We all know how complex and confusing insurance can be. With an average car insurance cost of £995 per year, it’s an expensive business, too.
In this article, we’ll offer advice and tips for cheaper car insurance, with a focus on how temporary car insurance could help reduce costs in three different scenarios…
1. Swap your auto renewal for cheaper temp car insurance
When it’s time to renew your annual policy, keep an eye out for an auto-renewal. It’s always worth shopping around to find a policy that suits your needs and situation and bear in mind that there are no additional charges incurred for stopping cover once your annual policy expires.
This is where cheap short-term insurance offers real value. Provided the vehicle is taxed, you can take out temporary car insurance from Tempcover for a time period ranging from one hour to 28 days.
This gives you the chance to research the annual policy most suited to your needs while being legally insured to drive and live your day-to-day life. Confused.com’s research shows the best time to purchase an annual policy is around 18-21 days before renewal date.
2. How to reduce car insurance when buying a new vehicle
While getting a new set of wheels is exciting, it can also be stressful when it comes to finding cover. One way of giving yourself more time to find a policy that suits your needs is to get short-term cover when buying the vehicle.
Some dealers may provide temporary car insurance as standard when you pick up the car, but not all do. It’s all too easy to get caught up in the excitement of signing ownership papers and then be hit with the reality you’re not insured to drive the car.
In this situation, most people opt to contact their annual insurance provider to get cover on the spot, missing out on the opportunity to research the best deal. This flexible and comprehensive cover also won’t affect your No Claims Discount.
If you choose to Tempcover your new vehicle, you can drive the car home immediately. This will give you the time to research the best annual policy for your needs. You can get a quote for temporary car insurance in under 2 minutes by following these simple steps:
Tempcover IT!
- Visit www.tempcover.com
- Fill in your details
- Get your quote
- Purchase your policy
3. Are you insured to drive another car?
Whether you’re sharing the drive on a long journey, borrowing a car from a friend or family member or lending yours to them, you need to make sure the driver has the relevant cover.
Most annual insurance policies are restrictive when it comes to covering additional drivers or vehicles, meaning the onus is increasingly being put on drivers to find and interpret the wording on their certificate of motor insurance before driving another car.
Your policy documents will have info on if you are covered to drive other vehicles but it’s unlikely to be the case, as the Driving Other Cars (DOC) provision has been quietly phased out in recent years.
If you were to drive a friend or family member’s car and ended up having an accident (or vice versa), you and the vehicle owner could be left with a huge repair bill for the car – and you’d potentially lose your No Claims Discount. You can add the named drivers to your vehicle policy, but this could prove both time-consuming and costly depending on the insurance provider.
This is where temporary car insurance can add real value and help you save money. You’ll be able to get fully comprehensive cover and choose exactly how long you need it for in a matter of minutes. You can even choose when you want the cover to start.
Where can I find the cheapest car insurance deals?
There are many ways you can cut down on your premium. These include:
- Adjusting your voluntary excess – If you’re happy to (and can afford to), you could increase your voluntary excess (the price you will pay towards making any claim) to lower your insurance premium. However, just be sure you are able to pay the amount you select if you have to make a claim.
- Adjust your annual mileage – Did you drive less miles than expected last year? Let your insurer know as this could also lower the cost of your policy. It’s extremely important (and a legal requirement) that you are honest with your insurer when it comes to declaring your mileage.
- Shop around – When it comes to finding the right annual policy for your needs and budget, it’s worth taking the time to gather quotes from various insurers. You can either go to their websites directly or use a comparison site like Confused.com.
- Pay annually rather than monthly – Although it may seem like a lot of money to pay out in one go, annual policies can often save you money as opposed to monthly payments. This is because monthly payments chip away at an annual premium. There are also sometimes deals on year-long insurance policies.
- Reduce unnecessary add-ons – While the likes of breakdown cover, personal injury cover and replacement key cover are very useful and have their place, think about what you actually need and whether you could get these cheaper as their own policies rather than adding them onto what could be an already expensive annual car insurance policy.
Lowering the costs of car insurance
Although there’s no getting away from the fact you will have to spend out on your car insurance, there are a number of ways of reducing the costs. You could get a smaller or less powerful vehicle (Auto Express’s list of the cheapest cars to insure in the UK highlights the Hyundai i10 and Volkswagen up!), add another named driver, choose comprehensive rather than third party cover or pay for your annual policy upfront to help reduce the costs.
Temporary car insurance can cover you in the short term. This would give you the chance to find the best annual policy to suit your needs.
Frequently Asked Questions
What is the 21-day rule for car insurance?
MoneySavingExpert Martin Lewis claims the sweet spot for getting a cheaper new quote (not a renewal quote) is 23 days before your car insurance renewal date. This is based on years of research and because people who leave sorting insurance to the last minute are likely to be viewed as higher risk.
When is the best time to buy car insurance?
Many industry experts have differing opinions on this (Confused.com data says 18 days before renewal date, Martin Lewis 23 and Which? 26) but the general consensus is to sort your insurance two to four weeks before it’s due for renewal. Of course, if you need more time you can always get temporary car insurance for up to 28 days while you consider your options.
Why is car insurance so expensive?
The Telegraph reports ‘According to the Association for British Insurers (ABI), a trade body, the average premium for comprehensive motor insurance rose in price by 25pc over the last year. Insurance is now the most expensive it has been since the ABI started collecting data in 2012.’ This is due to the fluctuation of the economy and other factors including newer cars relying on technology that is more expensive to fix.
The two main reasons for car insurance premiums increasing so much are economic reasons and personal risk factors. While the economy is beyond most of our control and has found insurers facing higher costs that could in turn end up being absorbed, there are things we can do to reduce the latter: shopping around, increasing excess and young drivers could consider a black box policy.
What is the cheapest level of car insurance?
While you may think that third-party insurance would be the cheapest form of car insurance as it only covers the minimum costs (injury to a third party and damage to another person’s car or their property), Confused.com data suggests otherwise. Their research found that comprehensive insurance actually worked out cheaper than many third-party policies. This is because high-risk drivers traditionally tended to go for third-party cover to lower the cost of their premium. Insurance companies have adjusted their pricing to reflect this.
Are older cars cheaper to insure?
Many cars lose value over the years, meaning an insurer won’t have to pay out as much for repairs etc. This means they are generally cheaper to insure than newer cars. Exceptions to this include any that could be deemed classic cars.
Sources and links:
https://www.theguardian.com/money/2024/jan/16/average-car-insurance-cost-uk-prices-rise-inflation
https://www.tempcover.com/front-cover/insurance/driving-someone-elses-car-the-options
https://www.confused.com/car-insurance/guides/tips-for-cheaper-car-insurance
