How to keep car insurance low
The Pass Plus Scheme
Designed by the Driving Standards Agency (DSA), Pass Plus is the ideal course to enhance driving skills and road awareness. Young and newly qualified drivers can boost their no-claims bonus by taking an additional test called Pass Plus. Some companies will credit people who have passed Pass Plus with an extra year's no claims bonus. Young drivers could be looking to save in the region of 30% on their first policy just by completing this course. There are a range on insurance companies who provide discounts for drivers who have passed Pass Plus.
See our advice section on insurance companies that support the Pass Plus scheme.
Apply for as many insurance quotes as your time will allow. By doing this, you will be amazed at how much money you can save. Remember to compare all insurance quotes on a like-for-like basis as even the most expensive one might appear considerably cheaper if all the extras are taken into account. You might find one insurance policy comes with breakdown cover as standard, while another it may have to be bought separately, and by paying extra it could make the cheaper insurance roughly the same as the more expensive one.
Buy a smaller engine car
Buying a car with a small engine will make a significant difference on your insurance premium as well as your car tax premium. Remember that buying a cheaper car will not make a huge difference to your premiums although buying an old car that may produce higher C02 emissions may incur a higher road tax charge.
Consider the car's insurance group rating as well. All vehicles in the UK are assigned a group rating number between 1 and 20, and by choosing a car with a lower number will significantly reduce the overall cost of your car insurance.
Before buying your car, compare prices
Once you have in mind the type of car you want to buy, write down all similar cars, makes and models that you will be willing to purchase. Get an insurance quote on all the models.
The cost to insure these vehicles is not only based on the size of the engine but the overall cost of the car and how much it would cost the insurance company to replace or repair it, the likely hood of theft and also its safety record. So, a similar car with a similar sized engine can vary by a significant amount.
Higher voluntary excess
Taking a higher Voluntary excess ( The amount of money you have to pay the insurance company if you have to make a claim) than the standard £100 could give you a substantial discount on their premium. This will leave you with less money in the event of a claim, but providing you don't have an accident, it could save you a significant amount.
Be aware of the different type of car insurance coverage
The type of insurance you take can save a significant amount off your premium.
If the car that you have purchased is worth from around £1000 - £2000, consider taking Third Party insurance. If you intend on using your car very little and will only be covering a small amount of milage, then a Pay As You Drive coverage may work out cheaper. Knowing the different types of car insurance available can save you a fortune.
Take out your home and car insurance from the same provider
This will not save you a fortune for sure, but worth looking into. If you take out 2 or more insurance premiums from the same provider, they are likely to cut you some kind of deal.
Maintain a good credit score
If you intend to pay for your insurance premium in one lump sum, then this will be of little benefit. Paying for your insurance on a monthly basis can be thought of as a loan in some ways. If you have a bad credit rating, an insurance company you have chosen may reject you or charge you an excessive amount.
To reduce the risk of theft, you should park you car in a garage or a driveway. This is a big deterrent to thieves, so if you are able to park your car safely in either of these then it's always advisable to do so. This alone can save you 5% on your car insurance.
Car security devices
Vehicles fitted with an engine immobiliser or alarm may qualify for a discount. Devices which qualify for a discount vary from insurer to insurer.
Declare your mileage
Telling your insurer how many miles you do, especially if it is below average. Each company might have their own rules on mileage and at what level it will affect the insurance premium, but on the whole the industry usually work with the concept that annual mileage falls into one of the following categories: 3k, 5k, 8k, 10k, 12k, 15k and 20k. If you can limit your annual mileage to less than the average 12/15k then you could start to see it reflected in the cost of your car insurance.
All Drivers on Insurance Policy
Car insurance that covers any driver to use the vehicle can add a significant amount to the insurance premium. The only time when this can work out cheaper is when a named driver policy is required for a younger driver, then having an all driver policy could well work out the better option.
Try and keep car modifications to an absolute minimum.. The only modifications that will normally reduce insurance premiums are extra security devices, this basically means alarms and immobilisers.
Build No Claims Discount
In most cases having a no claims bonus is probably the most reliable way of reducing the cost of car insurance. Try and build your no claims discount as soon as possible. This means you will have to have your own car insurance policy before you can build your discount, and for most young drivers this will seem very expensive.