As drivers it seems that we are constantly having to pay out for something, whether it be fuel, road tax, servicing or general maintenance and the cost of these is only increasing year on year. So it is unsurprising that we will always try and cut these costs where ever we can, for an increasing number of people this might be to not bother with car insurance at all.
In September 2016 the Motor Insurance Bureau stated that there was around one million uninsured drivers on UK roads. If you don’t know who the Motor Insurance Bureau are, they make payouts to those that have suffered as a result of accidents caused by uninsured and untraced drivers and is funded by those that pay their insurance premiums like you and me.
As I’m writing this post my renewal notice has been posted through my letterbox. My renewal price has increased ever so slightly from last year. I don’t drive a powerful car and due to my age it is still relatively low, even though I have had a couple of minor accidents.
This increase was still not on so as is the norm when I get my renewal notice I went through a number of comparison sites and knowing that I could get the price cheaper elsewhere, which I did. Armed with this information I contacted my insurance company to see if they could beat or better the prices I found. Annoyingly my insurance company couldn’t or wouldn’t budge on the price. As a consequence of my insurance company’s inflexability I ended up moving to a different insurance company with additional services added including breakdown cover and windscreen cover.
So why the increase in insurance premiums?
In an article by Whatcar insurance companies cite three reasons for the increase in the cost of our premiums, these being the cost of repairs, the second is an increase in insurance premium tax and the third being an increase in personal injury claims.
160% Increase in a colleagues insurance
I know a young man that drives a pretty nice car. Last year his insurance was in the region of £500, this year his insurance company has increased his insurance to £1300. When will motorists get a break.
I appreciate that some will say that it is our choice to use our own transport and you should use public transport more. The trouble is public transport in my own opinion, for what it’s worth, is not as reliable as we need it to be. After a long day at work do I want to be stuck on public transport sitting next to someone with their music banging through their headphones, stopping at every stop, possibly waiting because they are early, that is if it even turns up or do I want to get into my car, having the option to drive straight home or take a detour to my local M&S.
So what can we do to cut the costs
• Look at whether you can afford to increase your excess
• Consider your mileage
• Pay it all in one lump sum
• Consider adding another more experienced driver
• Think about what you are going to be using the car for. Is it commuting, domestic, business or combination
• I can’t emphasise this enough. Don’t auto renew. If they don’t want to provide you with a decent offer, do they deserve you as a customer!
Whilst insurance is a necessary evil, you don’t have to pay over the odds. If you take a little time out and do your research great prices could be had. It seems obvious but utilise all the tools available to you.
Comparison sites are your friend but don’t rely wholly on them. There are still a few insurance companies that cannot be found on comparison sites, so don’t forget to make enquiries with these too.
Companies currently not on comparison sites include Direct Line, Aviva and Zurich. When you have found a deal that might be worth a making your way to TopCashBack or Quidco and see whether you can get even more money off.