Cut car-insurance costs
Premiums have rocketed in recent years. Here’s how to reduce yours
Car-insurance premiums have risen across the board in recent years. The rising cost of everything from spare parts to labour means payouts have gone up. But older drivers are seeing the biggest rise in their car insurance bills. Compare the Market has found that a comprehensive policy for a driver over 80 has jumped by 47.1% over the past year to an average of £671. Those aged 65 to 79 will have seen their premium rise by 42.1% to £425.
“Insurers typically view older drivers as higher-risk because their reactions are considered to be slower, and if they are involved in a crash, their medical bills can be higher,” says Lucy Alderson in The Sunday Times.
So, what can you do if you are facing a steep rise in your premiums thanks to your age? Firstly, and most importantly, never simply accept the premium your existing car insurance provider offers you. It is highly likely you’ll pay a loyalty penalty for staying with the same firm.
Do the legwork
You need to shop around when it is renewal time. If you don’t want to leave your current insurer, shop around anyway, and then contact them to ask why they are charging you more than the quotes you’ve found online. Remind didn’t cause a collision, which them that existing customers means it may protect your cannot be charged more than no-claims bonus. That can lead new customers. to significant reductions on
When you are surfing the your car insurance premiums. web for a new car-insurance There are also some insurers policy make sure you accurately who offer discounts to estimate your annual mileage. dashcam owners.
Many older drivers don’t use When you are renewing, their car as much as they used try to pay for your new policy to – no daily commute makes upfront in one annual payment, a big difference, for a start – so it is usually far cheaper than
mileagend reducing your annual paying monthly. The Financial can help cut your premiums. Conduct Authority, the
If you only use your car City regulator, is meant to occasionally you may be able to be cracking down on firms cut your premiums drastically charging high interest on by opting for a pay-as-yougo monthly payments, but they policy. With this type of continue to do so. insurance, you are usually A recent study by Which given a small tag or black box found that the average interest that tracks your car’s mileage. charged is 23.4%. They also You then pay a monthly found that two providers don’t premium based on the number charge interest on monthly of miles you drove. payments: Hiscox and NFU
Consider installing a Mutual. But if you aren’t with dashboard camera in your those two, you’ll save money by car, too. It can help prove you paying annually.