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How to Save Money on Your Car Insurance

How to Save Money on Your Car Insurance

8 Ways to Save Money on Your Car Insurance

Car insurance is, by law, something you are always going to need to have if you’re going to drive on British roads. It’s there for a reason! Not just to protect you, your family, and your car, but other road users, cars, and pedestrians alike. However, many motorists find that they get pretty frustrated at the premiums expected of them when looking for car insurance for the first time. 

However, there are no real reasons why you should ever have to pay over the odds for car insurance coverage. After all – providing you cover yourself for what you need, you shouldn’t expect to break the bank in the long run. But why is it that certain car insurance premiums vary so much?  

There are a fair few ways for you to save some of that hard earned cash on car insurance. In this guide, we’re going to look at a few tips that might not be too obvious. There’s no excuse to drive without insurance for your car – but at the same time, there’s no excuse to pay over the top for the privilege. 

loanbird listing 8 Ways to Save Money on Car Insurance

1. For some, It can always be tempting to go all-out when it comes to choosing any kind of insurance cover. After all, you are going to need to make sure you get everything you need from your premiums. However, try to go as bare bones as you can. Focus on your necessities. Are you really going to need that courtesy car? What about fancy add-ons such as hubcap cover? Ok – this might not exist, but you get the point – the more straightforward your premium is, the less you’re going to pay, generally. 

2. Go for annual payments wherever possible. You may find that some insurance companies really bump up their rates if you choose to pay by direct debit per month. That’s because the interest they apply is likely to differ. After all, you’re entering into a formal credit agreement! If you can afford to pay your premium in one go for the year, you’ll save money and it’ll take hassle payments off your plate. 

3. Try to drive less – yes, really. If you’re already on the road and need to renew or want to swap to a different insurance provider, consider your mileage use. Yes – plenty of us love driving for the sake of it, but there are more than a few insurance carriers out there who are willing to charge more if you have higher mileage than most. Is it really worth paying that extra costs? It might not be. Try and be frugal with your journeys. 

4. Think carefully about the cars you actually buy. Insurance is much likely to be higher for vehicles with bigger engines and more power – and, of course, those with poorer fuel economy. Therefore, try and look for vehicles which aren’t likely to beef up your premiums. If this means shying away from muscle cars and gas-guzzlers, then it might make all the difference to your bank balance. 

5. With all forms of car insurance, there will be an excess that you need to pay should you ever make a claim. This is an amount of money that effectively ensures a provider will cover you for the full cost of a repair. While some excesses are fairly low with car insurance packages, you might actually make the regular cost of your premiums cheaper if you volunteer to pay a higher excess. By doing this, you agree to pay more if you need to make a claim and are therefore cutting down the costs of your regular payments. 

6. Of course, you should think carefully about whom you actually want to take insurance out with and assess the terms accordingly! You can do this pretty easily by comparing all the car insurance providers and packages available. You’ll likely have seen a million and one comparison engines advertised on TV already. However, they are well worth looking into, as you can fine-tune what you are looking for in the best insurance providers down to the last digit. 

7. You should also think about tuning up the overall security and performance of your car. Insurers are more likely to give you preferable deals if you can demonstrate that you are looking after your vehicle. For example, does your car have a good locking framework? What about your alarm system? An insurance carrier may even ask you where you leave your car – these are all areas where you can save money providing you are safe enough! 

8. Be sure to add someone experienced as a named driver. Providing that you add someone as a secondary driver – and not as the main operator of your vehicle – you might find that your insurance premiums actually start to go down. That’s because carriers will likely prefer to cover you if there’s less risk of a younger, less experienced driver taking the wheel at all times. Be careful, though, as if you falsely claim that an older driver to be the main motorist when they aren’t, you are going to risk breaking the terms of your policy. 

an uninsured car left on a scruffy road

And Finally – A Heads up From LoanBird

Of course, while the above tips are all great for helping you to find low-cost deals on car insurance, you must ensure that you are trading with regulated professionals and experienced insurance providers. Otherwise, you may end up paying rates for a less than scrupulous service. 

Make sure to check customer reviews, regulatory bodies, and to ensure that you are aware of what you’re getting into. If anything seems suspect or untoward, save your money – or look elsewhere. While there are some real bargains out there when it comes to saving cash on car insurance, some deals really are too good to be true. 

Take a look around the markets and see if you can find a carrier or two who can support you within the budget you demand. There’s never a good reason to be out of pocket when you don’t have to be! Take care of your finances – shop around. 

As we explained above, it pays to calculate the interest on what you could be charged by the insurer per month, against paying a one-off annual fee. With loan options starting from 4.9% APR, it could work out cheaper for you to take out an unsecured loan through us to cover the full years cost of your insurance. Obviously, work out the figures on this before making a definitive decision. If you do apply with LoanBird, to note, you don’t have to commit to any of the loans displayed to you… you can essentially window shop with us before choosing a lender.