Keeping your car insurance costs down

Over recent years the cost of vehicle insurance cover in the UK has rocketed, resulting in drivers having to shell out a small fortune for this type of cover. However, unlike many other types of insurance cover vehicle insurance is compulsory by law for anyone that is taking a vehicle out on the road, whether on business or for private use, and therefore consumers have no choice but to pay these premiums in order to comply with the law.

However, although premiums are higher these days it is possible to keep the cost of vehicle insurance to a minimum by taking certain steps. You will find that you can dramatically reduce the cost of cover in some cases by taking these steps, and this can make your overall vehicle costs far lower.

Choose the right level of cover

There are three levels of car insurance cover, and for those on a budget and with an older car it may be advisable to opt for one of the lower levels of cover rather than opting for the higher level. If you have a new or expensive car then you should opt for the higher level of cover for increased protection. However, many people – particularly newer drivers – tend to go for an older, cheaper vehicle to start with, and by opting for a lower level of cover you can continue to comply with the law whilst saving money on the cost of your cover. The three levels of cover available are:

Third party: This level of cover is the most basic and the cheapest, and is considerably cheaper than the highest level of cover. This level of vehicle insurance provides protection for any third party that suffers injury, loss, or damage as the result of an accident that was your fault. However, no financial protection is offered for your own vehicle.

Third party, fire, and theft: This level of insurance cover is the intermediate level of cover, and costs more than just third party but is cheaper than the highest level of cover. This is the most common level of cover, particularly amongst younger, newer drivers. With this level of cover protection is provided for any third party that suffers loss, damage, or injury as the result of an accident that was your fault. In addition, your own vehicle will be protected financially in the event of fire or theft.

Fully comprehensive cover: This is the most comprehensive and expensive level of cover, and provides financial protection for both the third party and for your vehicle, even in the event that the accident was your fault. However, the cost of this level of cover can be high, and therefore you may want to consider a lower level of cover if your car is older or of a low value.

Set your excess at a higher level

When you take out insurance cover you can select what level of excess you want on the policy. The excess is the amount that you will have to pay out of your own pocket in the event that you make a claim. The higher the excess level you set the cheaper your premiums will be, so you may want to consider setting your excess at a higher level in order to cut back on the cost of cover.

Take the Pass Plus test

For new drivers the cost of car insurance cover can be very high, particularly for those of a younger age. However, you could reduce the cost of cover by up to 35% in some cases by taking the Pass Plus test after you have passed your standard driving test. This adds to your driving skill and makes you a lower risk driver despite your inexperience or age, and therefore insurance companies can afford to reduce the cost of your cover.

Compare policies

These days it is easier than ever to compare the cost of insurance cover, with easy access to the Internet as well as to a number of price comparison sites. You should bear in mind that the cost of insurance cover can vary widely from one insurance provider to another, and therefore by comparing a number of insurance providers and getting a minimum of three quotes you can increase your chances of getting more affordable cover.

Opt for a cheaper car or smaller engine

The lower the value of your car and the smaller the engine size, the lower your premiums will be. This is because those with smaller engine sizes are less likely to get involved in high speed accidents that cost insurance companies a fortune. Those with lower value vehicles will not have to claim as much in the event of an accident as someone in a new, expensive vehicle. This is something that insurance companies will take into account when working out premiums.