I’m a driving expert and a common tip to “save money” on car insurance will actually cost you MORE

INSURANCE may seem like an obvious area where you can cut costs, but skimping too much could be a big mistake.

As the cost of living crisis really kicks in, millions of people are looking for ways to cut back on their expenses.

Do not skimp on your car insurance or it can be expensive


Do not skimp on your car insurance or it can be expensive

From switching to a cheaper supermarket to checking out cheaper gas prices, there are ways to lower your overhead.

But if you’re thinking that reducing insurance is a smart way to save some money, you might want to think again.

Car insurance is a legal requirement for UK motorists, so you can’t get rid of it entirely.

Driving without insurance could earn you six points on your license, as well as a hefty fine.

7 things that could cause your car insurance to be CANCELED
Car insurance costs a £100 JUMP – see the top 10 list and how to cut costs

And if you’re thinking of saving money by opting for less coverage, you might want to steer clear, too.

Alex Hasty, Associate Director of Compare the Market, said: “Third party coverage is the legally required minimum level of car insurance that drivers need.

“But our figures show that drivers with comprehensive policies typically pay half for insurance than those with third-party coverage.”

There are three main levels of coverage when it comes to auto insurance.

Fully comprehensive gives you the highest level of protection. It covers damage to your own car and others, and protects you in case of fire or theft.

With full compensation, you can claim for an accident even if you were at fault or you don’t know who damaged your vehicle.

Third and third, fire and theft are two alternative types of coverage that may be cheaper but offer less protection.

The main problem with these insurances is that they do not cover your own vehicle.

That means you could be seriously out of pocket if you’re involved in a no-fault collision or one where you were at fault, or if your car is damaged and you don’t know who did it, say in a hit-and-run. and run.

And surprisingly, you won’t actually save money by opting for less coverage.

According to CompareTheMarket, the average comprehensive car policy was £676 in June, but would pay £1,007 for third party, fire and theft, and a whopping £1,541 for the typical third party only policy.

The reason for this is that drivers with third-party coverage are more likely to be younger or high-risk drivers.

Alex said: “Third party policies provide less coverage for claims, but can cost more, as insurers’ risk model anticipates that drivers with third party coverage are more likely to make a claim and could claim larger amounts.

“There may also be less competition for drivers in the third-party market, so insurers aren’t fighting to offer the best price.”

The level of coverage you need will ultimately depend on your circumstances, of course, but there’s little point in paying MORE for a policy that gives you LESS coverage.

Car insurance prices have skyrocketed in recent months for a number of reasons.

New rules came out that prohibited providers from saving their best deals for new customers, so you can’t save as much as you used to shop around.

The skyrocketing price of second-hand cars, as well as a shortage of spare parts, has also pushed up premiums.

Insuring the annual premium for a Ford Fiesta Zetec now costs an average of £785, £129 more compared to the same period in 2021.

How else can I reduce car insurance costs?

However, there are still ways to lower your premiums.

Paying for your annual policy in a lump sum rather than monthly installments will save you an average of £60 a year.

Shopping on comparison sites allows you to compare prices from many different vendors so you can find the best deal.

Also check cash back sites for deals, as you may be able to get some of your money back on the purchase.

Alex said that younger drivers should try to choose a cheaper car when buying a vehicle: the value of the car will affect the cost of your insurance, so a high-spec engine will only increase your costs.

He said: “Normally the bigger the engine in your car, the higher the insurance premium.

“Drivers should also be careful when purchasing a car with custom modifications such as spoilers or wheels.”

Buying your policy in advance will also save you; usually buying your coverage 23 days before you actually need it to start will give you the best deal.

Those who stop looking for insurance until the day they need their policy to start will pay more.

Other ways to get cheaper car insurance include adjusting your job title and adding another designated driver to the policy.

If you don’t drive a lot of miles, you might be able to save with a pay-per-mile policy, where costs are linked to the amount of driving you do.

Now the trash can men say it's TOO HOT to pick up litter and the trains are delayed because of the heat
I'm a billionaire at 15, from helicopters to yachts, I'm SO exhausted

Earlier we rounded up nine of the best ways to cut car insurance costs.

And here’s where to find the cheapest gas prices based on our latest checks.

Leave a comment

Stay up to date

Register now to get updates on promotions and coupons

Shopping cart