The cost of car insurance is out of control. According to the AA, in 2010 the average driver is been forced to pay up to 20% more than the year before. There are various reasons for this ranging from difficulties for companies following the credit crunch, increased legal fees and increases in fraudulent claims. These are all things over which we do not have control, but we don't have to just accept the price increases. Moneysupermarket.com has used its connections with the biggest insurers in the country to come up with a number of tips, which could save you hundreds on your car insurance, regardless of your age. Indeed, many younger drivers can't afford an R32 due to the stereotyping utilised by insurers, but it doesn't have to be like this.
How to save hundreds on your car insurance
Compare and haggle
Your insurance firm will take you for granted after a year, so don't expect to get the cheapest possible deal simply by accepting the renewal offer. Phone up the insurance company and see how much they can knock off. Tell them that someone else has made a better offer and they will almost always offer you a loyalty discount. If your still not satisfied or actually want to see if you can get a better offer, check the prices offered by different insurers. The easiest way to do this is using comparison websites, but they won't get prices from every insurer, so use one and then try different insurers that aren't listed. Shopping around would save the average driver £205 a year according to Money Supermarket.
You'll be surprised how much you could save by shopping online. Most insurers are like Sainsbury's finance, and will offer a 10% online discount. This amounts to a saving of £90 for the average driver.
Pay a higher excess
Offering to pay a higher excess in the event of an accident will reduce the price you pay. However, be carefully not to offer to pay more than you can afford and this will obviously be a bad move should you have an accident. The average excess paid is £250.
Think about vehicle security
Approved alarms and immobilisers are another great way to reduce insurance costs because it obviously reduces the chances of a theft.
Putting an additional driver on your policy can sometimes save you money. It works best if they are order than you, have years of experience and no claims discount to offer. A 19 year old could save over £300 by putting an older driver on his insurance for a Volkswagen Golf.
Watch where you park
Where you park your car can have a big impact on the price you pay. With 50% of vehicle thefts occurring at night, it is obviously safer to park in a garage, and insurers will recognise this. Therefore, make sure to park your vehicle as safely as possible. If you can't put it in a garage, put it on your drive. Anything is better than on the road. However, don't lie about where it is parked because it will give the insurers another excuse not to pay out should your vehicle be vandalised or stolen when parked outside your house.
Reduce your miles
Cutting down the number of miles your doing will reduce the amount you pay for insurance, because it obviously reduces your chance of crashing as you will be spending less time on the roads. However, don't tell your insurer you are planning on doing less miles and then go back on this promise, as it will give your insurer an excuse not pay out if you have an accident.
Doing additional courses such as pass plus can cut up to 35% off your insurance policy, depending on the insurer. That's a £315 saving for the average driver. It can be done through most driving instructors and will cost you a bit initially, but the long running cost savings would overcome this.
Don't let them beat you
Don't let the insurance firms get away with ripping you off. Following these simple tips will save the average driver hundreds of pounds, and suddenly the insurance for the Golf R32 will begin to look affordable.