Car Money
With car insurance prices rising, almost 6% in the last year, the cost of being on the road is getting more expensive. The latest statistics show that car insurance for drivers in their twenties is the highest out of all the age groups. For people in their fifties an average cost for insurance is around £600 year while those in their sixties have to pay even more.

To get the best out of your car insurance, here are a few tips:-

  • Check out how much fully comprehensive car insurance is. Third party insurance covers only the person you have a collision with as well as their car. Comprehensive insurance covers your car, fire and theft along with any damages to a third party.
  • If you’re deemed to be a high risk driver because you are young, add someone else to the policy who is a lower risk. This can lower the cost of your car insurance policy considerably.
  • Try and pay for your policy in one fell swoop. Monthly payment plans incur high interest rates. Alternatively you could use your credit card which may have a low APR rate while a 0% credit card will ensure payments are affordable. Always check with your insurance company for extra fees if you do pay by credit card.
  • Don’t automatically renew car insurance with your current insurer. More often than not, insurance companies overcharge if you stay with them, so take a look at comparison sites on the internet. Why not call your insurer to see if they can match a lower quote you have found?
  • For the over fifties, it’s not a good idea to alter the look of your car with fancy alloy wheels, spoilers etc., Insurers will certainly charge more if your vehicle has been “pimped up”. Let the insurance company know if you do make any changes to your motor. Remember fitting an immobiliser or an alarm helps to reduce payments.
  • Try and not be duped into buying breakdown or windscreen cover especially if you think you don’t need them. Always take a look at how much these might cost separately first of all. Lots of car insurance companies sell extras at much higher rates.
  • It’s a good idea to buy a policy with a higher excess too. This will make your premium lower but do make sure this type of policy is within your budget. Ask for a quote so you get a picture of what the cost may be before signing on the dotted line.

Steering Wheel

Don’t wait for your renewal

You don’t have to wait for your car insurance renewal reminder to drop through the door. To save cash, switch early to a cheaper provider. With prices on the increase, cancelling your present policy and getting a refund for the rest of the year is a good option.

Remember you might have to pay a cancellation fee of around £50, check the policy. The savings you make by switching can far outweigh staying with the same insurer.

Jan has worked in the car finance industry for the past 20 years and I currently run Zoomo Car Credit. I specialise in car finance, helping customers who who have bad credit get accepted!