How to save money on car insurance: expert advice

Car insurance is an unavoidable expense if you are going to hit the road. It’s just one of the many things we have to take into account in the ever-increasing cost of living.

The cost of a policy can vary as a result of multiple factors, from the car you drive to the number of years it’s been on the road. For some people, especially young drivers, the cost can be enormous.

Auto specialists Euro Car Parts have shared some tips that could help drivers save hundreds on their annual insurance bills.

Get a black box

If you are new to driving, car insurance policies can be expensive due to your lack of driving experience. One way to show you’re safe (and lower your premiums) is to sign up for a black box insurance policy.

A black box is a small computer that is installed in your car to monitor how you drive, relaying the information to your insurance provider. These devices rely on satellite technology to create a record of your driving habits. This includes how aggressively you accelerate and brake, whether you accelerate, and what time of day you’re active.

Once you’ve purchased a black box insurance policy, your insurer will arrange for a third party to install it in a location that is out of sight, such as behind your dashboard.

By opting for a black box, you’ll likely have lower premiums in your first year and your insurance costs will drop even more after a year behind the wheel. This is a tactic that rewards consistent driving, so it should also help you learn some good driving habits and save some money in the long run.

make annual payments

If you can afford it, a lump sum annual payment is one of the best ways to lower car insurance costs because it means you don’t have to pay any interest on the policy. Drivers can see savings of up to £200 by paying annually instead of monthly.

While the monthly costs may be easier to manage, it can be more expensive to pay this way. By selecting a monthly payment plan, you are effectively signing up for a 12-month loan from your insurance company. This often means paying fees along with the interest rate to cover the premium.

Your insurance company may even run a credit check before agreeing to the monthly plan alternative. If you have a low credit score, you may have to pay a higher interest rate or the lender may even withdraw their offer of a monthly payment option.

Park in a safe place overnight

When calculating your car insurance policy, an insurer will always take into account where you park your car. If you’re wondering how to make car insurance cheaper, it’s always worth remembering that this is a factor you can control.

Car insurers are interested in learning about your parking habits, so they can take into account how safe your car is. Locking your car in a garage overnight may seem like the safest place for your pride and joy, but an insurer may not see it that way.

They will consider the fact that it might get a few scratches going in and out. With that in mind, a carport is seen as the choice of legislators. A private driveway is also a popular spot with insurance companies, and could earn your policy nearly half the price it would if you parked your car on the street, out of sight of your property.

get a dashcam

An accident on the road can happen at any time, and in the heat of the moment, it can be difficult to determine who was responsible for the incident. That’s where a dashcam comes in handy for capturing footage of your time on the road, recording both your driving and other motorists around you.

Installing a dashcam and collecting footage of your trips can earn you a discount on your auto insurance. Companies look favorably on drivers who have a device installed because it shows that they are willing to document their driving.

Insurance companies will most likely consider lowering your rate if you have a dashcam that operates GPS tracking and has a location setting, because the more information the insurer and authorities have about an accident, the better.

If you are involved in an accident or incident, and your dashcam footage proves you were not at fault, it can prevent you from filing a claim on your insurance policy, which prevents your premiums from increasing. Authorities request that if you want to report dangerous driving by other motorists in your area, you must submit images to the National Dash Cam Safety Portal.

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