So you’ve purchased a new car and are now ready to burn rubber on the road, right? Wrong! Before you can legally (and safely) show off your new ride, you must first obtain the right car insurance policy. But as with most things in life, choosing the right policy requires more than just deciding between plan A or plan B. And with the average cost of car insurance at more than £1,000 a year, it’s important you do everything possible to get the best deal on your policy.
Here are a few tips to help you get started, courtesy of MoneySupermarket.com:
- Shop around. Thirty percent of drivers could save up to £400 on car insurance by shopping around. Never settle for the first quote you receive — chances are, there’s a better (and cheaper) policy waiting for you somewhere else.
- Pay more excess. Your excess is the amount you must pay toward any claim, which is typically around £150. If you increase your policy’s excess, you may be awarded a lower premium.
- Drive responsibly. Thanks to the points system in the UK, the more points you have on your license, the higher your insurance premium will be. By following the rules of the road, you can avoid accidents and keep your premium costs low.
- Avoid claims. If you avoid filing claims, you could qualify for a no-claims discount (NCD), which could save you more than 50 percent on your premium after a few years. If you are involved in an accident and the repair costs are manageable, it’s best to pay for them yourself to preserve your NCD.
- Consider your mileage. If you only drive on the weekends or to the grocery store once a week, you are more likely to pay less for your car insurance. Drivers with low mileage will typically receive a lower premium because they are less likely to be involved in an accident.
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