We all know that sinking feeling when the car insurance renewal pops through the post. Of course insurance premiums have come down this year, thanks to the recent government initiative to combat false whiplash claims, but the annual renewal fee can still sting.
You can always turn to an instalment loan to cover the cost of the premium, but you should do everything you can to reduce the cost first.
A few simple steps could mean you save serious money on your car insurance. Here are our top tips:
1. Shop around
It might seem easier to just renew with your current insurer, but it will almost certainly cost you money. Check the likes of Confused.com and make sure you have the best quote possible - you might be surprised at the savings you can make by simply switching companies.
2. Increase your excess
A higher voluntary excess can make a serious impact on your insurance quote. You might not think twice about leaving the insurer’s standard excess on the application, but check the difference it makes. Of course it will leave you out of pocket should the worst happen, but it will make a significant dent on the upfront payment.
3. Cut the extras
Windscreen cover, legal assistance and a free courtesy car may all add to your premium. So think about stripping them out or opting for a no-frills insurer who simply doesn’t include them in the package if this is something you believe it’s not needed.
4. Think about cutting your mileage
Don’t lie about your mileage, that could get you into trouble, but really consider how far you drive and opt for that mileage bracket. Even think about cutting your car usage - it will make a major difference.
5. Change your car
It might seem extreme, but if you’re driving a car with a large engine, one that is known to be targeted by thieves or a model that is involved in lots of crashes, then your premiums could be significantly higher. Check the insurance prices for other models, you might find an ostensibly similar sort of car is much cheaper to insure.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk