As the holiday season approaches, it’s important to take the time to think about how we are going to choose to spend our money. Many people prioritize gifting for their family and friends, but car insurance can be an overlooked expense that takes away from what you could be spending on these special people in your life.
That’s why it’s essential to look into ways to save money on car insurance during the holiday season or all year round. Doing this can help you save hundreds of dollars (or pounds) which can then be used in the holidays for giving back. Thankfully, there are many ways to save money on car insurance!
How to find the cheapest car insurance
According to MarketWatch, there are several things you can do to find the best and cheapest auto insurance.
Pay your premium annually
One of the best ways to save money on auto insurance is to pay the annual premium in full. When signing up for a policy, many drivers choose to spread the cost by paying monthly or semi-annually instead. Although this can make it easier to manage one’s budget, it is much more expensive in the long run.
Insurance companies typically build in hidden fees and extra interest charges when taking this option, which can add up quickly over time. That’s why opting to pay the entire yearly premium upfront can help you save hundreds of dollars each year. Not only do you avoid all those extra fees, but some auto insurers also offer discounts for customers who pay for their coverage annually.
Furthermore, if your financial situation changes during the year and you find yourself in a pinch, you can always apply for flexible payment plans that defer part of your costs over multiple months with no penalty fees. For these reasons, paying your auto insurance premium annually is always the smartest choice.
Review your coverage regularly
To get the most out of auto insurance, it’s a good idea to review your coverage regularly. Not only is this a good way to check for any changes in the law but it also helps you save money by avoiding paying for unnecessary coverage. Comparing auto insurance plans can help you find one that fits your budget while still giving you the protection and peace of mind that auto insurance should provide.
When shopping around for auto insurance make sure to consider factors such as discounts and add-ons that may be available based on certain criteria. By reviewing your auto insurance regularly you’re sure to save money in both the short and long terms.
Build a no-claims discount
For auto insurance customers in the UK, building up a no-claims discount is one of the best ways to save money. Here’s how it works: if you make no auto insurance claims over a specified period of time – usually three years – your auto insurance company will give you a large discount on your premium. This discount can be quite substantial, potentially saving you hundreds of pounds a year in auto insurance payments.
The best way to build up your no-claims discount is to drive safely and responsibly and avoid filing any auto insurance claims at all costs. However, if an unexpected incident does occur, such as a minor accident or auto theft, try to arrange for repairs without involving your auto insurer whenever possible; this will help you retain your hard-earned no-claims bonus and keep auto insurance costs down in the long run.
Avoid adding modifications to your vehicle
Modifying your vehicle can have both positive and negative impacts on your auto insurance cost. While a modification may add some aesthetic appeal to your car, it could also come with an extra fee from your auto insurance policy. Whether it’s a new set of wheels or a more powerful engine, modifications are likely to increase the price of auto insurance in the UK. Most auto insurers will consider any change made to your vehicle when determining premium rates –– this is done to assess the potential risk posed by modified vehicles.
It’s also important to note that modified parts may not be covered if you make a claim on your auto insurance. Therefore, it’s best to think twice before modifying your car, as it could prove costly in the long run if something goes wrong with one of these components.
Certain modifications can also void certain auto policies altogether, so always do research before committing to any changes. In short, avoid adding modifications to save money –– it’s safest (and more cost-effective) for both you and your auto insurer!
Avoid auto-renewing your insurance
Auto-renewing insurance policies are common in the UK and will often auto-renew for the same price as the previous year, making it a convenient way to insure your vehicle without having to shop around and find a good deal. However, auto renewing vehicles also means that consumers miss out on potentially lower prices available from other providers as there is no incentive for insurance companies to give them a better deal.
Cheapest car insurance companies
There are several car insurance companies in the UK that offer great services at an affordable cost. Some of the best and cheapest companies include LV=, Direct Line, and Aviva’s QuoteMeHappy.
With an impressive Trustpilot rating of 4.7 out of 5, LV= has a proven track record for delivering top-notch customer service and reliable coverage. For just £312, customers can benefit from comprehensive auto insurance coverage including third-party liability cover, windscreen cover, and the ability to protect your no claims bonus if you have one.
Direct Line Group (Privilege)
Direct Line Group is one of the UK’s top auto insurance providers, offering comprehensive coverage at competitive prices. Its Privilege brand offers auto policies starting from just £289, making it one of the most cost-effective options available in the UK.
When it comes to customer service, Direct Line Group has an impressive Trustpilot rating of 4 out of 5 stars. Plus, if you ever need to make a claim you can rest easy knowing you’re covered by one of the UK’s most reliable auto insurers.
Aviva’s auto insurance, also known as QuoteMeHappy, provides comprehensive auto protection for drivers starting at just £352. This makes it an affordable option for those on tighter budgets. By opting for this company you’ll have access to reliable and quality customer service as well as auto coverage options that are tailored to your needs.
Aviva also offers flexible payment plans, allowing you to make monthly instalments if necessary. The additional customer reviews on Trustpilot provide peace of mind; it has an overall rating of 4.2 out of 5 stars – an excellent track record of customer satisfaction!
By taking the time to find car insurance savings, you’ll end up with more money available to give during the holidays; plus you’ll have already saved money if something goes wrong with your car! Don’t let car insurance costs leave you broke this holiday season; consider how saving money on car insurance could help you give more when it matters most.