Auto Insurance: How to Get the Right Policy at the Best Price

advance purchase

Auto insurance is a necessity, but with household expenses skyrocketing, many drivers are looking for ways to keep costs down.

Don’t let your insurance purchase stand until your renewal date. Ideally, compare policy costs three to four weeks in advance.

According to comparison site Go.Compare, buying a cover 21-26 days in advance can be much cheaper than buying it the day before.

Ryan Fulthorpe, auto insurance expert at Go.Compare, said:

So, he adds, it’s important to leave enough time to ensure you get the right policy that fits your needs and budget.

to shop

According to Comparethemarket, the average annual premium is £571, rising to £1,277 for younger drivers (ages 17 to 24).

As a driver you should at least buy a third party cover.
Photo: George Mdivianian/Getty Images/EyeEm

changes in industry rules, Enforced in January of this yearThis means that insurers are prohibited from offering policyholders higher renewal prices than they offer to new customers.

Nevertheless, the website says it’s worth comparing the costs, with people believing that shopping saves them an average of about £328 a year.

There are many comparison sites. In addition to the two mentioned above, there are companies such as Confused.com and Moneysupermarket.

As a driver you should at least purchase third-party insurance, but be aware that this is not necessarily cheaper than fully inclusive insurance. This is because many high-risk drivers tend to opt for third-party coverage as a way to cut costs, and the number of claims against these is often high.

Get Black Box Policy

Black-box (or telematics) insurance rewards safer driving. This is especially beneficial for young drivers who may be hit with very high insurance premiums, but there is generally no age limit when it comes to purchasing insurance.

Insurance companies typically ask you to attach a small device to your car or download a smartphone app that monitors your driving and sends data.

This device or app uses information such as driving speed, smooth braking, and time of day to drive to determine your score. This is then used to calculate insurance premiums, hopefully reducing them significantly over time.

There are dozens of black box insurance brands such as Admiral LittleBox, Tesco Bank Box. insuranceinsurethebox, Autosaint, Bell, RAC Black Box Insurance and Carrot Insurance.

who to add to the policy

If you’re an older driver, adding a younger driver can jump up your insurance premium. Insurance companies typically classify younger drivers as higher risk, which can increase costs. However, adding the names of older relatives as designated drivers can reduce costs for younger drivers.

However, this is illegal and occurs when a parent or senior citizen claims to be the primary driver of the insurance policy.

Vehicles driving on the M4 motorway near Bristol in 2018.
The lower the mileage, the cheaper the premium. Photo: Ben Virtual/PA

Note that you can have two separate policies for the same vehicle.

Depending on who your driver is, this could be your best option as even if someone else has to make a claim it won’t affect the no claim bonus.

reduce mileage

The lower the mileage, the less likely you will be able to make a claim, so your premiums will be lower.

Please check your MOT certificate to verify your mileage for the previous year and do not overestimate this when applying for insurance.

Consider whether you can reduce your mileage, such as traveling by bicycle or bus.

In addition, gas prices are higher, so using other modes of transportation can also reduce your overall travel costs.

However, you must be honest when applying for compensation as your claim may be denied if your mileage does not match.

A rural bus service bus on a narrow country road in Suffolk, England, UK.
Have you ever considered other modes of transportation to save on driving costs? Photo: Graham Turner/The Guardian

do not modify the car

Any changes you make to your car, such as installing alloy wheels or tinting windows, can significantly increase your insurance premium.

Sara Newell, auto insurance expert at Moneysupermarket, said: Other common customizations include a tow bar and engine management system. ”

She calculates that drivers with high-performance cars are more likely to be involved in a crash, and insurance companies should pay more because many modifications improve the performance of their cars. .

“Also, modified vehicles are often more attractive to thieves, increasing the risk of theft and therefore higher insurance premiums.”

Always check with your insurance company to see if you will have to pay any additional charges before making any changes. Failure to do so may invalidate the policy.

consider your profession

When applying for compensation, be honest about what you do for a living. However, you may want to think about how you would describe what you are doing.

According to Moneysupermarket, soccer players and fast food delivery drivers are the most paid.

Typically, you should select from a drop-down menu of occupations, but some titles may work.

mini
Kei cars that are popular with young drivers can be expensive to insure. Photo: Marc Boland/Getty Images

For example, if you work as a journalist, you might call yourself a writer or publisher, but if you’re a chef, try describing yourself as a caterer instead (if that option is available). ). This reduces costs.

low insurance model

You can see which group your car is sitting in tool At Parkers, a website for car ratings, reviews and advice.

These range from 1 to 50, with fewer groups having lower premiums.

As you can imagine, the most expensive group is full of powerful sports cars, while the cheapest group contains a lot of hatchbacks. We recommend that you check whether

For example, Parker said the smaller Citroen DS3 is in the same category as the Range Rover, but some models are especially popular with younger drivers, so a Mini can be expensive to insure.

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