Drivers are required by law to have car insurance, and although prices fell 4% last year, they are still higher on average than last year. And unfortunately, these high costs are disproportionately borne by younger drivers, with 17-year-olds paying the most.
Website Which? According to Compare the Market, 17-year-olds who have just gotten their driving licence are paying an incredible £3,075 on average, up 53% on last year. These figures gradually decrease as new drivers get older, with 27-year-olds earning 35% less than younger drivers.
So what can drivers of all ages and experience levels do to cut costs?
What effective methods have been developed? We recommend switching providers. Contrary to the idea that loyalty to a company doesn’t translate into lower prices, instead drivers who renewed their car insurance in the first quarter of this year actually paid more for their premiums.
A survey of 2,000 drivers by Confused.com found that 75% said their renewal offers had increased by an average of £94. The comparison site also found that 45% of those who were quoted a higher renewal price could have saved £90 by shopping around for a better deal.
If you’re not interested in switching providers, or you think it’s still a little cheaper to stay with your current provider, there are other ways you can save money while still getting car insurance:
Pay annually – Paying once for the year instead of multiple monthly payments could save you hundreds of dollars.
Renew early – Renewing your insurance a few weeks in advance rather than a few days before often means you’ll get a cheaper rate.
Keep your mileage low – It may sound silly, since you don’t insure your car to avoid driving it, but limiting the miles on your odometer can help you avoid higher insurance premiums.
Customize your job title – Customizing your job title without lying can actually save you a few cents. So if your occupation is “hairdresser,” try “barber” or “hair stylist” to see if you can get insurance for a little less.
Haggle- If you really don’t want to switch, but the other tips haven’t worked, negotiating with your provider can help you get a lower price, but there’s no guarantee.
These are all great tips to help you cut the cost of car insurance. However, if you want to learn more about how to get cheap insurance in the first place, they also have a great page on how to buy the best value for money insurance.
And for young drivers looking to avoid exorbitant fees immediately after overtaking, a black box could be the solution. Although it often comes with restrictions, it can reduce fees and make drivers more aware of their behavior on the road.