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With the average car insurance premium in the UK costing around £600, there are several smart ways to save money. The cost of your insurance premium is based largely around the annual mileage that you do and the risk of you making a claim. By managing these effectively, Forces Compare provides some useful tips to help you save money up to 80% on insuring your vehicle.


1. Add a Named Driver




A named driver is an extra person added to your person who is legally allowed to drive the vehicle. This is usually a parent, spouse, sibling, son or daughter – but the idea is that if the named driver is an older and more experienced driver aged around their 40s and 50s, it is assumed that they will share the driving and be less likely to make a claim. Therefore, the cost of insurance should be lower.

By comparison, having a named driver who is a young person, aged 25 or less, is in fact adding more risk to your policy and this will make the overall cost increase. This is because it is assumed that the named driver will be sharing some of the driving.

It is important that the named driver you use does in fact use the vehicle regularly. If you add their name to the policy for the sake of lowering the insurance cost, it is known as fronting and is illegal.


2. Use Your No Claims Bonus




Your no claims bonus is the discount added to your insurance policy to reward you for not making a claim. If you are driving your vehicle and are not involved in any accidents or causing any damage to your car, you will therefore make ‘no claims’ and it suggests that you are a safe and low risk to insure. 

As a result, your insurer does not have to pay out any claims or damages and is willing to reward you with a ‘no claims discount.’ This discount can start at 30% in the first year and increase incrementally every year to 40%, 50% and even as high as 80% after 5 years, depending on the insurer.


3. Pay Annually, Not Monthly




Most insurers give you the option to repay your insurance premium in one annual fee or monthly payments. Whilst paying monthly might seem like a practical way to spread out the cost, car insurance providers are likely to charge you an extra 10% to 20% for this convenience. So if you have the opportunity to pay for your annual policy in full, check the costs and consider doing so to save money.


4. Use a Black Box




A black box is a smart device that is added to your vehicle and measures the quality and distance of your driving. It is around the size of smart phone and fitted just underneath your glovebox. The device is connected via an app or online login and it monitors your distance in driving, your speed, turning, accelerating, braking and more.

The device, also known as telematics, is able to track your mileage more effectively and if it turns out that you do less miles than expected, this will entitle to you to pay a lower premium. 

By measuring the quality of your driving more effectively, it will detect if you are a safer driver and it will send this information to your insurer who will lower your insurance premium accordingly.

For many people, they feel like they hypothetically have their insurer sitting in their car, which makes them drive more cautiously. For young drivers who are often branded as being higher risk, it is an opportunity to truly reward those that are safer.


5. Use Multi Car Insurance




Multi car insurance is used for buying insurance cover in bulk. Ideal for families and couples, it allows you to put multiple vehicles, cars and bikes under one policy and save money. The insurer sees this as a way to coup multiple cars at once, so is willing to offer a discount of up to 20% or sometimes more.

Multi car cover can also be used by friends and people at different addresses, provided that they are all sign and agree to be under the same policy.


6. Increase Your Vehicle’s Security




If your vehicle is more secure and is less likely to be stolen, this reduces the likelihood of making an insurance claim and the insurer having to replace the lost or stolen car. Ways you can make your car more secure include:


  • Keeping the vehicle in a garage: Making it hidden from potential burglars and creating a deterrent from it being stolen. If you can show proof of how the vehicle is kept locked up overnight, you will receive a reduction on your insurance quote.
  • Immobiliser: Costing around £85, this is a device that stops the engine working unless the correct key is used. This reduces the risk of hot wiring or other attempts to steal your vehicle.
  • GPS Tracker: A lot of new, smart cars come with GPS trackers but adding this to your vehicle makes it easier to find if it is lost or stolen, again reducing the risk of theft and a possible claim.


7. Avoid Making Claims




The cost of your policy is based largely on the potential risk of making an insurance claim. However, if you can avoid making a claim, you are able to reap the rewards of a high no claims bonus.

To avoid making claims, you can continue to be a cautious and sensible driver or when you encounter dents, scratches and other damages to your car, you can consider paying for these out of your own pocket, rather than making a claim and losing your no claims bonus long-term. 


8. Take Extra Courses




Extra driving courses are available to help consolidate your driving and also learn extra skills including:

  • Driving in bad weather
  • Van manoeuvres
  • Handing with loads
  • Advanced mirror use
  • Space awareness

Pass Plus is one of the most well-known additional driving courses and whilst it may cost between £100 to £180, the saving to your overall insurance can be much more than this. It is particularly popular for young drivers looking to reduce their insurance premiums. 


9. Pay More Voluntary Excess 




Your excess is the amount you have to pay in order to release a claim on your insurance policy. This is usually a compulsory excess of just a few hundred pounds and is set by your insurer e.g £200. There is also a voluntary excess which you can pay on top, and by opting to pay a higher voluntary excess, it implies that you are willing to fit more of the bill if you have to make a claim. 

By showing your increased commitment, car insurers are able to lower your premium. As a business owner, you can request that some of your drivers pay for their own voluntary excess– because if they believe that they are a safe driver and won’t crash, they should be willing to pay a higher voluntary excess short-term.


10. Use Forces Compare





Using sites like Forces Compare allows you to compare car insurance and save money. Our site gives you access to products from several competitive insurers, who are eager to get new customers on board and can offer ways for you to save money on your premium.

Whilst Forces Compare was originally focused on providing insurance for military personnel, after much demand, our services can now help everyone to find great deals on their insurance, whether serving, a veteran or a civilian. Using our site is free, and all quotes are completely no obligation.

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