Posted on: 28/02/2014
We love to save money at Recycle Motors. And when we heard the news that the average price of UK car insurance was decreasing, well, you can imagine our excitement.
Car insurance premiums plummeted by the largest amount in 2013 since the AA started tracking them 20 years ago. In 2013 there was a 14.1 per cent drop, meaning that in the last two years more than £100 has been sliced off premiums.
And the good news doesn't stop there.
A joint initiative between insurers and the DVLA is expected to cut a further £15 from premiums. The aim is for drivers to provide insurers with their driving licence number. This will allow insurers to include every driver's experience, their convictions and the date they passed their test. Cutting out errors like this and streamlining the insurance application process will lead to the average £15 reduction.
While this is all fantastic news, insurance prices cannot keep falling. And some believe that with such a sharp fall, there will be a steep bounce back with price increases.
1. Anyone who has bought insurance will have probably figured out that it's cheaper to pay annually than by monthly direct debit.
That's because insurers charge interest at an average APR of 23 per cent for monthly payments.
2. Get a ‘new’ quote from your existing insurer
Often applying to your existing insurer as a new customer produces a cheaper price than its renewal quote. Insurers put out more competitive prices to attract new customers so simply start again and you could be better off.
3. Consider how much you’d really claim for?
It's worth considering going for a policy with a higher excess (the amount of any claim you need to pay yourself). Many people will find that claiming for less than £500 worth of damage both increases the future cost of insurance and can invalidate no-claims bonuses, meaning it’s not always worth making a claim.
4. Drive someone else’s car on your insurance
If you have fully comprehensive insurance then often, although not always, it includes what’s called ‘driving other cars’ cover. This provides you with Third Party cover whilst reducing your mileage and therefore the cost of your own policy.
5. New car, free insurance
Buy a new car and it may include free insurance for a few years. While this is only worth a few hundred a year to an experienced driver, to a young car owner it could be worth thousands and is well worth taking into account when you add up overall costs.
6. Take an additional driving course
PassPlus is a Driving Standards Agency course aimed at helping new drivers (within 12 months of passing their test) become more confident on the road. There are six modules; town driving, all-weather driving, driving out of town, night driving, driving on dual carriageways and driving on motorways.
For further tricks on how to save money with your insurance, click here.
We can help you lower your insurance premiums even further by helping you sell your old car, so you can afford a more insurance-friendly model. Click here to find out how Recycle Motors can help you sell your old car at a good price.
Contact us on: 01795 227576
Go direct to an agent: 07583 734602
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