Your Car Insurance Premiums

The cost of car insurance in the UK is increasing, and the rate of increase is currently very fast. Let’s look at the numbers and suggest some ways of checking that you’re not paying too much for your car insurance.

In recent times, car insurance premiums in the UK have surged significantly. According to an Association of British Insurers (ABI) article in September 2023, Motor insurers paid out £2.5 billion in motor claims in the second quarter of 2023, up 29% on the £2 billion paid in the same quarter during 2022. This was the highest quarterly figure since the ABI started collecting data in 2013 and, for your author here, the largest car increase in living memory; the bad news is that anecdotal evidence suggests that things have progressed further with many reporting huge increases in their October 2023 renewal invitations with many being asked to being paid 40-50% more this year than last.

This issue has been a hot topic in many of our recent news videos, and many of you have expressed concerns about the skyrocketing costs of car insurance. Let’s dive deeper into some ideas that could help you enqure that you’re not paying too much and to possibly help you save on your car insurance.

Before we delve into the money-saving strategies, there's a fundamental rule to remember: honesty is paramount when it comes to car insurance. Providing accurate information is crucial because any dishonesty may lead to the invalidation of your policy and financial liability if you make a claim. So, always be forthright with your responses.

Additionally, be cautious when altering your information multiple times when obtaining insurance quotes. Frequent alterations are logged and could result in higher quotes or even the refusal of a quote by some companies.

Now, let's explore some effective ways to reduce your car insurance premiums:

Shop Around Annually:

Always make it a habit to shop around for car insurance every year. Don't limit your options to your current insurer. Utilise comparison websites like MoneySuperMarket, Confused, and Quotezone, which offer quotes from various insurance providers. Admiral offers multi-car and multi-policy discounts. By combining your household's cars on a single policy, you can save money. Moreover, they may even offer discounts on other policies like home insurance when bundled together which can result in significant savings for some.

Pay Annually:

Whenever possible, opt to pay your insurance premium annually. Monthly installments often come with interest, and the cumulative cost can be higher than paying upfront.

Adjust Your Excess:

The excess amount you choose can impact your premium. Consider increasing the voluntary excess, which can lower your premium, but remember that you'll be responsible for more of the costs in the event of a claim.

Add Extra Drivers:

Surprisingly, adding extra drivers to your policy can sometimes reduce your premium. For young or inexperienced drivers, adding a parent as a named driver can lead to savings. For seniors, involving a younger driver may help lower the premium.

Accurate Annual Mileage:

Be precise when providing your annual mileage estimate. Underestimating or overestimating can affect your premium. Review your recent MOT certificates for accurate mileage data.

Telematics or Black Box Policies:

Consider telematics or black box policies, especially if you're a young driver. These devices monitor your driving habits, and safe driving can lead to discounts.

Occupation Description:

Ensure that your occupation is accurately described on your policy. Different ways of describing the same occupation can affect premiums. While honesty is vital, some descriptions may result in higher premiums.

Vehicle Insurance Group:

Investigate the insurance group of your car. Electric cars or high-performance vehicles may have higher insurance groups, which can lead to increased premiums. Opting for a vehicle with a lower insurance group can help reduce costs.

Avoid Scams

You may find people advertising ridiculously low insurance premiums, often they will approach you directly via social media. Always speak to an FCA-authorised entity for insurance advice; remember that if something seems too good to be true, it often is.

In Summary

It's no secret that car insurance premiums are on the rise in the UK and it’s a reality that is unlikely to change. We all need to pay higher premiums but, hopefully, by following these tips you can help ensure that you pay only what is necessary.

Don't let high premiums catch you off guard – be proactive and find the best deal for your car insurance.

Check out this useful car insurance video