Five ways to lower your Car Insurance premium

You may not like it, but car insurance is important. In fact, it is required by law, and for good reason. Obviously no-one wants to be involved in an accident, but nobody wants to be stuck with a big bill to pay for damages either. Even though insurance is necessary, there are ways to reduce costs. These tips not only minimise your insurance rates, but they make your driving more safe too.

Tip Number 1: Opt for a Higher Excess

How does paying more decrease your insurance costs? When you set a higher excess, that’s how. The excess is what you pay towards damages in the case of an accident. For example, let’s say your excess is £100. Now let’s imagine that you are in an accident, and the damages cost £500. In this example, you pay £100 (the excess), and your insurance company pays the £400 difference.

Now if your excess is set higher, your insurance premiums (what you pay each month for cover) are lower.

Tip Number2: Go High Tech

These days technology helps insurance companies put out lower quotes. One way is to have your car fitted with a special “black box” that collects information about your driving habits. For example, if you don’t drive much at night, this lowers your chances of an accident. The technology, called telematics, also records information about other driving habits, such as average speed, and all of this info can be made available to your insurance carrier. Good driving “scores” are then rewarded with lower premiums.

Even your smart phone can be used for this purpose. There are phone apps such as iSpot that do the same thing as the black box. The phone can even be programmed to alert you when you are driving outside of safe parameters. All of this is mostly thanks to GPS technology.

Tip Number 3: Theft Alert and Emergency Response Services

GPS technology can also be used to track your car in case of theft. There are various companies that provide this service, and most insurance companies give you a lower rate for carrying theft prevention.

Emergency response can also be incorporated though GPS technology. So if you have an accident you can be located immediately. Some systems even automatically open your door locks and cut off the fuel supply in the event of a crash.

Tip Number 4: Eyes on the Side and the Back of Your Head

Here your car is outfitted with special cameras and sensors for a relatively low price. For instance, a bumper camera can be installed so you can see everything behind you when you are backing up. Also, sensors can be fitted to the sides of your car to alert you when there is an object in your blind spot. This way you never change lanes unless it is all clear. This reduces risk, and car insurance companies like this so much that you can pay them less.

Tip Number 5: Shop Around For a Good Deal

Don’t stick with the same insurance company you’ve been with for years just because it’s easier than getting quotes and switching. Sure, getting a car insurance quote is a pain but if you use a comparison site (one example is Compare The Market) they will do most of the hard work for you. You only need to enter all your details in once and they’ll bring back results from hundreds of top insurers. You can compare the options they provide to find a policy which offers great value for money.


Although car insurance is necessary there are ways to cut costs. The best part is that many of these methods also make your driving safer. In the end, what we all really want is to avoid accidents. When you implement these tips, you save money, avoid risk, and everyone goes home happy and saf

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