Don’t overpay for your motor insurance
Car insurance premiums have risen by £76 in the past year to £689 on average, according to comparethemarket.com.
For an average driver the cheapest premium is about £570, and drivers can typically save £119 by shopping around at renewal.
Younger drivers pay the most, with the typical 18-year-old paying £1,407 a year, according to confused.com.
Its chief executive Louise O’shea says pandemic disruption and Brexit are pushing up claims costs, as replacement parts are harder to source and repairs take longer to complete.
The Financial Conduct Authority has now banned the “loyalty penalty”, where policyholders who stay with the same insurer for years pay more. Despite this, shopping around at renewal can still save you cash.
There is plenty more you can do to cut the cost of your motor policy, aside from shopping around.
Raise your excess: Just ensure you can afford to pay it if you need to make a claim.
Check your mileage: If you drive fewer miles than anticipated, tell your insurer. But do not underestimate your mileage, or fail to mention motor claims or convictions, as this could invalidate your policy.
Park off-road: If you park on a driveway or in a garage you should get a discount, as that is safer than parking on the road.
Fit an alarm: Or use an immobiliser or tracker. This may lower your premium.
Try telematics: Younger drivers especially could save with a “black box” policy, which measures your performance and offers premiums to safer drivers.
Pay up front: If you pay in monthly instalments most insurers will treat this as a loan, and slap on interest charges of up to 20% a year. If you have the cash, pay your premium in one go.