Settling personal injury claims costs on the rise, insurance fraud and uninsured driving is what makes cost of motor insurance rise.
The ABI and our members are working to reduce legal costs, which add 10% to the cost of motor insurance premiums, and cracking down on fraudulent claims and uninsured driving.
Following these tips can help you cut the cost of your motor insurance.
1. Shop around. Motor insurance remains competitive, with premium rates varying between companies. So it is often worthwhile to get quotes from different insurers, using an insurance broker, or a comparison website. But make sure that you don’t just buy on price, but on the policy that meets your needs, and if buying online check the details of the cover.
2. Make your vehicle secure. Premium discounts are often available if you have an approved alarm or immobiliser fitted – an insurer can advise on suitable security devices. And having your car garaged overnight may also reduce the cost as well.
3. Pay a higher voluntary excess. Increasing you excess (the first part of any claim that you pay yourself) can mean you pay a lower premium.
4. Limit the vehicle’s use. Using your vehicle in connection with any business pushes up the cost so, if you can, limit use to social, domestic and pleasure purposes.
5. If you are a young driver, consider taking the Pass Plus course, as some insurers may offer lower premiums if you complete the course.
6. Pay the premium in one go. If you can afford to, pay the premium upfront in one go as you may be charged more if you pay by instalments.
7. Choose a lower powered car. If you change your vehicle, think about the insurance. Insurers take into account a vehicle’s engine size, so a lower engine size will mean a lower premium.
