Five Tips to Cut the Cost of Vehicle Insurance
The cost of vehicle insurance premiums in the UK has skyrocketed over the last four years, increasing by an estimated 80 per cent since October 2008. While the Commons Transport Committee is currently investigating the reasons for the rise, the exorbitant cost of insurance is still a very real concern for the average driver.
If your insurance is up for renewal, or you’re in the process of comparing the rates of various providers, here are five tips to help you cut the cost of your vehicle insurance.
1. Choose your vehicle wisely
The vehicle that you purchase can have a radical impact on the cost of your insurance, so it’s important to exercise caution when choosing the right vehicle to suit your needs. If you’re a high-risk driver, owing to your age or driving record, choose a cheaper vehicle with a smaller engine, as this will help to lower the total cost of your insurance.
If space is important, be intelligent about your choice of vehicle. Instead of purchasing a large 4×4 with exorbitant insurance premiums, for example, small pickup trucks offer a drastically cheaper alternative, while still meeting your space requirements.
2. Add a second person to a high-risk driver’s insurance policy
One of the two determining factors in calculating your insurance cost is your risk profile. By adding a second driver with a good driving record to your insurance policy, it’s possible to lower your risk profile and ultimately reduce your insurance costs.
3. Exercise greater caution
The perceived risk of theft or damage to your automobile is an important consideration when you are quoted an annual figure for your vehicle insurance. Leaving your car on your driveway, or in a private garage, reduces the risk of theft or damage, which could see the cost of your annual vehicle cover reduced by around five per cent.
4. Take an advanced driving test
Taking an Advanced Driving Test from the Institute of Advanced Motorists, or taking the Pass Plus test, instantly confirms you as a safer driver in the eyes of your insurers. Although the exact discount that drivers receive will vary, you could reduce your total insurance costs by up to one third.
5. Pay for your annual insurance premium upfront
Although most people tend to pay their vehicle insurance in monthly instalments, this is by far the most expensive way to cover the cost, as insurance companies inflate the total payable cost by anything up to 30 per cent.
If you’re looking to make a real saving on your vehicle insurance, pay the full cost of your annual insurance in one payment. This move may, understandably, be prohibited by cost. If this is the case, you may like to consider taking out an interest-free credit card and repaying the full amount back in manageable monthly instalments.
In conclusion: exercise a little common sense
When it comes to lowering the cost of your vehicle insurance, common sense goes a long way. Try to put yourself in the shoes of your prospective insurers and make intelligent decisions that will lower your risk profile; it’s considerations like this that could save you hundreds of pounds each year.