We all know how uncomfortable it can be to open your car insurance renewal letter and see the insurer's renewal premium for the next twelve months. It can leave you feeling frustrated, out of control of your finances and possibly even a bit shocked.
But whilst there are a number of factors which determine just how expensive your quote might be, there are just as many which you can control that could lower your premiums too. Armed with a little knowledge of the process and realisation that you are actually in total control of your premiums, renewal time could begin to look a little less daunting.
The Factors You Can't Control
Before you attempt to save money on your car insurance quote, you first need to understand what factors insurance companies use to work out your quote in the first place. Some of these are easy to influence whilst others are much more difficult. Such as...
- Your age
- Your gender
- Your address
- Your driving history
Whilst gender could be seen as a disadvantage for men shopping around for car insurance, it actually works in your favour if you are female. Many insurance companies offer lower rates to women as they are statistically safer drivers. So if you are a female driver then one way to lower your insurance quote even further is to look for specific female only insurance policies.
In fact, whilst some or all of the above points may seem out of your control, it's important to remember that any insurer is using this data to judge what sort of risk you are. So, whatever your profile, you can reduce the risk and resulting premium with a little planning. For example, your age is out of your control and can prove expensive if you are under 25, so instead, reduce the perceived risk by taking an advanced driving course.
The same applies with your address. If you're not intending to move to a lower risk area, increase your car's security and, if possible, keep it in a garage overnight.
The Factors You Can and Should Control
In reality, just about every factor can be skewed in your favour with a little effort. But some are much easier to influence than others and most people simply don't have the time or will to make serious changes to their driving situation.
But the good news is that there are many more simple changes you can employ that can have a massive impact on that scary renewal premium. Here they are:
- Shop around - this can have the biggest impact if done right. Use at least two price comparison sites to create a shortlist then go direct to each insurer to verify the premiums.
- The car - if you don't mind changing your car to save money, consider cheaper, slower models that come with good security as standard. If you don't want to change, improving the existing security with accredited devices such as an alarm and/or immobiliser can cut your premium.
- Clear out the garage - if you have a garage or drive, store your car there. Storing your junk in a garage rather than your car could be costing you hundreds.