Tips and tricks to get cheaper car insurance

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Caroline Stronkhorst in Vehicles & Motor

Last updated: 13 February 2020, 10:06 GMT


It’s no secret that car insurance can be expensive. Having the right insurance policy for you is very important if you don’t want to get stung. There are a variety of factors that play in to the price of your car insurance policy and, if left to the big insurance companies algorithms alone, you are probably paying too much.

 Now it’s time to fight back and save money on your car insurance with these money saving tips!

What are car insurance companies looking at?

As a starting point, it’s a good idea to know exactly what car insurance companies are analysing when coming up with a price for your policy. The car that you own is normally the starting point for any quote; cars are worth different amounts and carry different risks e.g. high powered cars are more likely to be in an accident than inner city runarounds. 

Another key factor is whether the car is imported from another country. The reason this impacts the price is because if you need spare parts or expert maintenance then the cost of sourcing and fitting those parts is more expensive. This is something that is taken into account for obvious reasons!

If you want cheap insurance, don’t get an imported racing car to do the school run in! 

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Another decider on policy pricing is the location that the car is in. Unfortunately, if your postcode is earmarked as a higher risk area, there isn’t much you can do about it other than pay extra. This postcode lottery is a way of insurance companies covering their backs based on crime and risk data they have collected or bought.

Being aware of this will help you to better understand the quote in front of you!

Being clear with your insurance company about who is going to be driving the car is not only a legal requirement but a pricing factor too. To get the cheapest car insurance quotes, the ideal scenario is that the registered vehicle owner is the same person as the driver. 

People use cars for a whole host of reasons: commuting, for work, social/leisure and many more. If you are a light user of the vehicle then the risk is minimised and that should be reflected in your next car insurance quote. On the flip side, if you use the work as a key part of your job then the opposite is true. However tempting it may be, don’t hide the exact use of the car from your insurance company because, should you ever need to claim, it may be invalid if you didn’t declare it. You may have saved some pennies in the short-term but it will cost you dearly in the long-term! This is a money saving tip for future you. 

A common way to drive down the price of insurance is to install a “black box” or other tracking device. These devices are typically provided by insurers and are to be installed into your car. The black box monitors when and how you are driving to assess the risk and price your insurance accordingly. Careful, daytime drivers will get a much better price than those who are speeding and driving erratically overnight.

If you’re a good driver then you could and should get rewarded for that in the form of a discounted insurance policy!