Quick guide to cheaper car insurance


Aug 16, 2013
Quick guide to cheaper car insurance


I received a renewal notice for our car insurance a few weeks ago. We have 2 cars; nothing flash, although I do have to admit to buying an old convertible when I was 50. Yes I know, mid life crisis and all that! Having previously had a car through work which impacted heavily on my ‘no claims bonus’ I remember last year’s premium being a bit on the high side but I was amazed to see the renewal had increased dramatically to over £900.

Having almost fallen off her chair in utter disbelief, Claire was all ready for selling one of the cars but after calming down, she immediately got on the internet and started comparing quotes. Would you believe that the best quote we found was for the same company we currently use and what is more incredible, it was half the price of the renewal notice. Yes that’s right, a massive £450 less.
I still find it hard to believe that in return for your repeat business and customer loyalty, many insurers (and it’s not just car insurance by the way) actually hike up the cost of your premiums rather than reduce them. How can that be fair?

So the moral of the story, regardless of whether you are looking for a new service or renewing an old one is:

• Always and I mean always shop around
• Never assume the company you have been with will offer you the best discount
• Look online, you usually get the best deals

There are a number of other ways you can look to reduce your car insurance. The biggest impact has to be your ‘No Claims Bonus’, which is the discount you get as a result of not making a claim. As long as you continue to be claim free, this discount increases on a yearly basis until you reach the maximum level which is usually after around 5 years. Your ‘no claims bonus’ could reduce the amount you pay by up to 60% which of course will have a huge impact on your finances. One point worth keeping in mind when it comes to renewing your insurance is that you can choose to protect your no claims bonus. It will increase the price you pay but may be worth it in the long run.

Another thing you can do to get cheaper car insurance is to change the excess, which is the amount of money you are prepared to pay towards each claim. Quite simply the more excess you are prepared to pay the less you will pay for your insurance cover.

When it comes to paying for your car insurance, paying in full is a better option if you can afford it. Of course a monthly direct debit can help with budgeting but it does come with additional costs so expect to be charged more.

Finally make sure you give accurate mileage when applying for car insurance as your cover will be cheaper the less miles you do and don’t fall into the trap of being swayed by features you don’t really need. Breakdown cover may sound appealing but it may be cheaper to buy it as a separate policy.

For more information on reducing the cost of your car insurance, take a look at our website.


Ashley Shepherd is an Over 50s Personal Finance Expert

ashley shepherd

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