Viva Press Release
The average cost of car insurance in the UK is £561 a year, with 55% of British drivers deeming their car insurance is excessively expensive. A further 18% advised that they’d had to dip into their savings during the past year in order to afford their annual premiums.
Dan Whittaker, a personal finance expert at Vivamoney.co.uk, shares 7 tips on how you can save on your car insurance renewal.
1. Consider your options before you agree to renew
‘It’s estimated that those who allow their car insurance policies to renew automatically are charged up to £49 a year more than those who shop around for a better deal and switch providers,’ Dan warns. ‘A recent survey showed that 19% of drivers stated that they didn’t believe switching would make a beneficial difference to their finances, and 25% said they opted to stay with their current provider for ease. While renewing may be the most hassle-free route to take, it may not necessarily be the cheapest.’
2. Shop around for the best deal
‘Last year, a survey revealed that 38% of drivers changed their car insurance provider to save money.
Whether your active policy is coming to an end or you’re struggling to keep up with the charges imposed by your present provider, you can make use of comparison sites such as Go Compare and Compare the Market to scope out the most competitive deal.
It’s also worth bearing in mind that some providers may offer incentives for new customers, which could also help you bring down the cost.
‘If you’re looking to leave your existing policy early, be aware that your current provider may charge you a cancellation fee. You should take any potential fees and charges into consideration when you’re thinking about changing to a cheaper policy and weigh up whether the switch is financially viable.’
3. Negotiate with your current provider
‘If you do happen to find a better deal than your current provider is offering, it might be worth getting in touch to let them know.
Companies are usually keen to keep hold of their customers, and therefore may be willing to match or better the deal you’ve found.’
4. Double up
‘Do you share your vehicle with somebody else? If so, it might work out cheaper to simply add them to your policy as an additional driver, rather than both of you taking out individual policies.
This could also be a savvy money saver if you fall into the “high-risk driver” category, as having a more experienced and seasoned driver on your policy could help to lower the cost.’
5. Reduce your mileage
‘Having lower mileage could positively influence the price of your car insurance.
To put it simply, the less miles you drive, the less you’ll be on the road, which in theory should decrease your likelihood of having an accident.
If you drive less than 6,500 miles per year, you may be eligible for low-mileage car insurance. You may also be able to make use of pay-per-mile insurance.
‘Looking for ways to cut back on your miles? Start small,’ Dan says. ‘If you live close to the supermarket, vow to ditch the car for those quick, midweek top-up shops. If it’s a nice day, why not do the school run on foot? Eventually, using your two feet instead of four wheels for shorter journeys should come as second nature, potentially benefitting both your wallet and your health.’
6. Commuting costs
‘Did you know that using your vehicle to commute to work could result in an increase in your premium? Providers will generally associate commuting with regular journeys, particularly during rush hour, which may heighten your chances of being involved in an accident.
If you have the option to, working from home could save you money on your car insurance. You may also wish to look into using public transport as an alternative method of commuting – just be sure that this is cost-effective in regards to the amount of money you’re saving on your insurance.’
7. Look into different payment plans
‘Depending on your provider, you should be able to choose whether to pay for your car insurance in one annual sum, or through monthly instalments.
While paying the entire amount upfront may feel like an unaffordable option, it’s worth bearing in mind that breaking the payments down into monthly portions will likely incur interest. This will increase the overall cost.’
Viva Money has shared tips on how to save on your car insurance.
-ENDS-
About Viva Money
Viva Money is not a lender but is a fully regulated and authorised credit broker. Viva Money is a registered Trading Name of Digitonomy Limited, Registered in England and Wales (Company number 08385135), Registered Office; Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Digitonomy Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 690249. Licenced by the Information Commissioners Office, (registration number ZA007309)
Website: https://vivamoney.co.uk/
Dan Whittaker - Personal Finance Expert at Viva Money
Dan has worked in the consumer finance sector for over a decade in a number of roles, including developing and maintaining commercial partnerships, marketing, and digital development.
Dan has strong market and product knowledge across a range of consumer finance products including, but not limited to, credit cards, savings, loans, and mortgages.