As fuel prices, energy bills and general cost of living set to soar and news of a National Insurance tax hike coming into force, many are rightly worried about the cost of their monthly bills.
To help reduce monthly outgoings, CarMats.co.uk has revealed their six top tips that will cut the cost of your car insurance bill – giving us all one less thing to worry about.
No one should be overpaying for a service they are legally required to purchase, claims the insurance experts.
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And just like you can find bargains and cut costs in the supermarket, you can also reduce your car insurance costs by doing these seven things:
This year, a new law has come in banning insurance companies from charging existing customers more than new ones for policies. This is set to stop the practice of ‘price walking’, in which insurers increase premiums each year for existing customers. Although this means the end of discounts for new customers, it could still be worth switching insurers.
The new law doesn’t mean your insurance bill will remain fixed and insurers could still increase your premium based on your potential risks. This includes your neighbourhood and your annual driving record, among other factors.
Not all insurers factor in risks the same, so, if you are getting your first-ever insurance, renewing coverage or switching to a different insurer, you can still save money by comparing rates from different companies. We’d recommend obtaining a few quotes from insurance providers to find the best deal suited to you and your car.
Lower your mileage
Started working from home since the pandemic but not changed your annual mileage? You could save yourself a hefty chunk by calculating and updating your premium with your new mileage.
If your mileage hasn’t been affected by the pandemic, you could look to reduce your driving time in other ways. We’re all guilty of hopping in the car for even the shortest of journeys, but it may be time to get your walking shoes for shorter trips, as it could cut the cost of your car insurance bill.
Many companies offer discounts if you have a lower mileage count because it reduces your time on the road – meaning you’re less likely to make a claim.
If you’re looking to cut down on your car usage, you could:
Purchase a cheaper/insurance-friendly car
If you’re on the hunt for a new car, it’s worth considering which vehicle will fare best with your insurance company.
Insurance quotes assess a number of factors, including the vehicle, its model, engine size, purchase price, repair costs and safety history.
Generally, more expensive cars will cost more to repair and replace if they are damaged in an accident, therefore it may be worth looking at better-valued vehicles.
The UK is in an energy crisis following the price of gas which has rocketed in recent weeks.
Many energy suppliers are out of business which has prompted warnings of food shortages in UK supermarkets.
Householders are being warned that anyone coming off cheap, fixed energy deals could be in for a huge price hike, even on the cheapest tariffs. To avoid a potential price hike in energy bills customers can:
- Stick with the price cap for six months as prices could potentially fall if the energy market stabilises.
- Switch to the cheapest one or two-year fixed deal but you’ll need to act fast – see here for switching.
Here are some of Ofgem’s suggested comparison sites:
Buy multi-car insurance
A family of motorists could also cut the cost of their bill by purchasing multi-car insurance if there are two or more vehicles residing at the same address.
Not only is a joint-car policy more convenient to subscribe to, saving you time to acquire, but it often works out cheaper by combining the cover of all vehicles.
However, in some rare circumstances, separate policies will be cheaper – so, it’s worth doing thorough research first!
Get a black box
Some insurance companies offer ‘Black Box Insurance’, which records and transmits data about how you drive to your insurer.
If you’re a high-risk driver and have had previous accidents, driving offences or points on your licence, this type of insurance might be more suited to you as it could help you become a safer driver, and ultimately, lower your premium.
If, as listed in point 2, you want to lower your mileage to reduce costs, many companies also offer a mileage tracker with a black box transmitter. You can agree to limit yourself to a set amount of annual miles and this will affect your car insurance costs.
Although it may seem costly upfront, paying your car insurance bill in one purchase is a great way to reduce your bill overall.
Most major insurers will offer a discounted price for a one-off payment as it guarantees their payment for the 12 month period. It also means you will avoid entering into a credit agreement that involves paying interest on the sum calculated by your insurance company.