How to reduce your car insurance premium

Keep your mileage realistic

Calculating your mileage carefully could save you lots of money. If, in reality, you’re going to be driving 5,000 miles per year, you shouldn’t be paying for a policy with an annual mileage of 10,000 miles. But don’t be tempted to say you’re driving fewer miles than you actually are, as this could invalidate your insurance.

Add an experienced driver to your policy

Adding another driver with a clean license and several years’ claim free driving to your policy could reduce your premium. But if you are the main driver, make sure you’re noted as the main driver on the policy. If you say the other person is the main driver because they have a better driving history, you’re committing a fraud known as ‘fronting’ and this could invalidate your insurance.

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Buy a small engine

Your insurance premium will be more affordable if you drive a standard car in a low insurance group and with a small engine, preferably under 1,000cc. It may not be your dream car with a high top speed and modifications but it may be wise to drive something smaller and slower until you’ve built up some no claims bonus and a safe driving record.

Cars which typically fall into the group one insurance band include:

• Smaller engine variants of the Nissan Micra
• Ford Ka
• Vauxhall Corsa
• Suzuki Alto
• Toyota Aygo
• Citroen C1
• Peugeot 107

Consider your excess

You may be able to lower your insurance premium by increasing your excess. But you will need to decide if paying a slightly lower premium is worth the risk of having to contribute more towards the cost of a claim if you have to make one.

Consider the cover you need

Do you really need a courtesy car as part of your policy? A number of insurers include the use of a courtesy car as a standard feature of the policy. But some insurers now offer this as an optional extra and if you think you could manage without a courtesy car while yours is taken off the road, it’s worth seeing how much you could save by removing it from your policy. And some policies include other features such as breakdown assistance and legal cover which you may not need but may still be paying for. Check exactly what cover is included within your premium to ensure you are only paying for the services you need.

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Go ‘telematics’

Telematics policies take two forms; pay-as-you-drive and pay-how-you-drive policies. This type of policy relies on a tracker that is fitted inside the car; it allows insurers to adjust your premium according to your driving profile. These policies work by offering a discounted premium if you keep the number of miles you drive, particularly during peak times (morning and evening rush hours, and late night driving on weekends) to a minimum or if your driving style is proven to be safe and sensible. For more information these type of scheme visit our insurance page.

And remember…

After the 21st December 2012, a new law from the European Court of Justice will come into force which says that insurance companies can’t use gender as a risk when calculating insurance premiums. This could mean that the premiums of young females rise considerably. So don’t pay more than you have to.

Take note of the above tips; act now and reduce your insurance premium with GoCompare.