How can I make my car insurance cheaper? | MyWalletHero – Motley Idiot Germany

Image source: Getty Images

According to the Association of British Insurers (ABI), the average fully comprehensive car insurance in the UK costs £ 468 per year. Cheaper car insurance is available, but it will depend on many factors including your age, driving history, and the type of vehicle you drive.

If you are buying a new car or your insurance needs to be renewed soon, you can get your auto insurance cheaper.

Find out before your current insurance is automatically renewed

Perhaps the best way to find cheaper auto insurance is always to get a new quote. The search for the best deal must be done about a month before your current insurance policy expires. If you wait too long, you will get higher prices and possibly fewer options. Then spend some time comparing insurance quotes before deciding on the best option.

Pay the annual premium in advance

Monthly premiums can hurt less, but for cheaper auto insurance, pay the entire annual premium at once. If you split your annual premium over several months, the costs of your policy can increase by up to 30%, taking into account the interest costs.

Register for driving lessons

Being a new driver will cost you as the insurance companies consider you a higher risk and charge you appropriate fees. However, some companies offer a discount if you provide evidence of the Government's Pass Plus driving course within one year of receiving your driver's license.

Ask your insurance company about increased security

Some insurers will offer you cheaper car insurance if they think your car is hard to steal. Adding things like an immobilizer, an alarm system, or a tracker will make your car safer. Newer cars likely already have these features, but it's something to check if you have an older car.

Think twice before buying your next car

There's not much you can do about it right now, but when the time comes to buy another car, consider downsizing. It is cheaper to insure a car with a smaller engine or a compact city car than an SUV.

Keep a clean driving log

Insurance companies don't like risk. The longer you stay accident-free and damage-free, the better you look for an insurer and the higher your chances of getting cheaper car insurance.

Add a driver to your insurance

Drivers over 25 get cheaper car insurance, as do drivers who have had a driver's license for more than a year. If you are a young or new driver you should consider adding a "named" driver to your policy. Choose someone older and more experienced than you with a clean record. This could lower your premium.

Drive more when you are a new driver

Insurance companies don't like people who drive long distances all the time. The more you are on the road, the more likely you are to have an accident. But if you are a new driver and your mileage is very low, you are taking a different risk. Your insurance company may be concerned that you are not getting enough driving experience.

While there aren't any fixed numbers for this, if you only drive 3,000 to 4,000 miles or less per year, you may need to get out on the road a little more.

4 iron rules to save money on everything

Our editor Sam Robson has been on a personal cost-cutting mission for years – and it is time to share his wisdom.

Check out his best tips and tricks for saving in this free report. "Sam's 4 iron rules to save money on everything".

Simply enter your email address below for instant access to your free copy.

Was this article helpful?

Yesno

Avatar for Diana Bocco

Diana is a writer who specializes in debt settlement, savings, and personal investments. Her work is also featured in MSN Money, Inc. Magazine and Yahoo! Finances.

Some offers on MyWalletHero come from our partners – this is how we make money and keep this site running. But does that affect our ratings? Lower Austria. Our commitment is to you. If a product is not good it will be reflected in our rating or we will not list it at all. While we strive to offer the best products available, we don't review every product on the market. Find out more here. The statements above are owned by The Motley Fools only and are not provided or endorsed by any bank advertiser. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.

Comments are closed.