Everyone wants the best deal on their car insurance. Despite this, insurance charges can often seem opaque, and beyond the understanding of most of us. There are some things that you can do to make your insurance cheaper, however.
How do you lower your insurance premium?
You can take out insurance in ways that make it cheaper for you. One way is to accept a higher voluntary excess. This will usually lower your insurance premium. You can also make up for the higher excess with an excess protection policy. Equally, you can make sure that you describe your employment status accurately – a different job title can make your insurance cheaper.
One of the easiest and most effective ways to lower your insurance premium is to take out insurance at particular times of the year. Analysing the quotes that insurers offer their customers is a good way to see exactly how the prices can vary. A study by Money Super Market discovered that there was a variation of up to £50 throughout the various months.
When is cheapest?
August is the cheapest month to get your car insurance, according to the study. August’s average price was £496 for a year. This is in contrast to January, where the average price was actually £549 a year. This represents a major drop off through the year, which is counterbalanced by a rise by December to an average of £540.
Where you get insured also makes a significant difference to how much your policy costs. Living in East London makes your policy go up to an average of £935.20. This is in comparison to the Outer Hebrides, where the average cost is only £303.47. Your address can have a large impact on how much your policy costs you.
Despite the variations in potential price, you might find that all insurers have something in common. After a write off, you will likely find that your insurer pays out less to you than you initially paid for your car. This is because they usually only pay out what your car was worth at the time of the accident. GAP Insurance covers the difference between what you paid for your car, and what your insurers pay out to you.