) for others such as your home or car, it’s a legal requirement.
How can you save money on insurance costs for your vehicle? Let’s take a look.
Never Auto-Renew
Last year, the FCA ruled that insurance companies cannot charge existing customers more for renewal than they would charge a new customer.
While this should stop you from seeing a big price hike if you do auto-renew, it may mean insurance companies put their prices overall to cover this.
Either way, it’s likely you’ll find a better price by changing to a new company. While this does take some time and effort, if you’ve always renewed before, it could save you several hundred pounds.
Always Compare Prices
Before purchasing insurance, the best thing to do is compare prices via a comparison site. Simply fill in your details and you’ll be given a list of insurers offering the best prices. You can add extras such as legal protection if you so wish.
Most comparison sites will save your details meaning you just have to make minor updates when you return each year.
And it’s not just cars this works for, try here for a list of motorbike insurance quotes at great prices.
Check Direct
While comparison websites are great, there are lots of insurers they don’t cover. If you’re looking for the absolute best price and have a few hours to spare, spend some time getting quotes from well-known insurers that aren’t on comparison sites.
Take Into Account Any Freebies
Some insurers and comparison websites offer freebies when you purchase insurance through them. While this should never be the only reason (the level of cover for your needs should come first) it is still worth considering.
For example, if one comparison site is offering a £20 voucher for shopping with them but they are charging £2 more than shopping direct, you might decide the voucher is worth spending the extra £2.
Shop Via Cashback Websites
Finally, another great way to ‘save’ is by shopping through a cashback website, which pays you a small commission each time you shop with them.
Simply register with the cashback website, find your choice of insurer listed there and click the link. You then shop as normal.
It can take a couple of months for the cashback to become available but it can often be a significant amount, for example, £50.
While typically you should get your cashback, on some occasions it doesn’t track as it should, so I would always consider this an added bonus on an already cheap price, rather than seeing the cashback as a discount.
How To Save Money On Insurance: Final Tips
Looking to save even more money on insurance? Here are some final tips:
- Ensure you’ve got quotes from every insurer possible by using several comparison sites to compare prices as different insurers will be listed on each one.
- Get quotes early – around four weeks before your current policy ends should be the cheapest time.
- Adding an extra driver can sometimes reduce the cost of your insurance.
- Car and motorbike modifications can massively increase your insurance premiums.
- Young drivers may find doing a pass plus course or having a monitoring box fitted to their car will reduce the cost of their insurance.
- Paying in full if you can afford to is usually cheaper than paying in monthly instalments.
When there seems to be price increases on everything, I really hope these tips can help you bring the cost of your insurance down.
