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Car insurance – Five ways you can slash hundreds off the cost of your policy 


Car insurance can be incredibly expensive and prices have risen over the past year due to changes to Insurance Premium Tax and claim payouts.

It can be one of the most expensive expenditures for a motorist and can run up into the thousands for younger drivers.

Picking the correct premium can also be a daunting prospect for many drivers with there being so many options to increase and decrease costs.

Options include things such as options for thrift party or comprehensive, protecting no claims bonuses to excess fees.

On average a motorist pays £752 for an annual insurance policy in the UK but there is a dramatic difference between the least and most expensive premium.

Here is a list of five ways you choose the correct insurance cover that suit you, and could save you money, with help from Moneybarn:

Shop around

Shopping around is the easiest and perhaps one of the most obvious tips drivers can follow to slash insurance costs.

Auto-renewing your premium may be the quickest and easiest method of getting cover for a year but it could be costing you hundreds.

The time you choose to switch could also save you money because if you wait three before your renewal to apply for a new premium then you could save £365.

Car insurance

Car insurance tips to help you save money (Image: GETTY)

Lower your risk

Being accurate with the amount of mileage you stand to cover in a year could also see you land a cheaper premium.

In fact, if you skew your mileage information it could invalidate your policy.

Typically, if you claim you will be a low mileage driver then your premium should be cheaper as the amount of time you’ll be spent on the road decreases.

Adding an older and more experienced driver to your premium could also see you save you up to £800 a year. 

Prices can increase or decrease depending on what driver has been added to the premium and motorists should also be wary of offences such as fronting, which could actually see them pay more.

Car insurance

Driving safely and shopping around can save you money (Image: GETTY )

Decrease the price

Paying annually could see you save 20 per cent off the overall cost of your insurance than if you opt for instalments.

Drivers are also being urged to only pay for services they actually need.

For example, many motorists covered for aspects like breakdown cover. Some banks include this in their services so, check what you’re already covered for, or if you can get it cheaper elsewhere.

Premiums also come with compulsory excess fees, however, taking out a higher voluntary excess could keep premiums down with most providers.

Careful drivers benefit most, agreeing to pay more if you make a claim but reducing their yearly premium. Voluntary excess charges can also usually be adjusted to what you can afford.

Protecting your No Claims Bonus

The safer you drive, the more you will be rewarded fir it by your insurer in the form of a no-claims bonus (NCB).

Drivers that don’t make a claim over the course of a year will be rewarded with one year no-claims bonus, which can see your premium be heavily discounted.

In fact some providers offer discounts of up to 65 per cent for drivers with over 5 years’ no claims.

You can usually protect your bonus at an additional charge to your premium and for many drivers it’s worth it to keep their NCB intact.

However, if you have an accident, though your NCB stays protected, it won’t necessarily keep your premium down when you come to renew.

You can also carry your NCB with you to a new provider, so remember to get proof before switching.

Drive safely

Cars are split into insurance groups, based on things like repair costs and performance with group 1 the cheapest to insure and group 50 the most expensive.

Though it may not be possible to trade in your motor for a cheaper option, there are ways you can keep the costs down.

One way young drivers can lower premiums is to consider ‘black box’ insurance.

Black boxes are used to track speed, braking, and handling, so look for insurers who offer this service, as the safer you drive, the greater the chance of premium reduction.

Many providers offer discounts of up to 20 per cent for drivers who install a dashcam.

An RAC study found 25 per cent of drivers believe they would drive more carefully with one installed, and this is reflected in kinder policies.



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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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