Car insurance is one of the highest costs of driving a car, and it's not something you can avoid – a minimum level of insurance is required by law. That doesn't mean you should blindly pay your insurer's quotes, though, as there are several simple steps you can take to lower the cost of your premiums.
1) Shop and Buy Online: Figures show that many people simply renew their current policy without shopping around. The internet makes it easy to compare the prices of different insurers, so why not take advantage of it? Plus, you'll usually get a discount of 10% or more just for purchasing your policy online.
2) Font Type: Do you really need a full font with all the extras? Opting for a third-party fire and theft insurance policy can significantly lower your premiums and is definitely worth considering if your car is not an expensive model.
3) No Claims Discount: Almost all policies have a discount that increases every year you don't make a claim. The higher the discount available, the more you could save. Also look at insurers offering a 'claims-free bonus for life' feature, where your current level of discount can be fixed forever, even if you have to make a claim somewhere down the line.
4) Deductible: The deductible on a policy is the amount of a claim you must pay before the insurer pays the rest. Choosing to have a higher than standard deductible will generally result in lower premiums.
5) Security: Equipping your vehicle with an alarm, immobilizer, or other security features may result in premium reductions. Parking your car off-road, for example in a driveway or in a garage, will also mean a cheaper policy.
6) Pay annually: Many insurers charge you interest for the privilege of paying in monthly installments. Pay annually if you can afford it to avoid this, or look for one of the companies that don't charge extra for the monthly payment.
7) Mileage: The more miles you drive each year, the more your insurance will cost. Even if you can't reduce your mileage, make sure you don't overestimate the number of miles driven and give your insurer an accurate figure.
8) Drivers: The more drivers you have on your policy, the more it will cost you. Minimize the number of people insured to drive your car and try to get the policy in the name of a driver with the lowest risk profile. For example, if a car is driven by both a man and a woman, insuring it in the woman's name will often result in a cheaper quote.
