Save money on car insurance: How you can ‘save hundreds’ on annual bill
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According to research from MoneySupermarket, the average cost of car insurance in the UK for comprehensive cover was £412 a year as of the end of 2021. Though car insurance prices can vary for a number of reasons, car specialist Euro Car Parts said there are four tips “that could help drivers save hundreds on their annual insurance bills”.
How to save money on your annual car insurance bill
Get a black box
Generally, this tip is best suited to those who are new to driving but is also good for those who are sharing their car with a first-time driver.
A Euro Car Parts spokesperson said: “If you’re new to driving, car insurance policies can be pricy because of your lack of motoring experience.
“One way of demonstrating you’re safe, and lowering your premiums, is to sign up for a black box insurance policy.”
A black box is a small computer that is fitted to your car and monitors how you drive.
This information is then relaid back to your insurance provider.
Using satellite technology, the black box is able to build up a record of your driving habits.
This includes how aggressively you accelerate and brake, whether you speed and what time of day you’re active.
The spokesperson added: “By opting for a black box, you’re likely to have lower premiums in your first year, and your insurance costs may be cut further after a year behind the wheel.
“This is a tactic that rewards consistent driving, so it should also help you to learn some good motoring habits as well as save some money in the long run.”
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Make annual payments
Though there is the option to pay your car insurance monthly, paying a one-off annual lump sum is “one of the best ways to lower car insurance costs”, according to the experts.
Euro Car Parts’ spokesperson explained: “It means you don’t have to pay any interest on the policy.
“Drivers can see savings of up to £200 paying annually as opposed to monthly.”
The expert added: “By selecting a pay monthly plan, you’re effectively signing up for a 12-month loan from your insurance company.
“This often means paying for fees alongside the interest rate to cover the premium.
“Your insurance company may even carry out a credit check before they agree to the monthly plan alternative. If you’ve got a low credit score, then you may have to pay a higher rate of interest, or the lender may even withdraw their offer of a pay monthly option.”
Be wary of where you park overnight
When signing up for a car insurance policy, your provider will likely ask where the vehicle is typically parked overnight.
The expert said: “Car insurers are keen to know your parking habits, so they can factor in how safe your car is.
“Locking your car up in a garage overnight might seem the safest place for your pride and joy, but an insurer might not quite see it that way.
“They’ll consider the fact that it could potentially pick up some scrapes as you drive in and out.
“With that in mind, a carport is seen as the policy maker’s pick.
“A private driveway is also a popular spot with insurance companies, and could see your policy come in at almost half the price it would be if you parked your car on the street, out of sight of your property.”
Invest in a dashcam
Dashcams work by capturing footage of what is occurring on the road around you while you drive, as well as the time and date at which your journey took place.
An accident on the road can happen suddenly, and in the heat of the moment, it can be tricky to gauge who was responsible for the incident. That’s where the dashcam comes in handy.
Euro Car Parts’ spokesperson said: “Installing a dashcam and collecting footage from your journeys may earn you a discount on your car insurance.
“Companies look favourably on drivers who have a device fitted because it shows that they’re willing to document their driving.
“Insurance companies are most likely consider reducing your rate if you’ve got a dashcam that operates GPS tracking and has a location setting in place, because the more information an insurer and the authorities have about an accident the better.”
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