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With the turn of the New Year and after the excesses of Christmas, we’re all starting to think about cutting down on our expenses. They’ll be less nights out, not so many dos and work lunches, and you’ll probably be bringing a packed lunch for those first few weeks back after the festivities.
But you’ll also need to think about cutting down on your big expenses as well as just your day to day. Whether looking for the best car insurance quote, cutting down on your energy bills or your home insurance you need to put a money saving action plan in place.
First up, sorting your car insurance. Here’s our quick guide on saving money.
Do a little shopping
Don’t simply just accept the renewal quote you’re offered for your car insurance cover. By shopping around you can potentially save over £200 on average. However, you also need to be aware that the cheapest policy isn’t always the most effective, so while looking at price you also need to look at levels of cover and make sure you’re covered for your specific needs.
Look into paying upfront
If you pay upfront for your car insurance in one go, rather than on a monthly basis, you’ll actually end up paying less. Opting for the monthly installments option may seem like a more manageable process as well as appearing cheaper, but in the long run you will end up paying more. If you can afford to pay out in one go, you should do so.
Increase your excess
Most car insurance policies include a voluntary and/or compulsory excess charge. This is basically the amount you’ll have to pay upfront in the event of a claim, before your insurer will pay out. While it may seem like a more expensive route to go down, if you agree a higher amount for your compulsory excess charge, you can actually save money on your premium. Sometimes it pays to think a little tactically.
Improve your driving
There’s nothing like being a safe driver to save you money when it comes to renewing your car insurance. If you haven’t claimed on your previous policy, you’ll get a cheaper premium when starting a new policy, as having your no claims in place immediately shows you to be a safer driver and a safer bet to insure. Another option many insurance companies are offering is telematics, whereby your driving is monitored by a “black box” installed in your car. If the data on this shows you to be a safe driver, you’ll save money down the line on your insurance.
