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Can We Really Save Money on Car Insurance?

Can We Really Save Money on Car Insurance?

If you want to drive a car on UK roadways and motorways then by law you are required to have car insurance. Car insurance is mandatory to drive here, and in many other countries as well.

When you buy a car, one thing you need to take into account and budget for each month, besides petrol, maintenance, and repairs, is the cost of the insurance on the vehicle. And this insurance expense may not be cheap.

According to the Association of British Insurers, the average cost to insure a car went down in 2018, and was £477 a year.

Of course this is just an average, if you look at the cost for young drivers, this figure soars considerably.

The Assistant Director, Head of General Insurance Policy at the ABO, Mark Shepherd said, “This annual fall is good news for millions of UK drivers after a few years of rising premiums, that reflected, in part, rising vehicle repair costs, a weaker pound, and uncertainty around the reform of personal injury compensation. Implementing the provisions of the Civil Liability Act will be crucial to delivering a fairer compensation system for claimants and continued competitive premiums for motorists. Despite reports suggesting premiums are going up, what we actually saw was an overall fall in the average motor premium paid in 2018, with the seasonal rise in quarter four premiums lower than normal.”

While this reads and sounds good on the surface, if you are a young driver, or a new driver, car insurance can cost you more than the value of your car!

If your insurance has a premium of £1200 a year, that adds another £100 a month to the cost of operating the car.

Not cheap.

So, are there really ways to save money on car insurance….yes there are.

The first two (2) ways to save are big ones:

* Shop around: It should go without saying, but we will say it anyway, shop around with different insurers, get quotes, even use comparison web sites to get the best price on your car insurance.

There can be reductions one insurer may offer over another, and the differences in pricing can vary. So shop around.

* Chose the right car: Picking and buying the right car is also very important. Insurance premiums will vary according to make and models of cars, and if you buy an expensive model car, or one that is known to be expensive to repair, this will be reflected in your costs.

Another way to save, which may not be for everyone:

* Pay upfront: By paying your full annual premium upfront you can save a couple of hundred pounds due to the fees and charges of paying monthly.

In some instances it can be cheaper to take out a loan, depending on the interest rate, and pay the insurance upfront, and pay the loan payments.

Other ways to save are:

* Your mileage: Don’t just guess at the number of miles you drive in a year, know the figure, and try to keep your mileage down and not go over what you state.

The more miles you drive each year, the higher your premiums can be.

Underestimating can be just as bad as it ay invalidate your policy should you need to file a claim.

* Raise your excess: This can be tricky to do, and you need to carefully think this one through.

The higher your excess is, the lower your premiums can be, however, you need to be able to cover the excess should you need to file a claim and have your car repaired.

* Technology and “black boxes”: Many insurers offer discounts if you have your car fitted with a black box or telematic system installed.

These systems give immediate feedback on how you are driving, and can save you money if you are a good driver, but they can cost you money if you are not a good driver.

Some insurers offer discounts if you have and use a dashcam in your vehicle. Again, the technology can provide feedback and also show how you drive, and who may be at fault should you be involved in an accident.

There are other ways to save as well:

* Multi-car discounts

* Choosing the correct job title, some job titles receive lower insurance premiums.

* Adding a second driver on your policy, someone who is older and has a good driving record.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.