TRYING to find the best deal on your car insurance is enough to drive anyone to despair.
But with premiums soaring, it’s never been more crucial to find little ways to keep costs down.
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New research found that average car insurance premiums have rocketed by almost 50 per cent over the last year – and those hit the hardest are millennials and older people.
In a chat with The Sun, Ryan Fulthorpe, an insurance expert at Go.Compare, revealed why Brits are having to pay more for their vehicle coverage.
He says: “The recent rise is in reaction to the increases insurers are facing when having to pay out for claims. Every claim cost from car parts, labour, materials, energy and operational prices have increased and unfortunately, those costs are now being passed on to motorists.”
But fortunately, you can work around the record-high prices to drive down premiums using these clever tips.
29 day rule
Ryan believes it’s crucial to get on top of trying to find a new deal and not leave it to the last minute.
“Go.Compare has done some research and found that purchasing your insurance 29 days from the point of renewal is the cheapest point you’re able to do so,” he explains.
“The price increases the closer you get up to your renewal date. So if you’re buying on your renewal date or just the day before, you’re likely going to be paying a substantial amount more than you would be if you look to purchase 29 days out.
“With some people, it could be just their memory or what they have going on in their lives at that point.
“Purchasing car insurance is not at the top of everybody’s list but as it is a legal requirement and because it can be quite costly, we always look to say try and get organised with it to drive the costs down.”
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Shop around
Ryan believes going for the first deal you find is never a good idea as you may come across a much cheaper option.
He explains: “What you might get from your insurer at your point of renewal may not be the cheapest premium available to you.
“Also, your level of cover may change so it’s best to use a comparison website or shop around for the best premium.
“If I take Go.Compare as an example, we give away £250 excess for the policies bought by ourselves. That could go into your back pocket should you have the worst happen.”
Driveway benefit
Many customers have been stuck with pricey car insurance as a result of minor details while filling out their forms.
Paying close attention to the information you give out, can help ensure that you are not paying too much than you should.
Ryan explains: “An example of that is if you’re looking to park your car on a driveway, make sure you say that and are not saying you’re going to park on the road overnight because that could be more expensive.
“Look out for more flexible options available to you that could bring the cost down.”
Describe your job carefully
Ryan continues: “Another thing to watch out for is occupation. We always say to put the right occupation in but there are different occupations for the same career that could yield a cheaper insurance premium.
“An example could be a cook and a chef – have a look to see what could be potentially cheaper. Another example is a fashion shoot photographer may have a higher premium than a wildlife photographer.
“That’s because of the level of risk that can be attached to a fashion photographer, because you could be going to expensive sets and working closely with models.
“You may have them in your car. If you’re looking to film local wildlife, it’s less likely you’re going to have an expensive claim off the back of that.”
Forecasting mileage
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It is extremely important to give out accurate mileage details as it can make a huge difference in the quotes you get.
Ryan says: “What a lot of people do is they will select a random number of say 10,000 miles for what they’re going to do over the next 12 months, when in reality they could be doing only 7,000.
“So it’s just to make sure that you are more accurately forecasting your mileage going forward. The best way to look at that is your most recent MOT.
“There, you can see how many miles you did and work out whether you think you can do more or less than that based on what your activity is going to be for the next year.
“It’s important to limit your mileage to a more accurate level.”
Don’t pimp your ride
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You may have watched MTV’s Pimp My Ride in awe of all the potential additions and modifications a car can have.
But Ryan advises avoiding add-ons at all costs if you’re looking to pay less for your car insurance.
He says: “It could be making it more attractive for criminals to steal items from. It could also mean you’re more likely to get into an accident because of something you’ve done.
“Things like adding alloy wheels, body kits, and performance upgrades can make your car a lot more expensive for insurers.”
Types of cover
Knowing the type of coverage you need before paying for car insurance can save you thousands of pounds.
“If you’re a younger driver, is a telematics policy better for you?” says Ryan.
Telematics – or ‘black box’ insurance – means having a device installed in your car that can monitor your driving style and habits.
Ryan continues: “If you’re a more experienced driver, that’s potentially driving fewer miles now, especially since Covid, is a pay-per-mile option better for you?
“That’s when you only actually pay for what you drive and when that car is parked on your drive – rather than having a fully comprehensive cover.
“Make sure that you’re adequately covered without taking out more than you need.
“Do you need breakdown cover or do you already have it through your bank? Rather than potentially paying twice, you will end up only paying for what you need.”
Pay annually
Although this option may not be feasible for everyone, Ryan says it is best to pay in one annual sum rather than monthly instalments.
“Paying annually means that you’re not going to incur any interest costs, which you will likely have when you’re paying monthly,” he says.
“If you can’t do that because you don’t have the cash in the bank to be able to do so, you could look at a 0% interest credit card.
“That could be a good way of paying annually and keeping your cost down.”
Increase your voluntary excess
This is the amount of money you decide to pay towards your car insurance claim. It is different from the amount of money that’s compulsory for your insurance.
“This is something I’d only advise to do if you’ve got that money in the bank to be able to do so because you never know when an accident could occur,” says Ryan.
“If you were to increase your voluntary excess, that could bring your base premium down so you’d be paying less on a monthly basis.
“Should you not need to claim, then you wouldn’t have to pay that voluntary excess out.”
Adding extra drivers
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Although this doesn’t always guarantee your premium would go down, it can help in some cases.
If a younger driver adds a named driver who is older and has more experience on the road, they could see their cost lowered.
However, if an experienced motorist was to add someone who just passed their test to their policy, insurers may look at them as a higher risk.
Ryan says: “It can differ on each individual circumstance. Some insurers may see more people driving the car and make it cheaper but conversely, it could be the opposite as well.
“It’s definitely something to look into.”
Car owners are bearing the cost of labour, energy, and car parts, driving premiums high
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