The typical British driver spends £ 725 a year on car insurance, but there are a number of ways to cut costs – according to a new study.
Moneyshake researched 140 auto insurance quotes on 10 of the most popular UK cars to see how your insurance price can change if just one factor is changed at a time.
A common misunderstanding when choosing car insurance is that drivers with lower mileage benefit from significantly lower premiums. This is because they are less on the move and therefore less likely to have an accident.
However, research by Moneyshake shows that reducing your mileage to a measly 5,000 miles a year only cuts your premium by £ 17.
Moneyshake’s Auto Insurance Secrets:
- By improving vehicle safety, you INCREASE your insurance price – adding a tracking device and securing wheel nuts increases the insurance price – possibly due to being classified as “changes”.
- REDUCING your voluntary deductible will save you 25% – A higher voluntary deductible is designed to lower your insurance price, however Moneyshake has found that reducing your voluntary deductible to £ 250 can save you 25%. Moneyshake found that increasing the voluntary deductible from £ 500 to £ 1,000 actually made the premiums more expensive.
- Having MORE coverage can save you a whopping £ 448 – drivers think lower tier is cheaper because you get less coverage. However, Moneyshake reveals that offers with pure liability, fire and theft insurance are 60% more expensive than fully comprehensive insurance.
- Additional Driving Skills INCREASE the Price of Your Insurance Policy – Although some insurance providers offer a PassPlus discount if you speak to them directly, research by Moneyshake has found that PassPlus qualified drivers actually spend more on their insurance.
- Adding your child can be as much as £ 5,000. Listing your spouse on your insurance can actually save you 25%, but adding your child to your policy can increase your insurance by a staggering 524%. Many quotes with a young driver added actually went over £ 5,000.
- Cheapest Cars to Insure – Nissan Micra, Volkswagen Up! and the Kia Rio are all £ 91 cheaper to insure each year.
- Paying annually instead of monthly can save you £ 109 per year – If you pay monthly you will generally spend 15% more per year.
- NCB can save you £ 356 a year – Moneyshake found that the average annual driver policy is £ 725 with 25 year bonuses with no damages.
- Moneyshake also heard from Chill Insurance for top tips to lower your premium:
- Drive safely and build your no-claims bonus.
- Correctly assess the value of your car.
- Use an online broker who will research the market for you to find the best deal.
- Assess your mileage correctly. You can pay more if you overestimate.
- For young drivers, you will take the driving test and receive a full driver’s license. You will often find that your premium goes down as you move from a Provisional License to a Full License.