There are many costs which we have to think about when we have a car such as servicing, MOT, fuel and tax and insurance is also a big expense. For some people the insurance will be a lot higher than others. If you have made a few claims on your insurance, you are young or you have a valuable car then your insurance will be higher than those who never make claims, are older or have a less valuable car. Obviously, you cannot force yourself to age, but you can ensure you only make necessary claims and you can decide whether to buy a cheaper car. There are other things you can do though, to keep your car insurance lower. 

Compare insurers

The best thing you can do to keep costs down is to carefully compare the different insurers. They will vary in price and you will find that you can save a significant amount of money if you swap to a different insurer. You will often have a yearly renewal notice and this is the opportunity to look and see whether there are other insurers that are cheaper. It can be useful to go to a comparison website and see what sorts of prices you can get there from different companies. You will probably find that the very cheapest will be companies that you have not heard of. You may not be keen to use these insurers but if you use MSE’s comparison website it will tell you what their customer service is like and this will help you to make an informed decision as to whether you feel that they will work out well for you.

It is wise to make sure that the insurance cover that is cheaper will give you the same cover as you are already getting. There might be certain parts of the cover that are really important, perhaps that you need the vehicle insured to drive to work or you want a curtesy car if it is in for repair after an accident, so make sure that you consider this and make sure these are included. You could find the cheap price is just for basic cover and you will have to pay extra for these, but you could still end up paying a lot less by switching.

It can seem like a lot of hassle to do this each year. However, if you spend half an hour a year looking into it and save money, even if it is £50 it is surely worth it as most jobs will not pay £100 an hour, but by working for 30 minutes to save £50 that is what you are effectively earning.

Have other family members on it with you

If you are considered to be a high risk driver, perhaps because you are young or have made a big claim recently, you might find that it will be cheaper if you put another driver on the insurance with you. For example, some teenagers find that if they put a parent on their insurance who has a large no claims record then this can lower their insurance costs. It may also be cheaper to be with an insurer that other household members are with to keep the costs down as well. It is worth investigating this. Some insurance companies will offer family discounts and others will not and so it is good to find out who does and see whether you can save money if you use them.

Pay in a lump sum

Often an insurance company will offer the option of paying for insurance in a lump sum or monthly instalments. The instalment option can make it much easier to manage your money as you will be able to spread the cost and not worry about finding a big chunk of money in one go. However, very often, using the monthly instalment option will be more expensive. It is worth checking this carefully. Obviously, if you cannot afford the lump sum, then monthly instalments may be your only option or you might be able to get a loan to pay for it but that may cost even more so you will need to check. It might be that you will have to pay monthly this time, but try to put some money aside each month so that next year, you will be able to afford the lump sum payment and then save money.

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