Increasing motor insurance costs are having a dramatic effect on the outgoings of many families in the United Kingdom. However, there are a number of ways that insurance costs can be reduced. While a safe driving history will inevitably secure a higher no-claims discount when the time comes for renewal, there are a number of steps that can be taken to reduce insurance costs with immediate effect.
Increasing the excess on a motor insurance policy will immediately lower the premium on any new policy. However, it must be remember that the higher the excess figure is set at, the more the policyholder will have to pay out themselves in the event of an accident.
If a motorist is driving an older vehicle, it is usually more cost-effective to purchase a lower level of coverage. Instead of opting for comprehensive cover, a third party option would usually be more suitable and affordable. Costs can be lowered further if any other named drivers on a policy are removed.
Shopping around for motor insurance has never been easier and the vast increase in the number of price comparison websites in recent years has made this easier than ever. Alternatively, UK drivers may find that using an insurance broker can also be a money-saving option when renewing or taking out a motor insurance policy.
Naturally, the type of vehicle being driven will have an automatic impact on insurance costs. If driving a high performance of modified vehicle is causing insurance prices to soar, it may be worth downgrading for a year or two until a higher no-claims discount rate has been secured.