The key factors that affect insurance costs are both industry and person-specific and include energy costs, the cost of repairs, and the cost of raw materials.
According to research, the average car insurance premium between July and September 2023 was £561 This figure has risen over the past year, with it now being the highest on record (according to the ABI).
If your insurance is up for renewal, there are a number of things you can do to try and keep the cost down.
1. Don’t auto-renew
Many of us have busy lives, so auto-renewal can often seem the most convenient way to deal with car insurance. However, in reality, this can result in paying over the odds.
2. Time it right
The cheapest time to buy car insurance is actually between 20 and 27 days before the current policy expires.
3. Shop around
Whilst loyalty is great, it can actually cost you money. So, when you get to the window mentioned above, use online websites to compare quotes. Once you have done this, you could even approach your current insurer and ask them to match the lowest quote.
4. Pay up-front for the year
This can save you a surprising amount of money compared to paying by monthly direct debit because there is no interest charged. It may even be worth paying up-front using a zero percent or low-interest credit card (and paying that off monthly instead).
5. Choose a higher excess
Your excess is only payable when you make a claim, so consider opting for a higher excess (as long as you would be able to afford it). This will often reduce your premium.
When renting a car, taking out car hire excess insurance can potentially save money as it means you don’t have to pay the full excess amount. Money Maxim compares different car hire excess insurance policies and offers expert advice.
6. Keep your car safe
Upgrading your car alarm system, or keeping it in a locked garage overnight could both reduce your insurance premium.
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