In the ongoing cost of living crisis, drivers across the UK are searching for effective ways to tighten their belts and save money wherever possible. With car insurance being a significant and unavoidable expense for most drivers, finding strategies to reduce the costs has never been more critical.
Experts from Motor Match have shared tips on how motorists can leverage simple yet effective methods to secure cheaper car insurance premiums
Adding a Named Driver with Experience:
"One effective strategy to reduce your car insurance premiums is to add a more experienced driver to your policy.
"This works because insurers assess risk based on the combined driving history of all named drivers. By including a driver with a long, clean driving record, you're essentially demonstrating to the insurance company that the vehicle is less likely to be involved in an accident, thereby lowering your risk profile and, in turn, your premium. It's crucial, however, to ensure that the named driver will genuinely use the car, as misrepresenting this can lead to severe penalties."
Parking Location:
"Where you park your car can significantly impact your insurance premium. Parking on a driveway is often perceived by insurers as safer than street parking, which is more susceptible to theft and accidental damage. Informing your insurer that the vehicle will be parked in a relatively safe location can lead to more favourable rates. It’s a simple adjustment that can have a meaningful impact on your costs.
"However, being as precise as possible is crucial because inaccuracies could lead to significant consequences. If you provide false information or fail to accurately answer your insurer's questions—a practice known as non-disclosure—you may face several repercussions:
Your policy may be cancelled or voided.
Your claims could be denied.
Claims filed against you might not be paid.
You might incur additional fees.
You may be required to inform future insurers about this instance of non-disclosure.
Other leading insurance companies could refuse to provide you coverage.
"Non-disclosure, which includes misrepresenting information or omitting details, could result in your claims not being paid and your policy being terminated."
Timing of Insurance Start Date:
"Insurance companies tend to view last-minute policy applications as higher risk, which can lead to increased premiums.
"To avoid this, we recommend planning your insurance start date in advance—ideally, setting it to begin 20 days from when you secure the quote. This not only shows insurers that you're a low-risk client who plans ahead but also gives you the leverage to secure a more competitive rate."
Paying Annually vs. Monthly:
"Opting to pay your car insurance premium in full for the year, rather than in monthly instalments, is a financially savvy move.
"While it requires a larger initial outlay, it eliminates the interest or finance charges that typically accompany monthly payments, ultimately reducing the overall cost. It's an effective way to achieve significant savings on your policy over the year."
