In the United Kingdom, car insurance premiums have risen on average by £68 in just the last year. The current average cost of car insurance premiums in the U.K. is £688, compared to £620 a year ago.
With the cost of living generally going up in many countries around the world, from the cost of groceries to the price of electricity, it isn’t only the U.K. that’s seeing a hike in auto insurance costs.
In the United States, the average national cost of car insurance is expected to jump by 5% to $1,707 per year, up from the figure of $1,663 for 2021.
And in some states, the cost is much higher. For instance, in Michigan, which is currently the most expensive state for car insurance, the average cost of an annual auto insurance premium is $2,858.
However, it’s not all doom and gloom. If you’re savvy, there are several ways in which you can find cheap deals and reduce the cost of your auto insurance. Here’s a look at how to go about it.
Search Online for Cheap Car Insurance
The best way of finding cheaper deals on your auto insurance is to compare different insurers.
For instance, when you use a comparison platform like Cheap Insurance, you can compare hundreds of the best insurance companies to find cheap car insurance. You can also tailor quotes to suit your needs.
So, by searching online and comparing different insurers, you could make substantial savings on your car insurance premium.
Be Selective About Your Add-ons
You can get all kinds of add-ons for your car insurance policy, but do you really need all of them? You could be paying out-of-pocket for things like breakdown cover, courtesy cars, and personal accident cover.
Even if you do want some of those add-ons, you could still potentially get a cheaper deal by getting some add-ons separately through another provider.
Consider which add-ons you really need and compare different providers to help you save money.
Consider How Often You Use Your Car
You should ensure that your auto insurance policy reflects the amount of use you get out of your car. For example, if you only use your car to drive locally, rather than long commutes, an insurance provider could deem you to be a safer driver and offer you a lower rate.
Make sure you explore your options regarding car use when you compare insurance companies and make inquiries.
Increase Your Voluntary Excess
One option you have available for lowering the cost of your auto insurance is to increase your voluntary excess. Your car insurance excess is what you have to pay when you make a claim.
While you can’t alter your compulsory excess, you can change your voluntary excess. That can help you to lower your costs but bear in mind that a higher voluntary excess could lower your pay-out should you need to make a claim in the future.
Take an Advanced Driving Course
Some auto insurance companies offer better deals to drivers who complete specific advanced driving courses. That’s because the more driving experience you have and the better a driver you are, the less risk you have of being involved in a road accident.
If you successfully complete a recognized course that teaches you to drive better at night, in adverse weather conditions, or on motorways, for instance, your insurance company could provide you with a lower car insurance premium.