Obviously one of the best ways to save money is to shop around to make sure you’re getting the best deal. But the factors below can make a big difference in the premium you pay:
Mileage
Yearly mileage is usually a key factor in deciding the cost of your motor insurance premium. If you travel a lot then you will pay more. Keep your insurer up to date on your annual mileage.
Learner Drivers
Pass Plus is a great way to lower your insurance premiums. Insurers want to see you are a competent driver so passing your test can be added to by taking extra advances lessons. Your premium can be cut by up to 35% if you have an advanced driving certificate.
Alarms and Immobilisers
If you have alarm systems and / or an immobilizer fitted then you are less likely to have your car stolen which reduces your premium. There are some alarms and immobilisers which cut your premium more than others so check with your insurer before you have one installed.
Car Modifications
Modifying your car can add costs to your premiums.
Paying Monthly
If you pay monthly, you will be paying more because you will be using a credit service to pay for your insurance. Some companies charge fees of up to 29% APR for this service so consider paying your premium annually.
Main Drivers
Who you have as the main driver will affect your policy. If you share a car with someone and they have a cleaner driving license then put them as the main driver to save yourself money.
With insurance you get what you pay for, so make sure you’re not paying for ‘benefits’ that you don’t really need:
Courtesy Cars
You will be paying for this privilege (via your premium) so consider whether or not you really need it.
Legal Protection
It is a good idea to be covered in the event that you have an accident which wasn’t your fault and want the chance to claim back any uninsured losses. However, remember legal support is only granted if you have a good enough case.
Roadside assistance and breakdown cover
Do you need this? You may find that you can get cheaper breakdown cover from elsewhere.
Policy Excess
If you are willing to pay a larger excess then your insurance premium will be lower. Voluntary excess is different to compulsory excess to make sure you read the fine print.
Personal Injury / Belongings
Does your cover include personal injury claims and claims on personal belongings? If so, you may need to consider the costs.
Legal Advice
Does your insurance offer legal advice and medical counselling telephone lines? This may also cost a little more.
No Claims Bonuses
You will need to find out if your no claims bonus will be affected if the accident wasn’t your fault. You can also look into whether you can transfer a no claims bonus which was built up while driving on somebody else’s insurance.
You may also want to look into the no claims bonus scheme and how many claims you are allowed before your no claims bonus is affected.
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