Top Tips To Reduce Your Car Insurance Premium


The trickiest thing about buying a new car is finding the best insurance deal because there are so many variables. If this is something which has left you scratching your head wondering whether you actually got the best deal then fear not, because when it comes around to renewal next year this helpful list will point you in the right direction of a cheaper deal.


Shop around

This is probably the most obvious tip in the list but it is surprising how many people each year stick with the same insurer, simply because of the relative ease of signing on for another year. Yes scouring the comparison sites and ringing around the sea of insurance companies isn’t exactly fun, it could well save you a huge chunk of cash.


Securing your vehicle

Depending on age and size of your car this might not be an issue, but for those of you with a slightly older car, or one not fitted with any security technology, this could really help you. Fitting your car with an immobiliser or tracking device can bring a discount of up to 5%.


Reducing milage

Obviously this is very dependent on what you do occupationally, so can be difficult to cut down if you drive along way for work. If you can cut down on miles however, you can save yourself a good bit of cash. Cutting anywhere between 5,000-10,000 miles of your annual mileage can save you between £50 and £100 according to This is Money.


Use your garage for its actual purpose

Many of us end up using our garages as extra storage for the house, leaving the car to sit on the driveway or on the street. Well if you want to trim some cash off your deal next year, its best you find somewhere else for all of that clutter. Keeping your car in a safer place like a garage is something insurers are keen to hear about, and in turn could end up saving you a decent amount off your premium.


Be specific about your job

Insurance companies keep detailed records of different occupations and their accident likelihood, meaning being specific about what you do everyday could really help your bank balance. An example by Money Wise suggests that telling an insurer you are a restaurant owner when in fact you are a cafe owner, you could end up paying £800 instead of £707, so being specific can make a big difference.


Pay upfront

Whilst this isn’t possible for all of us, if you’re able to pay upfront, you could end up saving. The average monthly instalments deal has interest and by paying monthly, you can end up costing yourself substantially more than you were first quoted.


Add a named driver to your policy

Another way to save on your car insurance is to add another named driver to your deal. This is particularly helpful if you add an older, more experienced driver than yourself. Gender doesn’t really make any difference, though it is probably best to avoid those with any points on their license.


It is important however not to get the policy in the experienced drivers name and the younger driver as the named driver when they are actually the named driver because this is seen as “fronting’ and is illegal.


All the above tips could well get you a better deal next time around, and whilst not all apply to us all, there should be a couple for everybody.