Looking to lower your car insurance premium? Car insurance is a major cost each month, especially for young/new drivers, but it is also one that is essential. Fortunately, there are a few ways that you can lower your car insurance costs while maintaining adequate coverage.
Shop Around & Compare Quotes
One of the easiest ways to save money is to shop around and compare quotes when renewing. There are online comparison tools you can use to simplify and speed up this process, helping you find the most affordable insurance while still getting the level of coverage you desire.
Increase Your Voluntary Excess
Another way to bring down your costs is to increase your voluntary excess. This is the amount you agree to pay towards a claim you make if you have an accident. While increasing your voluntary excess can reduce your premiums, you must be comfortable with the amount you choose, as this will affect your out-of-pocket costs in the event of a claim. Ensuring you’re covered by having the right car insurance policy is crucial for balancing both affordability and protection.
Take Advantage of No Claims Discounts
A no-claims discount can be a highly effective way to lower your car insurance premium. This is a reduction you get for not making any claims, which can be applied after just one year and builds up over time. A no-claims discount is valuable, so you want to protect it. In addition to driving safely, you can protect your no-claims discount with a no-claims discount protection policy, which allows you to maintain your discount even if you have to make a claim. You can take your no-claims discount with you if you change insurance company, so do not feel you have to stick with your current provider.
Consider Telematics or Black Box Insurance
Telematics—also known as black box insurance—uses technology to monitor driver behavior and reward driver safety. This is ideal for young/new drivers, as you can prove that you are a safe and competent driver to bring your costs down. Telematics is a great option for competent drivers, but privacy concerns will put some off, as your driving routine will be monitored.
These are all effective ways to bring your car insurance premium down while still getting your desired level of coverage. Car insurance can be a major cost to manage each month, especially for new/young drivers who are deemed a higher risk. Fortunately, there are always things that you can do to bring these costs down and save money each month.