The one simple rule to saving on car insurance remains – don’t auto renew your policy without getting additional quotes.
That can be a hassle and an additional burden that a busy life doesn’t easily allow for but, if you want to make savings, it’s the way to go.
Even if you don’t have the will to spend hours comparing every possible quote and opt to use just one comparison site, the chances are you’ll make a saving.
The more you shop around, the larger saving you’ll likely achieve. One woman recently reported getting an annual policy for the equivalent of 96p once she’d benefited from cash back deals. She got a £70 cashback incentive from a broker and used a cashback online shopping site to generate a further £50 incentive.
Even if you can’t commit to shopping around annually, a one-off review is likely to be worth your while, especially if you’ve been blindly renewing your policy for years.
1. Shop around
It’s the one piece of advice almost certain to save you money on a renewal quote.
If you’re keen to stick with your current insurer, it’s worth going back to them with the cheapest price you’ve found and they may match or better it to keep you.
2. Remove young or risky named drivers from your policy
If you’ve got a young or high-risk driver (perhaps someone with a number of points on their licence) named on your policy and they no longer need to be on it, remove them.
That person is likely to push the quote up.
By contrast, having a second experienced driver named on your policy may make the policy cheaper.
But don’t be tempted to dishonestly list someone as the main driver on a policy. This was once commonplace, especially among young drivers trying to get cheaper policies by listing a parent as a main driver, but it could be deemed fraudulent and invalidate a policy.
3. Make a legitimate change to your job title
If your job could be legitimately described by a different title, see if the change saves you money.
A simple change from ‘creative director’ to ‘marketing manager,’ for example, could save you hundreds of pounds.
Remember, if you’ve changed jobs or lost your job it’s vital to inform your insurer to keep the policy valid. It’s wise to contact your insurer if you’ve been furloughed to ensure your policy is unaffected.
4. Consider a telematics / ‘black box’ policy
Many young drivers can make huge savings via a telematics, or ‘black box’, insurance policy and savings may be there for older drivers too.
The policy, linked to equipment in your car that logs data on your driving style (such as speed and intensity of braking), allows insurers to judge more closely how much risk they believe you pose.
Analysis of quotes between December 2019 and March 2020 indicated telematics policies offer a cheaper option for 70% of 17-20 year olds, 15% of 30-39 year olds and 15% of 50-64 year olds.
5. Don’t wait until the last minute to buy your policy
Some evidence suggests buying a car insurance policy a few weeks ahead of the policy start date can lead to big savings.
Money Saving Expert indicates 20-26 days before the policy start date is the optimal time to buy.
The early bird catches the worm!