How to reduce your insurance premium in an economy where we are seeing rising insurance quotes and renewals.
Tip #1 - Add an older named driver to your policy
Instead of parents adding their child to their own insurance policy, new drivers can consider adding an older named driver, such as a parent, to their first car insurance policy. This can help reduce the cost of insurance as the insurer sees an older and more experienced driver sharing the vehicle. However, it is essential that the older driver actually uses or intends to use the car to avoid invalidating the insurance in the future.
Tip #2 - Consider Black Box Car Insurance
Black Box Car Insurance allows new drivers to prove to their insurer that they deserve cheaper car insurance rates. This type of insurance involves installing a black box in the car to monitor driver behavior. Safe and responsible driving can lead to lower insurance premiums during renewal. While it may not initially lower the cost of your first car insurance policy, it can potentially offer discounts in the future.
Black boxes serve the purpose of monitoring your mileage, as well as your braking, acceleration, speed, and cornering, to ensure that you stay within your mileage limit. It should be noted that certain black boxes have curfews, requiring you to return by a specific time. Furthermore, some black box policies offer cash back incentives based on your safe driving habits, allowing you to receive more rewards for driving responsibly.
Tip #3 - Choose a more affordable car
The make and model of the car you drive can impact the cost of insurance, especially for young and new drivers. While it may be tempting to purchase a high-performance car, it will not only be more expensive to purchase but also result in higher insurance premiums. Opting for a more modest car can lead to cheaper car insurance rates. Insurers categorize cars into groups ranging from 1 to 50, with group 1 being the cheapest to insure and group 50 being the most expensive.
Example of group 1 insurance cars below (check specific models as only certain engines and trim levels will be categorised as group 1)
Brand | Model | Year |
Citroen | C1 | 2005 - 2014 |
Ford | KA plus | |
Nissan | Micra Hatchback | 2014 + |
Hyundai | i10 | 2014+ |
SEat | Mii | 2012 - 2019 |
Tip #4 - Ensure your car is safe and secure
Postcodes and areas listed as high risk will have a big affect on your insurance premium. Insurance providers prefer vehicles that are secure and less likely to be stolen. This includes both the security features inside the car and where it is stored when not in use. Installing an alarm, immobilizer, or other security devices in your car may help lower insurance costs for new drivers. Additionally, parking the car in a garage or on a driveway overnight can result in savings on your insurance policy. However, if the car can only be parked on the street, you may not experience any savings.
Tip #5 - Increase your excess
When obtaining a car insurance quote, you will have the option to choose a deductible amount. This is the amount you agree to pay out of pocket in the event of a claim. Selecting a higher deductible, such as £200 instead of £50, will result in a higher overall premium. Just ensure that you can afford to pay the higher deductible if necessary.
Closing Message
I hope this helps you with your insurance hunt. Don’t forget to keep an eye on our blogs as there will be many new blogs aimed to help new drivers.