MOTORING experts have revealed the six easy ways you can slash the cost of your car insurance – and loved ones can help you out.
As Brits across the country are feeling the pinch from the ongoing cost of living crisis, many will be looking for ways to make a saving and drivers will be wanting to shave some pounds from their insurance premiums.
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The experts at the International Drivers Association have drawn up a list of the ways significant savings can be made just by making a few changes to your policy.
Tweak your job title
It’s possible to save hundreds of pounds simply by making a tweak to your job title.
Insurance companies store historical information on claims they have paid for in the past and analyse this data to make predictions about claims they might face in the future.
So if you choose a job title which is deemed as high risk when you apply, the price you’ll pay will be higher.
For example, a recent study shows if your current job title is ‘chef’ you’ll pay amongst the highest premiums, with an average annual premium of £420.70.
However, by tweaking your title to ‘cook’, you could save almost £120, as the average premium for this role is just £302.51.
The experts say: “It’s definitely worth trying out a few different job titles before accepting an offer. Whilst you must always ensure you are telling the truth about your profession, selecting an alternative job title that still matches your role could save you hundreds of pounds on your annual quote.”
Tie the knot
Anyone who is in a relationship but hasn’t tied the knot yet could save themselves hundreds of pounds simply by saying “I do”.
This is because car insurance companies view married people as “lower-risk” than singletons.
Research show that married drivers make less expensive claims than those who are single.
As such, insurers may offer a more attractive insurance premium if you have got hitched.
Premiums can dramatically decrease by as much as £200 for couples in their thirties, who make the most savings overall.
Even if you’re in a traditionally ‘high risk’ insurance group, getting wed can give you an advantage.
Although this may seem unfair, studies show that single drivers are at twice the risk of having an accident behind the wheel compared to people who have tied the knot.
However, if you aren’t quite ready to get married but are in a domestic partnership, some insurers do offer specific discounts for couples living together.
Some insurers feel encouraged to do this under the assumption you’ll spend less time driving alone.
The experts say: “Whilst there are so many wonderful reasons to get married, making an extra saving on your car insurance is another added bonus.
“If you get married, remember to update your provider and send evidence of your marriage certificate to ensure your policy is updated and you can reap the benefits.”
Register on the electoral register
By simply registering to vote can help bring the cost of your insurance down, which is calculated on various factors, including your credit rating.
If you have a poor credit history, you may pay more for a monthly premium. That’s because, statistically, people with low credit ratings are more likely to make car insurance claims.
While there are a number of ways to improve your credit score, one of the easiest is to ensure your name is on the electoral register.
Credit reference agency Experian says, if you are registered to vote, companies see this as a sign of stability by lenders and can therefore help any applications that consider your credit score.
Typically, appearing on the electoral roll at your current address can add 50 points to your Experian credit score, which in turn could help you save on your car insurance premiums.
The experts say: “The cost of your car insurance is calculated on a number of different factors including your age, postcode, and your credit rating.
“People with lower credit ratings tend to have higher premiums, however by taking some simple steps to improve your credit rating, you could cut the cost you pay. Ensuring you pay your bills on time is also essential to avoid seeing high premiums.”
Add your parents
Adding responsible named drivers to your policy is another way to slash the price you pay. This is especially useful for younger drivers who can make dramatic savings by adding their parents to their car insurance.
Regardless of your age, adding a responsible driver with a clean driving record and a long run of no claims could reduce your level of risk in the eyes of the insurer.
A recent study revealed that young drivers can save up to £426 by adding their parents as named drivers.
However, it’s important to remember that the named drivers must only use the car “occasionally” or you run the risk of invalidating your policy due to “fronting”.
“Fronting” is where a parent or more experienced driver pretends that they are the main user of a car when a younger person is actually driving it on a regular basis.
People sometimes do this to try to reduce the cost of premiums. However, if an insurer discovers this, your policy could be declared invalid and you could be liable for any costs that arise as a result of an accident.
The experts say: “While adding a named driver to a policy who occasionally drives the vehicle is perfectly fine, you must be honest with your provider about who the main driver of the vehicle is.
“If you provide inaccurate information, you could risk ‘fronting’ which is illegal and could see your insurance invalidated.
“People found guilty of fronting, or any other type of insurance fraud, will also find it more difficult to buy insurance in the future and their premiums will be more expensive.”
Reassess your mileage
When applying for car insurance, drivers are always asked to provide the estimated number of miles they are set to drive throughout the year, which impacts the cost of your insurance.
If your car insurance is due for renewal, it’s definitely worth recalculating your mileage based on the amount of time you’re set to spend at home in the coming months, especially if you’re working from home under hybrid working.
The experts say: “Right now many providers are offering financial support to their customers, so if you want to recalculate your mileage, it could be worth giving them a call to waiver the amendment fee.
“If you have a record of your mileage from the last time you applied for cover, you could use this to calculate the difference used this year.
“If you don’t, you can always sum up how far you’ve travelled each day on average to get a rough estimation.”
Invest in new technology
If you drive an older car that doesn’t feature advanced safety features, you could pay more for your car insurance, due to the increased risk of making an expensive claim.
Many car insurance companies are encouraging drivers to use safer cars by offering substantial discounts to those who are already using safer vehicles or are willing to install safety devices.
Features such as adaptive cruise control, automatic emergency braking and blind spot warning systems, could all save you a substantial amount of money, or if you do have these already installed – make sure you tell your provider.
If you don’t have these installed in your vehicle, fitting a dashcam could also help you save money.
Insurance providers who offer discounts to drivers with dashcams usually shave between 10 per cent and 12.5 per cent off the price of policies, though it can be up to 20 per cent for young drivers who have the safety device installed.
Anti-theft devices, such as GPS trackers and mechanical immobilisers such as tire and steering locks can also help reduce the costs.
Mechanical immobilisers have been compulsory in new cars since October 1998, so if your car was made after this year, you’ve got one.
For cars older than this, you’ll need to check your owner’s handbook, which will state if your car has a factory-fitted immobiliser.
The experts say: “Whilst we know safety devices, such as black boxes can help young drivers, there are so many other features that can help you make a saving. If you’ve got a new car, make sure you check the list of features installed and tell your insurance provider.
“If you have an older vehicle, simply installing a GPS tracker or a car safety alarm system could see you save hundreds of pounds on your premiums.
“Not only this, but you’re increasing your safety on the roads, which of course, is the most important reason for doing so.”
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