Car insurance is a necessity, but many people struggle to pay for it. In fact, the average annual premium in the United Kingdom is 1,250 pounds. The good news is that there are several things that you can do to save money on car insurance. Below are some tips that will help you reduce the amount of money that you spend on car insurance:
One of the best things that you can do to save money on car insurance is to compare quotes. Even if you are content with your current insurance provider, you should still consider shopping around and comparing prices. You may be able to save hundreds of pounds per year by doing that. Comparison shopping does not have to be a time-consuming task. There are several websites that allow you to compare multiple quotes. Ideally, you should compare quotes from at least three different companies.
Install Security Devices
Your risk profile is one of the factors that determines the amount of money that you will end up spending on car insurance. The higher your risk profile, the more you will spend on car insurance. You can lower your risk profile by installing security devices on your car.
Improve Your Credit Score
Many people underestimate the importance of having a good credit score. More and more insurance providers are choosing to check credit. If your credit score is low, then you may be required to spend more money on car insurance. That is why you may need to work on your credit. Paying down some of your debts is one of the things that you can do to improve your credit score. You may also want to make sure that all of your bills are paid on time.
Most people know that their car insurance rates will go up if they get into an accident. However, some people do not know that even minor traffic violations can cause one’s insurance rates to increase. You want to make sure that you drive cautiously at all times.
Drive Fewer Miles
You will be able to save money if you drive less. If you reduce your annual mileage by 5,000, then you may be able to save 50 pounds per year. You could also save over 100 pounds if you reduce your mileage by 10,000. However, you want to make sure that you are honest with your insurance company about the number of miles that you drive. An inaccuracy can jeopardize your claim.
Increase Your Voluntary Excess
You will be able to save more money on car insurance if you agree to pay more out-of-pocket for accident repairs. However, you do not want to raise your voluntary excess too high. This is especially important if you have an older vehicle. In many cases, the cost of repairing an older vehicle is more than the cost of replacing it.
The cost of car insurance in the United Kingdom is rising, but you can save money by comparing quotes, increasing your voluntary excess, driving cautiously and improving your credit score. You may also want to consider driving less and securing your vehicle.
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