My car insurance renewal went up by just £1 this year - here's how I did it
We all know inflation has been a hot topic this year. Food prices have risen, petrol and diesel have added extra burdens, but many of us are still getting a shock when we come to renew our car insurance.
Some statistics point to the grim reality that we've seen premiums rise by an average of around 48% this year. So I wasn't surprised at all when the renewal quote for my 2011 Fiat Panda rose significantly. But I knew all was not lost. And, after trying a few simple tricks, I got it down to just one pound more than the previous year.
My 2022 premium was £220, and my renewal was quoted at £280. That's in increase of 24%, which could have been worse - but I knew I could do better. And eventually I paid £221.
Here are my simple tips on how to bring your own renewal costs down this year.
The golden rule: Never accept the renewal quote
You have nothing to lose by haggling. If you've had a clean year with no claims or speeding tickets your insurance company should be able to place a bit more trust in you and it's always worth giving them a call to appeal to their better nature.
'I'm scared to use kitchen as cars crash into it - a 4x4 ended up in the lounge'
Always shop around before accepting your renewal quote, and don't be afraid to haggle (Getty Images)While you're on the phone, ask them to go through every minute detail about your policy with you. Has anything changed? Is your job title different? Are you doing fewer miles than you expected? Are you parking the car in a different place? Some changes can push the premium up, but you might be surprised at the ones that can bring it down.
Bizarrely, by being honest and telling my company I mostly park my car on the road outside my house, rather than on my driveway, my premium reduced. If I parked it on my driveway every night, the premium would rise by a few quid. Insurance works in mysterious ways.
The lesson though, is that a few tweaks can have a positive effect, and literally every time I've haggled I've managed to save a few quid over the renewal quote, even on an identical policy. Like I say, you have nothing to lose.
Take advantage of offers and freebies
Insurance websites, particularly some of the big comparison sites, will offer everything from free gifts to cash back, so it can be worth hunting around before you commit to a new policy. This could mean the difference between accepting a similarly-priced renewal quote as an existing customer, or setting up as a new customer elsewhere.
Also check out the array of cashback websites out there, such as TopCashback, which offer money back when buying car insurance through their website.
Always shop around
This might sound obvious to some of us, but it's surprising how few people actually do it. Before you haggle with your own insurance company, get a second opinion. And then a third, and a fourth, and... Actually, just get as many as you can.
A bit of time spent even just on comparison sites can pay dividends (Getty Images)There are some brilliant comparison websites out there and using one will give you a sold benchmark that will, hopefully, be lower than your renewal already.
It's good ammunition when it comes to bargaining and you might just find a company offering a better premium, or perhaps a benefit that you hadn't considered before.
Consider adding a named driver
This won't work for everyone, but it works a charm for me. I also insure a motorhome every year and, because insurance companies don't like journalists for some reason, it's quite an expensive business. However one year I saved over £100 by adding my wife, who has a far more boring job in the manufacturing industry.
Obviously, if she adds me to her car, the premium increases, but always give it a try, even if you don't think your partner will ever drive it. If they've got a good insurance record and, especially if they live in the same household (it might not work otherwise) then it could save you a few quid.
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Try multi-car policies, if they suit your needs
If you own more than one vehicle, or especially three or four, like my household, it can sometimes be beneficial to try a multi-car policy. Admiral does offer perhaps the best-known one, but you'll find plenty of companies who will offer discounts for more than one vehicle. And the insured drivers don't always have to live in the same place.
This didn't work for me because my motorhome is a specialist vehicle, and it is a bit of a faff bringing all the renewal dates into sync, but the companies will help with that, so it's absolutely worth a try.
Join a club
It's surprising how many car insurance companies will offer some sort of discount if you're a member of an owners' club. The discounts might be just 5%, but they can be substantially more.
Usually, it will need to be a properly constituted club, but in the past I've saved a bit of money just by being part of a big Facebook community.
Joining an owners' club shows insurers you care about your carObviously, this is more effective with more interesting vehicles, but it's always worth a try, even with the more mainstream stuff.
Joining a club is also a great way to find free help and advice from fellow owners too, and it can be a lot of fun. You could even share personal insurance-saving tips among fellow owners too.
Pay annually
Many of us choose to pay monthly for our insurance premiums, and it's obvious why. The insurance fee can be one of the biggest costs alongside buying your car in the first place. For many people their premium is more than a set of tyres.
But paying monthly usually comes with an interest fee, and some insurers will actually offer a cheaper rate if you pay it in one go. This is definitely something to bear in mind, if you're lucky enough to be able to cough up a lump sum.
Increase your excess
If you really are feeling the pinch, and you don't mind taking a gamble, increasing your excess can work wonders for your premium. The excess is the part of any claim you would have to pay yourself, and there's usually a compulsory excess of, say, a few hundred pounds.
Bear in mind that increasing excess can make some smaller claims less worthwhile (Getty Images)If you ask for a voluntary excess, the insurer will reduce the premium accordingly, because you're accepting a larger portion of your own risk. So this is a very easy way to bring the cost down significantly. Do bear in mind though, you'd need to be able to afford to pay the excess in the event of a claim.
Talk to your company about the number of miles you do
I only use my little Panda for nipping around town, and the very occasional longer trip, so when I initially said to them I'd expect to do 6,000 miles per year I was quite a way out, it transpired.
I asked them to adjust this to a still rather pessimistic 4,000 per year and it really helped with the premium. It stands to reason that the less you use your car, the less risk you are subjecting it to, so it's something to think about.
Be realistic with your estimate, but definitely think about whether it can be lowered.
Sign up for an advanced driving course
Some insurers will offer big discounts for drivers who have completed accredited advanced driving courses. The course will cost more than you'll save but enhancing your driving skills will bring obvious benefits, and you'll always have that certificate.
Enhanced driving skills will give insurers confidence in your abilities (Getty Images)Only pay for what you need
Every insurer will try to offer you some extra benefits. Common ones include a courtesy car, windscreen cover, breakdown cover, or legal protection.
Firstly, you might find you already have some of these covered with other policies, or maybe your bank, so unless it's a freebie, unless you think you might need it, bin it.
They can often come in handy, but many people forget they've got the policies and never claim, so it can also be an unnecessary expense. Go through everything carefully.
Technology might have the answer
Adding security devices will, obviously, appeal to some insurance companies, particularly trackers. In fact, you might find some firms insist on them, especially if your car is particularly desirable. Fitting dash cams can also help your premium.
Always speak to your insurance company before investing and do bear in mind you're very unlikely to reduce your premium enough to meet the cost of a device, but it's a good investment.
Some insurers offer discounts for dash cam usersAnother bit of technology that really could make a difference is a telematics system, or a black box. Young drivers may have to have one of these installed anyway, but older drivers who don't mind having their journeys monitored could also see their premiums plummet.
Again, speak to your insurance company about this, as not all of them will offer the scheme.
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