Drivers shave whopping £200 off car insurance with easy trick, experts find

Scottish Sun

a day ago

We've also shared other tips to lower your costs
THOUSANDS of drivers could shave hundreds of pounds off their car insurance premiums with an easy trick.
Consumer group Which? found that some motorists managed to knock over £200 off their renewal quotes simply by haggling.
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CEBPE6 car insurance renewal notification in the uk
Credit: Alamy
The watchdog said the size of some discounts raises questions about some insurers offering fair value.
Which? commissioned a survey of more than 2,000 people across the UK with car insurance, asking how, if at all, the cost of cover has changed since their last renewal.
Around six in 10 (59%) said they haggled with their insurer, with most doing so over the phone.
Three-fifths (61%) of those who contacted their insurer received a reduction to the original price offered.
The average amount motorists that pay annually for cover saved per year was £64.
Although some received much more sizeable reductions, with 5% of these people saying they were able to save more than £200 after haggling.
Overall, nearly half (49%) of drivers noticed their premium go up at their last renewal, while a quarter (27%) saw a reduction
Nearly a quarter (23%) said it had not changed and 1% did not know.
The survey also indicated that customers facing challenges at renewal – for example experiencing a difficult life event or a health condition – appear to have a different experience of haggling than those who were not.
Vulnerable customers were more likely to discuss their premium with their insurer, and these discussions led to price reductions at similar rates.
Cut car insurance costs and save money
But these customers were also more likely to have to change their policy to get the lower price and were less likely to say they found the process easy, according to Which?
With some motorists receiving such hefty discounts after haggling, Which? believes there are "serious questions" about whether the first offer from the insurer in some cases really represents fair value.
It also said that with many people renewing without discussing the price, some customers may be paying over the odds.
Sam Richardson, deputy editor of Which? Money, said: "While some people may feel daunted by haggling with their insurer, this research underlines how it is worth doing for many consumers and is likely to be one of the most effective ways to cut the cost of your renewal."
Haggle like a pro If your insurer has increased its renewal price, ask it to justify the increase. Then point out the lower prices you have found elsewhere, and ask your insurer if it can better those offers. If it is not able to provide a better quote, state that you are willing to go elsewhere. If you have been a loyal customer for many years, it could be worth mentioning this. If the insurer is not budging much on the premium but you would still like to stick with your provider, one option could be to ask for an add-on (such as breakdown cover) to be thrown in. Just make sure that it is worth it.
In 2022, rules were implemented to end a "loyalty penalty" paid by longstanding insurance customers.
Under the rules, when existing home and motor insurance customers renew their insurance policy, the price charged by the insurance provider cannot be more expensive than the price that they charge an equivalent new customer for the equivalent policy.
An Association of British Insurers (ABI) spokesperson added: "Variations between an initial online quote and a bespoke telephone offer often come down to a deeper dive into individual factors – such as your vehicle's security measures, driving habits, level of cover and choice of voluntary excess.
"We'd always recommend shopping around to secure cover that truly meets your needs, not just based on price."
Other ways to cut your car insurance premium
Pay upfront
Many insurers charge extra fees for monthly payment plans.
These can vary, but might include set-up fees, transaction charges or interest for spreading the cost over several months.
By paying annually, you can avoid these extra costs and keep more money in your pocket.
Drivers can typically save up to £59 by paying for their annual car insurance premium in one lump sum, according to Which?.
Which insurers don't charge interest?
IF you can't afford to pay your insurance upfront, there are some firms that don't charge interest on monthly payments.
Most car insurance firms charge interest on monthly payments ranging form just 5% APR all the way up to a whopping 39.11% APR.
However, NFU Mutual and Hiscox do not charge interest on monthly repayments.
Tweak your job
Certain jobs are seen as more risky than others for insurance purposes.
So making small but accurate changes to your job title can save you money.
For example, swapping your role from "chef" to "caterer" can save you £20, GoCompare found.
And changing from 'fast food delivery driver' to 'delivery driver' could save you £40.
But lying about your job could invalidate your policy, so make sure any tweaks are legitimate and accurate.
Save the date
Renewing your car insurance sooner rather than later could save you some cash.
New cover becomes more expensive the closer you get to renewal. You can buy your insurance up to 29 days before the policy start date and "lock in" the price you are quoted that day.
According to GoCompare, a typical driver can save up to £150 by buying new cover at least 26 days before their current policy ends.
Increase your excess
Your excess is what you agree to pay each time you need to make a claim on your policy.
When setting up, you can usually choose your own excess, which can be as low as £100 and as high as £500 or more.
The higher your excess, the lower your premium and vice versa. This means you could lower the cost of your insurance by agreeing to pay more if you need to make a claim.
But before you hike your excess, make sure you would be able to afford it if necessary.