Technology

Auto insurance increased by £64 after rule change

MOTORCYCLE faces an expensive year ahead as the average car insurance premium has risen to £700.

This is much higher than the previous average of £636 last January, according to data from Compare the Market.

Motorists have been urged to switch and save while they still can

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Motorists have been urged to switch and save while they still can

Motorists have been advised to switch and save on cheaper car insurance rates while they are still available.

Several insurers have not raised prices since the Financial Conduct Authority (FCA) banned insurance “loyalty penalties” earlier this month.

Providers used to entice new customers with competitive rates before increasing their premiums every year, regardless of their requirements.

The controversial practice is known as “price walking”.

That has now been banned, prompting many insurers to raise prices widely in an effort to profit from a broader customer base.

But some companies have yet to increase their premiums – so there are still good deals to take advantage of.

“There’s a brief opportunity for savvy motorists to buy this year’s car insurance at last year’s prices,” said comparison market director Ursula Gibbs.

Top seven tips to lower your car insurance costs

Just because average auto insurance premiums have increased by more than 10%, doesn’t mean there aren’t many easy ways to cut your vehicle protection costs.

Here are some of Sun Motors’ top tips for cutting the cost of your car insurance.

Convert and save

This is less lucrative than it used to be because insurance providers are no longer allowed to offer attractive referral deals to new customers.

In an effort to penalize companies, the FCA has also punished converters multiple times.

But you can still make money by converting and saving – as long as you do it.

Not all companies have raised their prices, but they will.

Compare Markets estimates the average savings you can get by switching to the cheapest insurance policy is now £127 – up from £95 this time last year.

“The savings for customers looking to switch can drop dramatically as more insurers raise rates,” says Ursula Gibbs.

“If your policy is about to be renewed, you should shop around for a better deal as soon as possible.”

Buy multi-car insurance

It’s not a scam – real car insurance can save you a small fortune if you have two or more family cars.

Tailoring your policy to each vehicle, including renewal dates, is a useful way to maximize convenience if you have multiple vehicles in a household.

LV has previously told us that 10% of UK households with a carpool policy have saved around 40% in the cost of paying their premiums by combining coverage – which is around 400 table a year.

So if you have two or more vehicles in your driveway, be sure to keep an eye on this one.

Cut your cover

Getting a crash cover for your car can save you some money if you ever need it.

But if you’re a careful driver or just an occasional driver, it might not make sense to pay for additional protections.

Completely within the law no incident or comprehensive coverage on your car.

Aviva’s insurance expert Iain Hamilton told us this week: “Check what coverage you already have because you may be paying for something you don’t need.”

Better be safe than sorry – but if you’re feeling the pinch and want to save a few cents, this could be an easy way to do it.

Increase your voluntary excess

In short, this means you’re agreeing to pay more in the event that you claim your auto insurance.

That may not sound like a savings – but it can be.

Volunteering to pay a higher excess rate when agreeing to your car insurance can actually lower your annual premium, if your provider agrees.

But this is risky.

Don’t choose too high a quantity that you can’t afford, or you could end up drying if anything goes wrong.

Double check your mileage

Tell your insurance provider exactly how much you drive each year without rounding up or down.

If you round up, that means putting you in the more expensive group.

And if you round down and get caught, you could lose your coverage in the event of an accident.

So be safe and reasonable by being precise about your mileage – it can save you money.

Agree lower mileage with your insurance company

Install one black box in your car and agree the number of km with your insurance company during the year can save you a great deal of money.

Nurse Denisha in London told us in November she was previously paying £1,764 a year – and has managed to cut her premium to £872.31 as long as she limits herself to driving yourself at 3,000 miles.

That’s a staggering £891.69.

A low mileage figure may not seem realistic to you – but talk to your insurance company and you can negotiate a good deal.

Pay only for the driving you do

If you only use your vehicle to go to the supermarket on weekends, you will get cheaper car insurance someone riding in their car Daily.

That’s because insurance companies know you’re less likely to have an accident on a busy road or see you hurrying to your destination.

Be upfront about how you use your vehicle, and your policy can be tailored to your driving requirements – not someone else’s.

And if you’re on a multiple-car policy and only one of the cars is a commuter car, then you only have to pay the additional “commuting fee” for the vehicle being driven to work.

This is six apps you can use to cut your insurance costs including ByMiles and Cashback.

Drivers have been reminded that there will be major changes to the Highway Code later this month.

And motorists have been unsuccessful after controversial plans for a new smart car road were shelved.

Martin Lewis warns drivers to check your auto insurance now as thousands of policies are now void following company bankruptcy

https://www.thesun.ie/motors/8243741/car-insurance-premium-change-save/ Auto insurance increased by £64 after rule change

Fry Electronics Team

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