As if the cost of fuel and the price of repairs wasn’t enough to make a driver pull their hair out, the cost of car insurance is set to rise rapidly over the next few months and into next year. Issues with the cost of personal injury claims are one of the big problems while older drivers are seeing increases when normally they are relatively exempt. So, what can you do to keep your insurance down without losing cover or voiding your policy?
With comparison websites and companies such as Hastings being all over the TV and internet, you would think that everyone would automatically shop around for their insurance premiums. But a surprisingly large number of people still just take the price offered by their existing company. After all, they were cheapest last year – weren’t they?
With most policies increasing by at least 10% it is more important than ever to shop around. Just make sure that you have all the same cover as your existing policy to get a like for like a quote.
Telematics or the installation of a box that monitors your driving started out as something for younger drivers to show they were sensible and therefore reduce their insurance. But now, the system is being used by a range of drivers and they can see a substantial decrease in price. One driver had paid £1800 for her renewal and opted to have a box fitted. Come to the next renewal date, her price has decreased to £1000 – a saving of 44%.
Who drives the car?
If you have kids, even ones that don’t live with you, there’s the temptation to add them to policy at renewal, just in case, they need to drive. But unless they are regular users, then it is better to limit your policy. Insured or insured and spouse only policies are cheaper than having named drivers and the more drivers on the policy, the more it costs. You can always add them as temporary drivers if they visit for a week or two assuming your insurer allows this feature.
Another thing to consider is the excess on your policy. While a low excess is a sensible thing, you might be able to increase your voluntary excess by only £50-100 and see a good saving. Always make sure you can afford to pay the excess if you do have a claim so don’t go for a £1000 excess just to save on your premium.
Protected no claims discount
Once you reach four years no claims discount, it is definitely worth paying more to protect it. While this doesn’t protect your price and it can still increase if you have had a claim or not, it does ensure that you won’t lose what can be up to a 90% discount with some insurers. While some companies don’t go above 4-5 years NCD, others will go much higher and give bigger discounts. And the more discount you get, the more it costs you if you lose it.