Money Saving Tips for Car Insurance

Unfortunately, getting car insurance is rarely an inexpensive affair, with large numbers of uninsured drivers pushing premiums higher than they should ideally be.  However, there are a number of money saving tricks and tips available to the canny driver to keep your insurance costs to a minimum.

Choose the Right Policy

It doesn’t matter how good an insurance quote is if it’s the wrong kind of policy for you.  Take some time to carefully consider which policy will suit your circumstances best.

Third Party:  Traditionally, this was the cheapest kind of car insurance policy as it only covers you for any damages caused to another party’s vehicle and to any passengers travelling in your car.  Any damages to your own car you will have to take care of yourself.

Third party cover is suitable for drivers who are under 25, have a car worth less than £1,000 or live in a high risk area.

Third Party, Fire and Theft:  As you might expect, this type of cover is the same as the previous type but with the insurance provider will cover you if your car is set on fire or stolen.

Fully comprehensive:  As the name implies, fully comprehensive car insurance offers you the greatest level of cover.  Not only will you be covered for all damages to all vehicles involved in an accident, regardless of fault, it also covers things like accidental damage and vandalism.  So if someone prangs your car while it’s parked on the street then drives away you’ll still be covered.

You would assume that this type of insurance would be the most expensive but oddly enough it can often work out cheaper than a third party policy.  This is because the insurance provider assumes that you care more about your car if you go for fully comprehensive cover and are therefore less likely to have an accident as you drive more carefully.

How to Save on Car Insurance

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“I could have saved a lot of money on my car insurance”.  This guy is realizing he could have saved a lot of money on his car insurance. by Uffdah!!!, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

Drive Within the Speed Limit

Every car insurance quote will depend on a wide range of factors; from the type of car you drive to the area you live in.  Some factors are out of your hands but there are a number of things you can do to keep the price down.

Driving carefully might seem like an obvious tactic but it really is the most effective way of reducing insurance costs.  A single speeding conviction can bump your quote up by approximately 5%, whereas multiple offenses can increase it by a whopping 20%.  So by merely obeying the speed limit you can avoid an unpleasant hike in insurance costs.

Stay Off the Mobile

The safety implications should be enough to discourage anyone from using a mobile phone while driving anyway but here’s an added incentive for you:  if you’re caught doing it, some providers will double your insurance quote.

Park Protectively

Where you park your car is another important consideration when trying to get cheap car insurance quotes.  If you leave your car in a driveway or garage it serves as a major plus point that shows insurance providers that it is less likely to suffer damage or be stolen, often reducing their quote by between 3-7%.

If you don’t have a garage or driveway, at least try to pick a regular parking spot that is in a well-lit area.

Avoid Modifications

Any boy racer with serious modifications to their car will tell you that the more modifications on your car, the greater the insurance costs.  It’s imperative that you tell your insurance provider about any modifications done to the vehicle, regardless of whether you or a previous owner did them, otherwise they might invalidate your policy.

Fit Security Devices

The exception to the modifications rule is security devices which for obvious reasons will reduce our insurance quote.  If you can afford the initial outlay then an immobilizer or GPS tracking device will pay dividends in the long term.

Tom
 

Arnel Ariate is the webmaster of Money Soldiers.

Click Here to Leave a Comment Below 21 comments
Thomas | Your Daily Finance - June 24, 2013

The type of car helps as well. Getting a sports car verses driving a Volvo can have a huge impact on the amount you save for insurance rates. If you are a younger person maybe being on your parents insurance until you are of age where you rates drop.

Reply
    Arnel Ariate - June 24, 2013

    That’s a good tip, Thomas. It helps to get a car that is the most appropriate for your needs.

    Reply
sabrina saada - June 24, 2013

A couple other suggestions:
When requesting a quote from a car insurance representative, mention any memberships (like AAA), school affiliations, or good grades earned while in school. It could save you a couple hundred dollars off of your insurance. Thanks!

Reply
    Arnel Ariate - June 24, 2013

    What a very good tip, Sabrina! I didn’t know your good grades in school will come in handy when getting car insurance.

    Reply
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Victoria Neslon - July 1, 2013

In addition to these helpful points, there is one more point which gives you handsome discount on your premium rates. Insurance company always appreciate loyalty, they always give benefits to the customers which are loyal to them. You may buy your home insurance with your car insurance policy to get lower premium rates.

Reply
    Arnel Ariate - July 4, 2013

    What a great idea, Victoria. Loyalty pays. 🙂

    Reply
IGA Insurance - July 3, 2013

It really helps to shop around! I have always found that smaller and more local agencies provide the best coverage for the most affordable price. Their customer service tends to be much better too!

Reply
    Arnel Ariate - July 4, 2013

    Thanks for the tips, Jenny. It’s a very good idea to shop around before committing to a purchase.

    Reply
savecard - July 21, 2013

Sometimes the cheapest occur to be expensive. But it’a a good advice to get only third party insurance if you are young driver and own cheap first car. In my opinion the first car should always be some cheap vehicle for the drive gain some driving experience before speed up and down a good one car. The most important is to drive safely, not only because of the insurance’s lower price, but for your own safety.

Reply
    Arnel Ariate - July 22, 2013

    That’s a good point that sometimes the cheapest occur to be rather expensive. It pays to be thorough in your analysis. 🙂

    Reply
Hollman Insurance - July 24, 2013

Also, on most sites these days like Geico, you can get a quote for several other companies.

Reply
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James Thomas - August 21, 2013

Safety is the first preference of every driver. Your article gives us an idea that how to get safety on road. And it will help us in getting a good and cheap insurance. Safety tips like drive carefully, Stay away from mobile, Park your vehicle carefully etc. their are some good rental or taxi services that provide you a safe journey abroad.

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Jim - February 17, 2016

Great tips.

As a credit report expert, I can say that it affects your prices a lot … Keep good credit report and you save a lot of money, not only on cart insurance.

Hope that helps.

Reply
Allen Foster - April 26, 2017

Nice tips here Jesse. Thought I will add to it by saying that you can also ask for a student discount if you are in school. Almost all car insurance companies will give you a special student price.

Reply

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