7 Simple Tips To Reduce Your Car Insurance

Car insurance companies hate risk. They also hate losing money. So one way they try to counter both of those things is by upping the price of their policies, based on particular attributes associated with you, your driving history or your car.

(If it's time to choose a new car, you can simply lease one in a lower insurance group. However, I get that that's usually not an option.)

Luckily, you can fight back though. Read one for some of the various ways that you can get a significant saving on the cost of your car insurance.

Tip #1 — Don’t insure young drivers on your policy

When you put a young driver, fresh out of their L-plates, on your policy, you’re practically inviting the insurance company to charge you like there’s no tomorrow. Insurance companies see young drivers – especially boys – as being a high risk group, more prone to accidents, so they’ll up their prices accordingly. Whilst it might be cheaper for the young driver, it certainly won’t be cheaper for you.

Although it can seem pretty unfair, keeping young, inexperienced drivers off of your policy is one way to reduce the cost of it.

Tip #2 — Protect your no claims bonus with your life

Despite seeming slightly counterintuitive, not claiming on any accidents that you have can actually help reduce the cost of your insurance in future years – a no claims bonus can make your insurance significantly cheaper. Although you’ll have to cover the cost of any repairs to the other person’s car yourself, you can often end up spending less than you would have to pay in insurance if you didn’t have a no claims bonus. So, by paying for the repairs yourself and not claiming, you can still end up saving you money in the long term in some circumstances.

Tip #3 — Don’t add optional extras to your policy

Unless you really can’t live without that personal injury cover or guaranteed hire car, a lot of the time, there’s little need to add all those optional extras to your policy. They’re kind of like sweets at a checkout in a shop – just an extra way to get more money out of you when you’re in a spending mood. Those extras usually don’t come cheap, and you might be better off just paying for them independently if an accident happens, rather than through the insurance company.

Tip #4 — Pay all in one go

When you take out an insurance policy, you’ll be given two options for paying: you can pay for it up front or you can pay for it in monthly installments. It normally works out cheaper if you pay for everything upfront rather than over the course of the year.

Tip #5 — Choose a car in a lower insurance group

Choosing a car that’s in a lower insurance group is one really obvious way to save money.

All cars are categorised into 50, numbered groups and the lower the number, the cheaper the insurance is likely to be. Cars like the Nissan Micra, Volkswagen Polo and Vauxhall Corsa are all in lower insurance groups so you can expect their insurance costs to be relatively low. On the other hand,  vehicles in higher groups, like the BMW 7-Series, Mercedes AMG GT Roadster and Audi RS7 Sportback are likely to be much more expensive to insure.

Tip #6 — Offering more voluntary excess

Offering to pay a larger voluntary excess figure can help to lower your insurance too. You’ll need to pay this in the event of having an accident but that’s usually well worth the discount you’ll get in your insurance policy. As the saying goes, you’ve got to spend to save.

Tip #7 — Improve the security of your car

Investing in a decent security system should reduce the risk of your car getting stolen quite a lot. As a result, your insurance company is likely to offer you a cheaper policy. You’ll usually get a fairly tasty saving of 5% on the cost of your policy.