Tips on how to get the best deal

SHOP AROUND

Although the changes effective from January 2022 mean the savings might no longer be as big as before, it’s still worth checking renewal prices on the main comparison websites, as well as the sites of companies such as Aviva and Direct Line that don’t appear on comparison sites.

It’s worth checking for deals even if your insurance isn’t up for renewal soon.the fee to cancel your existing policy is likely to be £50 or less, so if you can save signi cantly more than that by switching to a new policy, you’ll still be better off.

Once you do nd a cheap quote, you need to snap it up quickly, because some insurers only offer the best prices for as little as 24 hours. After that, the cost of the premium can rise markedly if you leave it for a day and go back to it, even though none of your details have changed.

PAY ANNUALLY

The annual cost of car insurance can seem daunting, but it’s worth paying for it up front because interest rates for paying by monthly instalments can be as high as 30% APR, and that could add hundreds to your overall bill. If you don’t have cash in the bank to pay for the cover, consider using a credit card with a low or zero percent interest rate for purchases, because it could be cheaper than the interest rate charged by the insurance company.

Another reason to avoid monthly instalments is that you’re effectively taking out a loan with the insurance company, which will run a ‘hard’ credit check that will be visible on your record and could affect how other lenders treat you. If you pay for your insurance up front, the insurer will only do a ‘soft search’ on your credit history to con rm your address and other personal information, and this won’t affect your credit score or be visible to other companies.

PICK YOUR PROFESSION CAREFULLY

Although you can’t lie about what you do for a living, there might be a number of ways to describe your job, so play about with the options on a couple of websites to see how much you could save. Declaring your occasional job can help, too; adding a part-time teaching assistant’s job to our full-time student Fabia driver’s pro le cut his premium with Axa (via Gocompare) by £40.

RAISE OR LOWER THE EXCESS

If you’re the gambling type and aren’t too risk-averse, you could opt to increase the voluntary excess (the portion of a claim that you pay) in order to reduce your premium. However, it’s not always worth raising the excess too much. For instance, if your excess is £1000 on a policy for an older car, you might not get any payout at all in the event of the car being written off.

MORE COVER COSTS LESS

There are three main levels of car insurance: third party (which only pays out to the other person if you’re involved in an accident), third party, re and theft (which also covers those two additional causes of accidental damage or loss) and comprehensive (which also covers most causes of accidental damage).

It might sound strange, but buying comprehensive cover, rather than third party, re and theft, often works out cheaper. That’s because insurers price policies according to how much they’re paying out to those taking out that type of cover.with younger, less experienced drivers (who tend to have the most accidents) accounting for many third party policies, such cover can prove more expensive than comprehensive. In fact, new drivers might only nd it possible to get comprehensive cover.

ADD A NAMED DRIVER

When arranging a policy for a younger driver, it’s worth adding an older, experienced driver with a blemish-free driving history.when we added a 56-yearold female driver with no claims or convictions and a long no-claims bonus to our Fabia driver’s policy, it shaved £144 off the premium.

EXTRA TRAINING

Some insurers offer discounts of up to 30% to drivers who’ve taken extra training. Certain courses, such as the advanced driving course run by IAM Roadsmart, unlock reduced premiums via their own bespoke insurance services.

USE A DASH CAM

Some insurers will offer a discount to drivers who have a dash cam in their car. Even if you don’t get money off, it’s worth considering getting one, because it could provide useful information about who was at fault in an accident.that said, some insurers will demand that you pay back any discount given for having a dash cam if you’re involved in an accident and then aren’t able to provide footage.

PROTECT YOUR NO-CLAIMS BONUS

Although this could add a signi cant amount to your cover, it will ensure that making a claim won’t cost you at renewal time. Adding no-claim bonus cover to our young driver’s policy would cost £120 for the year, but means that he will still be able to declare a full year with no claims next time he renews, even if he has made a claim in the interim.that equates to a potential saving of around £400.

SECURE YOUR CAR

Fitting a Thatcham-approved alarm, immobiliser or tracking device can get you an insurance discount of around 5%. Many newer cars have these as standard, so check if your car has them and make sure you declare them. Even if you can’t recoup the costs through your insurance, a deterrent for thieves could save you the hassle of having to claim for your car being stolen further down the line.

‘It’s worth paying for your car insurance up front, because interest for paying in monthly instalments can add hundreds to your bill’