Although car insurance is a necessity when you own an automobile in the UK, it does not necessarily mean that you have to spend a small fortune every year for your insurance premium. The good news is that there are various ways in which you can avoid paying too much, thus allowing you to save some cash. Here are some of the tips that you can use.
- Before you buy a car, decide which car best suits your insurance premium target.
One of the things you need to consider when purchasing a new car is whether you can afford repair costs, finance costs, and even the cost of replacing that vehicle. There is no shortage of dealerships selling new cars in the UK, and flashy cars are all over in the UK streets. However, more expensive or higher engine capacity vehicle will attract higher insurance premiums, so if you want to purchase a vehicle that will require you to pay more for insurance.
Compare insurance premiums from different insurance companies.
Another avenue through which you can save some cash on insurance payment is by comparing the similar insurance premiums from different insurance companies. This will allow you to identify which insurance company charges fair prices and which one overcharges for similar packages. Obviously, in this case, you should go with the former. However, it is also a good idea to check the track record of the insurance companies offering lower premiums. Sometimes insurance companies with cheaper offerings have a bad reputation, thus the need to strike a balance between cost and reliability.
- Drive responsibly
Safe driving habits are a great way of achieving your goal of saving cash in car insurance. This is because safe driving will allow you to avoid accidents, which may end up raising your insurance rates. You get to save cash through discounts offered by car insurance companies for safe driving.
- Commute less with your vehicle
Insurance companies charge higher premiums to customers who use their vehicles more. This is because spending more time on the road will attract higher insurance premiums since that increases the probability of being involved in an accident. If possible, try to use public transport means for regular commutes. It will reduce your car usage, thus allowing you to secure a lower insurance premium package, and it is also cheaper.
- Amalgamate your insurance policies
One of the best ways to save on car insurance and other types of insurance is to combine them, and fortunately, some insurance companies that operate in the UK allow you to do this. This means that you should consider combining your car insurance, home insurance, and other types of insurance that you may have so that you can take advantage of discounted prices. This could allow you to save a significant amount of cash compared to what you would have had to pay if the insurance packages were separate.
- Subscribe to a decreasing premium
Cars are depreciating assets, and thus you should consider subscribing to a depreciating car insurance premium so that it will be lower as the vehicle ages. This will allow you to save more on car insurance every year.
- Take advantage of Deductibles
Insurance companies usually charge lower premiums when customers add higher deductibles to their car insurance. Deductibles refer to the amount of money that you are willing to pay in case your vehicle is involved in an accident before your insurance company pays for the repairs. Note that the reverse is also true, where lower deductibles also contribute to higher insurance premiums.
- Select an insurance company with a good rating
Choosing an insurance company with a positive rating is a good idea because they will likely come through for you when you need them. Their offerings will also likely cover more, thus ensuring that you do not have to dig into your pocket to cover some of the costs.
