posted 7 years ago

How To Reduce Motor Insurance Premiums

Reducing motor insurance premiums is a national pass time for young motorists.

Reducing motor insurance premiums is a national pass time for young motorists. The cost can be higher than a malfunctioning satellite, after all, forcing many teenagers off the road and back onto their skateboards. As such, What Car? has revealed ten money saving tips:

- Increase your excess. Boosting the amount you pay in the case of an accident can have a direct effect on your premium. A £400 excess increase can bring down your premium by almost the same amount. (Average saving £277.)

- Stick with a lower trim. Going for the top-of-the-range trim level might well bump you up an insurance group. If a 17-year-old driver upgrades from a Studio to an Edge trim on his Fiesta, his costs could jump by around £400. (Average saving £432.)

- Research the level of cover. Third party or third party, fire and theft cover is usually cheaper than comprehensive insurance, but the average saving is so small that we would always recommend choosing the best cover you can afford. (Average saving £53 - third party only.)

- Add a parent. Convincing a parent to join you on a policy can bring down the costs significantly. Our sample driver reduced his premium by more than £1,100 just by adding his 52-year-old accountant mother to his policy. (Average saving £1,005.)

- Extra training. Insurers appear to be undecided on the merits of the most popular driver training: Pass Plus. Some don’t offer any discount for taking the six-hour course, while the average premium reduction for those who do is £456. Check with your insurer before you commit. (Average saving £456 - if offered.)

- Get a no-claims discount. Many insurance companies will now let you build up a no-claims discount on someone else’s vehicle, so try to convince a parent to let you use their car. (Average saving £253.)

- Leave out the mods. Some insurers might not charge you for adding alloy wheels, but that full body kit could end up costing you more in higher insurance premiums than its price suggests. (Average saving £305.)

- Stick to a curfew. Restrict your driving hours to between 6am and 11pm. This may not be for everyone, but it could save you cash. (Average saving £492.)

- Stick with a smaller engine. A step up from a basic 1.25-litre Fiesta to a still-modest 1.4 can bump up insurance premiums by more than £250. (Average saving £265.)

- Shop around. Start your search on comparison websites, and then ask companies directly if they can beat the lowest prices you find.