Tips For Saving Money on Car Insurance

Once you have purchased your first car you are going to need to get tax and car insurance before you can legally operate the vehicle on British roads. Many young drivers find that the premiums they are asked to pay are quite high at first, which can often be a barrier to them getting out on the road.

With that in mind, we have collected a few tips that may help younger drivers find more affordable car insurance, or aid older drivers in getting a better deal.

Always Shop Around

You should never assume that the first quote you receive is going to be indicative of every other quote you get. Insurance companies will base their quotes on a number of factors, many of which are given different weight depending on the company you are talking to. As such, you should take the time to run online price comparisons to see if you can get a cheaper price elsewhere. This is important for experienced drivers too, as you can’t guarantee that the company you currently have your insurance with will offer you a better deal than all others each time you have to renew.

Be Wary of Add-Ons

A lot of insurance companies are quick to point to the potential added value of additional cover, such as insurance to protect against windscreen damage, but this may be an unnecessary add-on for you. Carefully consider the type of terrain that you will expect to be driving on and whether or not you are willing to take a little bit of risk to save some money. Remember that too many add-ons can lead to a significant increase in the amount that you pay for insurance and will often never be used during the course of your policy.

How Far Do You Drive?

Many insurance companies use the amount that you drive as a deciding factor when it comes to how much they will charge for insurance. As such, if you don’t drive very far in your car you may consider discussing the mileage cap that is placed on the insurance policy. You may find that you are able to save money by agreeing to a lower mileage cap. It will place limitations on how far you can drive in a year, but if you only use the car for short commutes or other short journeys it may be a good option.

Avoid Monthly Payments

Where possible you should try to pay for your insurance in one go, rather than spreading the cost out of the course of twelve months. This is because most insurance companies will charge interest if you make monthly payments that you wouldn’t be subjected to with a one-off payment. If you are unsure, ask the company directly how much interest you will be expected to pay if you choose to pay monthly. Their answer should help you to make a decision that suits your financial situation, though the general trend is that monthly payments incur more interest and this cost more money in the long run.