Car insurance has to be the single worst expense when it comes to driving, and that’s because there seems to be no method to the madness and no reason for why premiums are so high.


That is where we come in because we have spoken to a wide range of car insurers and come up with a comprehensive list of ways in which you can lower your insurance costs. And don’t worry, we’re not going to waste your time with obvious suggestions like have a good driving record. Enjoy.


Always, Always Shop Around


As with everything in life, every company offers a different price, so it absolutely pays to shop around. It could be that you do your research and see what are the three cheapest insurers on average, and then approach them to find the best quote. However, to save a huge amount of time and hassle, we suggest you speak to a professional service, such as Money Expert, and get them to compare prices on your behalf. The benefit of this is simple; these companies have a huge database and a massive range of underwriters that they do business with, meaning you are getting the best deal from hundreds of insurers.


Another great tip is to always buy your insurance over the phone and not the internet, and that is because you will be able to discuss your needs with a person and massively improve your chances of lowering your costs. The problem with the internet is that you are interacting with a machine that is based on an algorithm, and typically means you may end up paying over the odds for excessive cover you don’t need.



Go With A Higher Excess


Excess is quite simply the amount you have to pay before your insurance policy can be used. This may seem like a foolish thing to do, but the chances you are involved in a crash are statistically unlikely, so why pay more for insurance when you may not need it. As such, we recommend you pay a higher excess and lower your premium costs by a substantial amount. Let’s say you increase your excess from £200 to £500; chances are your premium will be reduced by anywhere between 15 and 30 percent. Go with a £1000 excess and you could see your premium costs slashed by up to 45 percent. However, before doing this, it is always wise to have a lump sum saved and put to one side to cover the amount of excess you have agreed to.



All Insurance Under One Roof

The competition in the insurance sector is fierce, which means they try and offer great deals to attract your business. One of the most common and most cost-effective methods they use is to offer their customers a hefty discount when they buy two different types of insurance. As such, see if you can get a deal for getting both your house and car insurance from the same company. Another trick is to get multiple cars insured through the same company, so see what discounts you can get for multi-policy business when you shop around.

Do You Really Need Comprehensive Cover


This is a question that needs asking if you own an older car. Comprehensive cover is incredibly expensive compared to other insurance policies, such as Third Party, Fire & Theft. As a basic rule, if your car is worth less than 10 times the premium, then purchasing comprehensive cover may not be the most effective avenue to go down. As such, we recommend you go online, or to a local dealer, and find exactly what the retail value of your car is, and base your decision off the back of this.



Credit Rating Always Has A Say


Yup, a good credit history can have a huge impact on your insurance premiums, and that is because insurer almost always uses credit information to price their car insurance policies. The reason for this is because research has proved that those who maintain a good credit rating] have fewer claims. As such, we recommend you pay close attention to ways in which you improve your credit rating, such as paying bills on time and keeping balances as low as possible.



Do Less Miles

We all think we do the national average of 10-12,000 miles a year, but we don’t. Chances are, you did around half of that last year. However, we will say it again next year because we’ll panic. But stick to your guns and take advantage of the discounts offered to drivers that do fewer miles. You’ll be surprised at how much cash you can save by dropping from 10,000 miles to 8,000.