Recent research by Comparethemarket.com found that drivers could be missing out on an average annual saving of £137 on their car insurance premiums – but how is this happening? Largely, it seems that this missed savings opportunity is down to apathy, as around 60% of drivers renew their car insurance each year with the same provider without taking the time to shop around for the latest deals.
The research suggested that half of all drivers could save 23% on their premiums, with drivers aged 25 potentially achieving savings of up to 45%. Despite this, 60% of people renew their car insurance without shopping around for a better quote. This can be a costly mistake, because the cost of car insurance has been on a downward trajectory over the last 12 months – the steepest annual price fall in 20 years – increasing your chances of securing a bargain car insurance deal.
Car insurance premiums plummeted in 2013
According to the most recent AA British Insurance Premium Index, which details quarterly price changes in car insurance premiums, the average cost of annual comprehensive cover fell by £80 from September 2012 to September 2013. This drop in premiums could be due in part to recent attempts by the government to reduce the number of fraudulent whiplash claims made – a major issue for the car insurance industry which disproportionately raises honest drivers’ insurance premiums.
Get cheaper car insurance
To maximise your chances of getting the cheapest possible car insurance deal, try some of the following tips:
Prove that you’re a responsible driver – if you’re in a group of drivers who are considered a statistical risk by insurers - for example, young men - you may be able to get cheaper car insurance if you install a ‘black box’ in your car that monitors your driving. These devices are offered by several insurance as a way for sensible drivers to prove their safety behind the wheel and therefore pay less for their insurance.
Install extra security – adding an alarm or immobiliser to your car could reduce your premiums, so it’s worth checking with your insurance provider to see if this is the case.
Add a named driver - Add someone to the insurance, particularly if they are over 25 with a clean record, could help to bring down the cost of your premiums. However, be aware that if it’s your car, you can’t claim someone else is the main driver for the purposes of getting cheaper insurance. Failing to do this is known as ‘fronting’ and is illegal.
Use your garage – Storing your car securely in the garage when it’s not in use could help you get a lower car insurance quote, so make sure that you inform your insurance provider if you plan to do so.
Be vigilant when it’s time to renew – Car insurance providers know that the majority of people won’t look for a new car insurance deal when their current one ends. To get a competitive quote, be prepared to look elsewhere before your current car insurance expires.
To find the best deal for you, compare car insurance quotes using the table below >>
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