Car insurance is one of those adult things you begrudge paying for, but it’s an absolute essential. For some, it can be a huge chunk of money - particularly for newer drivers - and with the cost of living crisis looming, it’s just another stress to think about.
I’ve had my car for five years this April, a little Mitsubishi Colt I affectionately named Missy when I bought her as my first motor in 2017. It cost me £1,300, an extra arm and leg in warranty, and around £900 in insurance for my first year.
Slowly but surely, with no claims on my insurance, my renewal price has crept down year on year, costing me £572 in 2020, down to £509 in 2021.
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This year, my renewal for insurance with Elephant leaped down to £341, which I was already feeling pretty pleased about, down £168 from last year - nearly a third.
But there are a couple of things I do to try and keep my insurance costs as low as possible, and one must-do tip to get it even cheaper.
Firstly, I’m on a multi-car policy with both my parents, with many insurers offering discounts when households put more than one car on a policy. Moneysavingexpert say it’s ‘not always the cheapest option’ but we found it to work well for us.
I also have my mum and dad as named drivers on my policy, as Go Compare says: “Putting an additional driver on your policy can bring your premiums down, if they’re experienced. Always be honest about who the main driver is though, or you’ll invalidate your cover.”
Premiums tend to vary based on age, sex, job and postcode, as well as where you park, and the type of car being insured too. Working from home meant I could limit my annual mileage, so I’ve set mine to 5,000 a year. Fewer miles means you’re a lower risk for insurers, so cheaper to insure, according to Go Compare.
Other ways I shave money off my insurance is by paying annually, rather than monthly to avoid interest costs. MoneySuperMarket data showed that an average motorist can save more than £200 by paying annually, with some drivers, such as 17 to 24-year-olds, looking at much larger savings because their premiums are so high.
Compare the Market added: “Paying your car insurance premium in one go, on an annual basis, is the cheapest way to do it. This is because you won’t have to worry about any interest being added to the amount. You also won’t have to think about it again for the next 12 months.
“Unfortunately, not everyone is in a financial position to be able to pay for their car insurance annually. If you can’t afford to pay in one lump sum, then the majority of insurance providers offer the option to pay in monthly instalments. But monthly payments also come with interest payments.”
I’m in the fortunate position where I can pay off the car insurance in one lump sum. I do this by putting what I would pay monthly away throughout the year into a savings account.
So, while my personal quote was £341 for comprehensive cover this year, the whole bill, including both my parents' cars, was £806.27 - but even still, I managed to get an extra £51 knocked off the cost without changing anything on the policy.
All I did was phone up the insurers and ask if there were any additional discounts that could be applied to the account, because if you don’t ask, you don’t get.
And the team on the phone were able to apply a £20 discount to my policy, and £15 each to both of my parents' cars, taking our total down to £755.27.
I wasn’t even on the phone for 20 minutes after confirming policy details. I’ve now been with Elephant for six years and they granted a discount as a ‘loyalty’ thank you, but it’s always worth calling your insurers and asking, no matter how long you’ve been with them.
Elephant’s website says: “At Elephant we work hard to give people what they want. We will try to offer you a cheaper car insurance quote but at the same time maintain the high quality service that our customers deserve.”
