Money is tight and budgets are leaner than ever, as people are battling to make it to the next payday and are cutting costs wherever possible.
Some may even consider cancelling their car insurance to reduce the monthly debit orders, but this decision could have long-term financial consequences. Instead, here are five smart ways to save on your car insurance while keeping your vehicle protected from MotorHappy:
- Never miss a payment – it will cost you later
Skipping a car insurance payment doesn’t just mean you’re without cover—it also puts you at risk of policy cancellation. If your insurer cancels your policy due to non-payment, it will reflect on your record, making it harder and more expensive to get cover in the future. Insurers will ask why you were previously cancelled, and this could result in higher premiums when you try to reinsure.
Pro tip: If you’re struggling to make a payment, reach out to your insurer before missing it. Many providers offer flexible solutions to help you stay covered.
- Minimise claims to keep your premiums low
Your car insurance premium is directly affected by your claims history. The more claims you submit, the higher your risk profile, which results in increased premiums. With insurers now using digital records to track claims, it’s crucial to only claim when absolutely necessary.
Pro tip: For minor repairs, consider paying out of pocket instead of claiming, especially if it won’t cost you a significant amount. This helps maintain a clean claims record and keeps your premiums steady.
- Check the excess and policy limits
One of the biggest mistakes motorists make is focusing only on the monthly premium while ignoring their excess and policy restrictions. A low premium might seem appealing, but a high excess could leave you out of pocket when you need to claim.
Pro tip: Always check the excess amount you’ll need to pay in case of a claim. Read the fine print to understand any exclusions or limitations that could affect your payout.
- Adjust your excess to lower your monthly premium
If you’re looking to reduce your monthly insurance cost, consider increasing your voluntary excess—the amount you agree to pay when making a claim. The higher the excess, the lower your monthly premium. However, make sure you can afford the excess amount in case of an accident.
Pro tip: Speak to your broker or insurer to find the right balance between an affordable premium and a manageable excess.
- Find affordable car insurance quotes
Everyone wants to save money and spend it where it matters most. However, cutting back on car insurance isn’t always the best move. By understanding your policy’s limits and conditions, you can find smarter ways to save—especially when it’s time to renew. Always shop around for new quotes each year to ensure you’re getting the best deal.
