How to Cut Car Insurance As Premiums Rise

Hard-hit motorists have been dealt a blow as a survey of underwriters reveals that 92 per cent expect an increase in car insurance premiums this year. So how can consumers keep their costs down?

According to the survey by Aon, insurers are attempting to make up for three or four years of offering competitive rates as well as coping with an increasingly tough economic environment and rises in the number of claims.

With car insurance premiums heading north, it would be easy for consumers to bury their heads and just accept that their costs are going to increase. However, that does not have to be the case.

Firstly, drivers should ensure they shop around whenever their renewal is due. Don’t accept what your existing insurer offers you - at least take the time to see if you could find a better deal elsewhere. This needn’t involve approaching insurers directly or even dealing with brokers - it can be done in minutes with a quick search on a comparison website which will highlight the cheapest deal for your circumstances.

Even if you don’t use a comparison website, you should at least apply for a new car insurance deal online. Most companies offer their leading deals to new customers on the internet due to the lower overheads.

From there, look at ways to earn discounts. Safe driving is the key - as this will earn you a no-claims discount, so try and stay accident free. Try and avoid driving convictions too, so watch your speed.

If you have the money ahead of time, pay your car insurance premiums annually instead of monthly as this will cut out monthly interest charges. Reduce the number of named drivers on your policy, park in a garage overnight if one is available and increase your voluntary excess to earn further savings.

For cheap car insurance consider making investments that offer long term savings. Enhancing the security of your car or taking an advanced driving course for example, could all help to slash your car insurance premiums in the long run.

Alex_Gregory


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