How to Reduce your Annual Car Insurance Premiums

While annual car insurance premiums are falling at a considerable rate in the UK, it can still be difficult for young, inexperienced or unfortunate drivers to access affordable coverage. The average cost of car insurance may have fallen by 9.8% since July 2012, but the fact remains that you have a responsibility as a motorist to seek out additional savings.

How to Reduce your Annual Car Insurance Premiums

With this in mind, what practical steps can you take to reduce your annual car insurance premiums and achieve more affordable yearly coverage? Consider the following: -

• Regularly Switch Providers: While it is possible to make savings by forging long term relationships with reputable insurers such as AXA Insurance, the majority of providers tend to save their best deals for new customers. As a result of this, you are often best served by switching providers every 6 to 12 months. Insurers are renowned for offering discounts as a way of tempting customers to switch allegiances, and you can capitalise on this to make significant financial gains.

• Add an Experienced Driver to your Policy: For young and newly qualified drivers, the cost of car insurance can be prohibitive. One way of negating this is by adding an experienced driver to your policy, as insurers are likely to discount the annual premium if you add a supposedly safe motorist with a clean driving history. This will help you to create a more balanced and attractive claim in the eyes if insurers, which in turn delivers huge fiscal savings over the course of a year.

• Embrace the Art of Negotiation: Negotiation is becoming a lost art in the UK, as a diminishing number of citizens trust their knowledge or instinct when dealing with financial service providers. Rather than simply accepting the rates that you are offered by insurers, be prepared to negotiate with them and drive a more competitive deal. One useful tactic is to source several offers simultaneously, and use these terms to negotiate directly with rivals and secure more favourable packages.

The Last Word

As a consumer, your financial fate lies in your own hands. This is especially true when it comes to sourcing car insurance, as your knowledge, appreciation of the market and ability to negotiate will have a dramatic influence on the annual premiums that you are forced to pay.