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How To Reduce Your Car Insurance Costs

Mar 29, 2011

We are all looking at ways that we can reduce our spending these days.  We don’t have the same money to spare that we once did and because of this it can help to find ways to cut back.  We can do this in a number of ways.  Cutting down on luxury items is one way to put more money back in our pockets and not spending too much on weekly groceries is another.  But did you know that you can also save money on your car insurance as well?

Thankfully there are a number of ways that you can reduce the amount that you spend on car insurance these days and the following tips should help you to get a reduced premium:

  • The car you drive can affect how much you pay for your car insurance.  This may sound strange to some people but it will cost more in insurance for you to drive a car with a bigger engine or if you were to choose a flashy car that might be more likely to be targeted by thieves.  If you want to reduce your car insurance premiums then you could always consider changing your car for a more economic model.  Before you buy a new car it would be a good idea to check with your insurance company to see how much it will cost to insure.  That way you will know if this is affordable before you actually commit to the purchase.
  • Another way to save money on your car insurance is to pay for it up front in one lump sum.  A lot of people prefer to spread their annual car insurance costs over a year and pay a monthly sum instead of the full amount.  While this can help because you don’t have to find the full amount up front, it can mean that you end up paying more.  Insurance companies will charge an administrative fee if you want to spread the cost and it is usually more expensive to choose to pay by direct debit than to pay it all in one go.  Another reason to pay upfront is because at least then you can forget about your car insurance payments for a full year.  You don’t have to worry that you may miss a payment.
  • Insiders in the insurance market will tell you that it is not a good idea to make minor claims because these can affect the cost of your insurance.  You may find it is preferable to take care of any claims that are going to cost less than £1,000.  This means you will not end up paying out a huge amount for your car insurance.
  • If you make modifications to your car it could cause the price of your insurance premiums to rise so bear this in mind before making any changes to the car.  Modifications can even be the fitting of alloy wheels and you must remember that your insurance company must be told about any modifications or you could find that claims will be invalidated.