Avoid these mistakes and save money on your car insurance

All opinions are mine and mine alone.

Avoid These Mistakes and Save Money on Your Car Insurance 

 In the last few years, car insurance prices have been going up at an ever increasing rate. However, there are a few things you can do to save money on your policy. By avoiding these common mistakes you can ensure that you’re getting the best car insurance deal possible. 

 

Don’t drive recklessly 

This may seem obvious, but the best way to reduce your premium costs in the long run is to not have any accidents. If you can prove to your insurer that you’re a safe and low risk driver, you will be rewarded with discounts on your premium. For every year you drive without making a claim on your insurance, you will receive a no-claims bonus. 

A quicker way to show your insurer that you’re a careful driver is by using a black box policy. This involves fitting your car with a small device that monitors your driving habits such as speed and distance covered. The data is sent to your insurer, who will either increase or decrease your premium monthly based on your driving performance.   

Don’t make small claims  

If you’re involved in a minor accident and have a small bump or scratch on your car, you may be tempted to claim the money for your repairs through your insurance company. However, if it will only cost a small amount to repair it’s probably not worth getting your insurers to cover it. It will only affect your no-claims bonus and ensure higher premiums in the future, so you will be losing money in the long run. Only make a claim if you really have to.  

Don’t stick with the compulsory excess  

When getting a quote for your car insurance, you will be presented with the compulsory excess prices. This is the amount you will need to pay up front when making a claim. However, you can choose to increase this with a voluntary excess. Although it is tempting to stick to the lowest excess in order to pay less, you can actually save money on your premium by opting for a voluntary excess. As you will be paying more when making a claim, your insurer will see this as lowering your risk.  

 However, you should be careful as to how high you set your excess. Try to keep it affordable, as you will need to pay this when making a claim after an accident. 

 Don’t pay monthly  

When buying your car insurance, you will usually have the option of paying either annually or in monthly instalments. It may seem daunting to pay such a large amount for the year in one go, and therefore more affordable to pay monthly. But by paying monthly you will end up paying more over the course of the year through interest. Insurance companies typically charge between 10% and 30% APR. 

 Don’t lie to your insurer  

It may be tempting to tweak some facts about yourself to your insurer, such as saying you’ll drive less miles than you intend to, or failing to declare previous driving convictions. If your insurers find out that you have lied to them about anything, including your postcode or job title, any claims you make will be rejected and your policy could be cancelled altogether.  

As a young driver you can save money on your car insurance by adding an older, more experienced driver such as a parent to your policy. However, you should never claim that they’re the main driver if they’re not. This is known as ‘fronting’ and is considered fraud. If caught, you could have your policy cancelled, face a driving ban and even a criminal conviction and imprisonment.  

Don’t be content with your policy  

After hours of searching you may think you have found the best car insurance deal going. However, the market is constantly changing and when it comes to renewing your policy it is worth shopping around and comparing the market again to find the cheapest deal.