Car Insurance Renewal CostsPosted on Jul 24, 2023
Car insurance renewal costs are the latest household bill to go through the roof, according to The Guardian. The Office for National Statistics (ONS) estimates the price of car insurance to have gone up by over 43% in the last 12 months!
Angry motorists are complaining that prices are skyrocketing when looking to renew their policy. The average price paid for motor insurance in 2023 has increased by 16%, and this is likely to rise further over the coming months.
As the increased cost of car insurance is becoming increasingly challenging to squeeze into our budgets, the ONS said the most notable way to cut the cost is by reducing add-ons from your policy.
With car insurance prices speeding away from us, shopping around and changing your insurance provider are good options to try and save some money. Direct Line, the insurance giant, is even encouraging their customers to shop around before renewing their insurance each year.
If your motor insurance is up for renewal soon, here are 3 steps you can take to make sure you’re not paying over the odds…
1) Shop around
Don’t simply accept your current insurer’s autorenewal quote. Visit sites such as Money Supermarket and Compare the Market and compare the insurance quotes available to you for the best price and cover.
2) Add a named driver to your policy
Adding an older, more experienced driver to your policy may bring your price down. This is because your insurance company will think the driving is shared between yourself and your added driver, and assume you’ll be spending less time in the driver’s seat.
Make sure you put the driver who will be behind the wheel the most as the main driver. It is against the law to knowingly put the more experienced driver as the main driver in a bid to lower the cost when, in reality, you’ll be doing the majority of the driving. Put yourself as the main driver if you’ll be driving the vehicle the most and this will also allow you to build up your no claims which will lead to a discount in the future.
3) Pay annually
Paying for your car insurance annually is usually cheaper than paying in monthly installments. If you pay monthly, interest is added to your repayments, and you’ll be paying more than you need to over the course of your policy.
If you can’t afford to pay for your car insurance in one lump sum payment, a Penny Post loan could help. With great rates from just 2.9%, a Penny Post loan will allow you to spread the cost of your insurance with affordable repayments straight from your pay, without paying extra interest to your insurance company. With rates cheaper than most credit cards, and with save as you borrow, you’ll have a lump sum when you’ve repaid your loan too.
Want to know more about our new loans, click here!