Top 5 tips to save money on your car insurance

For many of us car cover is a huge expense despite the fact it’s a necessity. To keep costs down, mustard.co.uk share their top five tips that can help you get cheap insurance quotes without skimping on protection. 

1. Choose a car in a low insurance group

All cars made for the UK market belong to one of 50 car insurance groups. Groups are based on things like the value of the car, cost of parts and labour, safety and security. The lower the group number, the cheaper you can expect your premium to be.

Of course, cars in low insurance groups won’t be suitable for everyone as they tend to be smaller and less powerful. But understanding how the system works can at least give you an idea of what you can do to keep premiums down. 

For example, if you need a relatively powerful car because you regularly drive on motorways or tow a trailer or horsebox, look for cars with enhanced safety or security features in place. This can sometimes mean they’re included in a lower group compared to similar cars in their class.

2. Build up your no claims bonus

Every year you drive without making a claim earns you a no claims bonus (NCB) which is then applied as a discount to your premium. The more years of no claims you have, the greater the discount.

The exact amount you’ll shave off depends on the insurer as they all set their own discount rates. As a general guide, one year of no claims bonus will reduce your premium by around 30%. Anything more than nine years should give you around 70% off. 

Bear in mind that building up your NCB isn’t about never making a claim. It’s about making you think carefully before claiming for every scratch or dent. 

3. Pay for car insurance annually

If you can, try to pay for your policy in one go. Paying for your car insurance in monthly instalments might be convenient but it also means interest will be added so your policy will cost you more over the course of the year. 

If you don’t have enough cash in the bank, consider an interest free credit card to cover the cost. Doing this means you can still pay off the amount in instalments but at least you won’t be charged interest. But, you must keep up with your credit card repayments. Otherwise you could face fines and it could make it harder to find credit in the future.

4. Increase your excess

Increasing your voluntary excess can lower your overall premium. All in all, this is one of the quickest ways to lower car insurance costs. Nevertheless, it does come with a warning and the amount you choose should still be affordable. This is because you’ll have to pay your excess if you want a claim to go ahead. 

5. Consider all types of car insurance policy

One of the big assumptions many people make is that third party car insurance is the cheapest type of policy available. This might have been true in the past but it’s not so much the case anymore. 

Over the years, data has revealed that third party policyholders actually make bigger claims, which is now reflected in premiums. So while third party cover might be the cheapest option for some people, it’s not guaranteed to be the cheapest for everyone.

Instead, be open minded and compare all types of policy. Many comprehensive policies represent great value for money and often include a host of popular features including legal expenses and breakdown cover. In contrast, you often have to add these on to third party policies which will increase premiums.

If you’re a young driver, it’s also worth considering telematics car insurance (also known as black box insurance). These policies calculate premiums based on the way you drive rather than industry statistics. It can mean you see premiums fall faster compared to young drivers without a telematics policy. 

Compare car insurance for great value deals and peace of mind

The quickest and simplest way to save money on your car insurance is to shop around for policies. At comparison site mustard.co.uk, you can compare dozens of leading UK insurers all in one place, so not only can you save money, you save time too. You can start your quote online or speak to an expert on 0330 022 8812.