10 Ways to Reduce Your Car Insurance

One of the easiest ways to reduce your car insurance policy is to add another person such as a family member or friend onto it. It doesn’t tend to matter what age the person is or how much experience the person has and you’ve really got nothing to lose.

You should however, avoid adding people to your policy if they have had a history of accidents or have points on their licence.

Where young drivers are concerned, adding an experienced driver to a car insurance policy can result in much cheaper quotes. Be warned, putting the policy in the parent’s name, with the young driver as a named driver when they’re actually the main driver, also known as ‘fronting’ – is illegal and can result in the rejection of insurance claims if you have an accident.

Modifications such as alloy wheels or body kits may look appealing to younger drivers or enthusiasts wanting to add a personal touch to their car. However, they are best avoided when looking to reduce car insurance as they can bump up premiums by hundreds of pounds.

If you are determined to add modifications to your vehicle, choose cheaper options and make sure you tell your insurer as non-disclosure can result in claims being refused after an accident.

Insurers offer an alternative to paying the full premium in one go and that’s pay per month. Whilst it may seem appealing to those with high premiums like those that have had an accident or young drivers but it’s usually much cheaper to pay it all in one go, if you can afford to. You’ll avoid the monthly interest charges and could save a substantial amount.

Setting a higher voluntary excess - the amount you’d have to pay up front if you make a claim - can significantly reduce car insurance premiums and is an ideal way for those that have had an accident or young drivers to pay less. However, beware of increasing your excess to high, especially if you drive a lower value car.

If you’re willing to prove you’re a safer driver after an accident you could pay less for your cover with a black box insurance policy. The box records behaviour and monitors driving style and can also be a great way for young drivers to reduce their premium.

It involves a black box being fitted into your car which uses technology to assess braking, speed, cornering, acceleration and the time of day journeys are made. Some black box policies do include a night-time curfew to reduce driving at what are considered dangerous hours.

Those that insure their vehicle using a black box policy are charged on a monthly basis, which means the insurer can quickly adjust the premium to reward better driving and punish poor driving.

The less miles you do, the lower your insurance premium. Simple. Insurance companies know that the more miles you do, the more likely you are to have an accident. If you limit your annual mileage you should see a reduced premium. It is important that you tell your insurer exactly how many miles you do per year as innacury may jeopardize a claim.

Online comparison services have made it much easier to find the cheapest car insurance for your needs. Simply enter your details and let it do the hard work for. Check carefully when shopping around, it's important to make sure that you are comparing like-for-like cover. Some policies may look cheaper than your current one, but when you make a claim, you may find the level of cover differs.

Whilst you may be happy with your current insurer, the chances are, another provider may beat their renewal quote. When they do, call your current insurer and tell them, they may match the quote.

If you have a minor bump it’s often cheaper to get the work done yourself rather than claim on your insurance. By claiming you will have to pay the voluntary and compulsory excess as well as an increased premium when your renewal is due. You also risk losing one of the biggest factors attributed to low insurance; no claims bonus.

We must stress that if you decide not to claim, you should still tell your insurer, as a requirement in the policy terms and conditions. Failure to do so could result in insurance being denied in the future.

The pass plus scheme is a great way for first-time drivers and those that have recently had an accident to reduce car insurance. The majority of insurers recognise the scheme which teaches safe driving on motorways and at night. Once you complete the scheme tell your insurer and it should reduce your premium. 

Many people don’t realise how much their job title can affect their insurance premium. It’s easy to say something generic like Marketing or Nursing, but if your precise about it, such as Marketing Director or Medical Officer you could see a reduction in your premium.

Insurance companies keep a detailed list of claims by profession, if your quote is high it may be down to the carelessness of others in your profession. Always be truthful when telling your insurer your profession or risk an invalidated claim.