It is no secret that car insurance costs a fortune in the UK. At the same time, it is not something you can skip because you are legally obliged to take out a car insurance policy if you own a car. That is why, car owners are always on the lookout for cheap car insurance packages that are affordable yet comprehensive.
We know just how difficult it can be to find a car insurance policy that checks all the boxes, mitigates your risks and fits into your budget at the same time. Insurance can be a confusing domain and aggressive salesmen trying to sell you optional covers do not help at all.
But did you know you there are practical steps you can take lower your insurance premium and obtain a cheap insurance package in the UK? Here are 5 tips for finding the right car insurance policy:
- Car Selection; Factor in Insurance Expense
This tip is only for those who have not bought a car yet. If you already have a car, skip it. Now, lets come to the subject. How much your car insurance policy costs depends on various factors such as the make, size and type of your car.
As a general rule, cars that are smaller have a lower premium and cost less to insure. Cars that are imported are more expensive to insure because finding spare parts is difficult and that drives up the cost of repairs. Sporty car models and classic car insurance packages are also pricier.
Your car is cheaper to insurance if:
- It is reasonably cheap
- Has inbuilt security features such as alarms, trackers and immbolisers.
- Has a sturdy exterior with a strong bumper
- Is easy to repair and its spare parts are accessible
- Small engine, preferably low performance
- Compare Quotes: Do Your Research & Shop Around
This step is the bread and butter of shopping for car insurance, regardless of whether you are a new car owner who is buying insurance for the first time or renewing your existing package.
If you are purchasing insurance, do your background research and look up quotes. Compare like-for-like insurance packages because some cheaper car insurance policies do not provide the adequate coverage to your vehicle.
The best insurance packages combine comprehensive coverage with an economic premium. You can begin your price search however you are comfortable. You can save time and check quotes online on insurance comparison websites or you can drop by at a few insurance companies an brokers to check the market price.
If you are renewing your existing car insurance package, you should still shop around first and look for a cheaper quote or more extensive coverage. Do a cost benefit analysis or hire an insurance intermediary to determine the right price.
- Know Your Options: Bargain and Ask for a Discount
Insurance industry is pretty competitive in the UK with over 1600 insurance brokers competing for clients. Discounts are bountiful in such competitive industries.
Some car insurers are willing to offer discounts to cars fitted with security devices, drivers who have had formal training and car owners who are generally considered low risk; drivers who are older, married or have a safe prior record.
Take advantage of these offers to the fullest and compute the total costs and compare rival insurers accordingly. You can also directly ask your insurer for a discount or bring them a competing quote and bargain with them.
- Protect Your No Claims Bonus
Protecting your no claims bonus is one of the best ways to lower your car insurance costs. That is because the lesser you claim, the more pleased your insurers are with you. If you do not claim, insurers provide you with a no claims bonus.
A no claims bonus is a big advantage because it grows every year you do not file for a claim. Most insurers follow this scale generally:
- 30 % off after a year has elapsed
- 40 % discount in year 2
- 50% discount in year 3
- 60% discount in year 4
- 65% discount in year 5
With this rubric in mind, suppose you have to file a claim because you have had an accident. You would typically lose 2 year’s worth of no claims bonus and that might increase your annual or monthly premium.
If you have an accident and you choose not to claim, you will retain your bonus but your premium might still go up. Regardless of whether you file a claim or not, it is important to inform your insurers about any accidents.
- Increase Your Voluntary Excess
Increasing your voluntary excess or deductible is also a way to lower your car insurance premium. Voluntary excess is a set amount you have to pay for in case you file a claim. If you, for instance, choose to contribute more towards your repairs, you will do that in the form of excess payments.
If you increase your voluntary excess funds, you will have to pay a lower premium. We recommend that you keep in mind the total value of your car while deciding the excess funds. It would be a clear disadvantage to raise the excess too high if you own a low value automobile.
Confused? Get Help from Insurance Experts
IC Insurance Solutions is one of UKs leading insurance intermediaries. If you have any queries about car insurance process or require guidance, do not hesitate to contact us. We specialise in providing cheap car insurance packages tailored to suit your specific requirements.