I’m about six weeks away from my car insurance policy expiring. Presently, I’m with Diamond (part of Admiral Insurance), and haven’t yet had their renewal quote. But I’m already shopping around to see if I can get it cheaper elsewhere.
I’ve not claimed this year, so I should have one year’s no claims bonus. And I’m not a brand new driver any more. Hopefully, the combination of these factors will mean that I can simply renew my car insurance with Diamond to get the best deal, but I’m keeping my options open.
I did a quick price comparison on Confused.com, to see what other insurers could offer. Admiral Insurance itself came top at under £550, which is around £150 cheaper than Diamond was last year. There were a few others under £600, although the quotes will expire before my renewal date. Still, it’s good to get an idea of what’s out there.
I also got a car insurance quote from LV=, after receiving an email from my trade union with an ‘exclusive discount’. Their quote was almost £2000, which, for a car that is worth less than £4000, is ridiculous. Especially when another firm can offer similar cover for around a quarter of the price.
Whilst it’s a pain to have to research new car insurance policies each year, you usually have to be a new customer to get the best deal. Insurance companies presumably make most of their money from those who auto-renew every year, and don’t shop around. It is time consuming getting new quotes, but it can be worth it.
There’s currently a small, circular black box in my car.
It’s a piece of electrical equipment that my car insurance company (Diamond, part of Admiral Insurance) sent to me, that connects to the 12-volt cigarette lighter port on the console. I’m to keep it plugged in while I drive for the next three months, and then return it.
The device will record how I drive, presumably using accelerometers, to make an assessment as to how risky of a driver I am. If I drive safely, breaking slowly and softly and not accelerating hard, and avoid driving too much at night, then I should get around 20% knocked off my insurance premiums when I come to renew in the autumn. And as I’ve been a fully qualified driver for less than a year, a 20% discount equates to quite a big saving – about £150 based on this year’s premium.
The black box was sent to me free of charge, and, provided I return it on time, it won’t have cost me anything. The only risk is that if my insurance company thinks I’m a careless driver, that my premiums could go up instead (only around 80% of customers experience a reduction in premiums). But I think I’m a reasonably good driver – I tend to value fuel economy over speed – and I only brake hard if I have to.
For young drivers, so-called ‘telematics’ insurance policies are increasingly popular as they’re sometimes the only way that teenagers can afford to drive. InsureTheBox is one such firm – their black box is professionally fitted (presumably taking data from the car’s ODB2 port), but comes with additional benefits. A driver who was left unconscious following an accident was saved because his insurance company notified the emergency services.
For now, I’m just using this little black box for three months. It comes with a USB port, which is handy as I had to unplug my existing car USB adaptor to be able to use it. Also, it’s currently stuck to my car using gaffer tape as the provided sticky pads did not want to stick to the bumpy plastic panels of my Nissan. It fell off literally seconds after I took the photo above.
My car insurance renewal is in September so we’ll see what effect this has nearer the time.
Having bought a car at the weekend, I also needed to arrange car insurance. The law in Britain now requires all cars that are used on public roads to have a valid insurance policy; if you don’t, then you must park the car off-road and submit a SORN. If your car is found on a public road, parked or moving, then you can be fined. So I needed to have a policy in place before I would be able to drive the car away.
Like many things, buying car insurance can be simple and quick, but if you’re prepared to put some effort in, you can bring your premiums down significantly. I can wholeheartedly recommend the advice on MoneySavingExpert.com which gives some tips on how to reduce your premiums by tweaking the information you provide. I would advise you to read the whole article, but here are the things I tried that worked for me.
1. Trying multiple price comparison web sites
It’s hard to avoid the various price comparison web sites that advertise nowadays. Whether it’s the one with the meerkats, talking robots or annoying opera singer, these sites are well-advertised. They work by taking your details, and obtaining quotes from a range of insurers on your behalf, which are then ranked to show you the cheapest. The sites make their money from the referral fees that insurers pay when you take up a policy. Considering how much these sites advertise, they must make a lot of money from these referral fees.
It’s worth trying multiple sites, as different sites work with different insurers. I got different results from each. You can also usually get cashback if you click through to a price comparison web site from a cashback site like Quidco(referral link) or Topcashback(referral link). I got about £2 from them, just for getting a quote.
2. Go direct to insurance companies
Once I’d found the cheapest insurer – and the three comparison sites I tried all gave the same company – I also tried to get a cheaper quote by visiting their site directly. Again, going via a cashback site may net you cashback as well. Remember those referral fees? Cashback sites pay those to you.
It’s also worth checking Aviva and Direct Line, who do not advertise their policies on price comparison web sites. As it happens, both gave me unaffordable quotes that were nearly double the cheapest that I could find, but, worth a try.
3. Tweak your job description
I have a rather unique job title of ‘Student Recruitment and Data Officer’, which isn’t on the selection lists that insurers ask for. Originally I put it through as ‘Recruitment Consultant’ working in state education, but I found changing it to ‘Administrative Officer’ in the university sector lowered my premiums significantly (by about 20% in my case). As long as the title still accurately reflects your job role, you should be fine.
4. Add another driver
As Christine hasn’t passed her test yet, it was going to just be me on the car’s insurance policy. However, we found that adding another family member to the policy, as a secondary driver, reduced my quote by another 10%. To be effective, this must be someone that would realistically be likely to drive the car, and who has a good driving record with no penalty points or recent insurance claims. Adding an irresponsible or inexperienced second driver may increase premiums, but it’s worth trying.
5. Include some business use
If you think adding another driver is a bizarre way to reduce your premiums, here’s one that seemed even weirder. I will need to drive for work from time to time (I reckoned no more than 1000 miles per year) and so I included this in the policy. This means that I won’t need to arrange a hire car, so my employer also saves money too. After getting quotes with this included, I tried taking it out and stating that the car would only be for ‘leisure’ use (no commuting and no work-related activities). That actually pushed the premiums up by about 10%, so I put it back in.
Plus the things that I didn’t try
I didn’t try everything. I could have got an even cheaper policy if I had opted in to a ‘black box’ insurance policy. This involves the fitting of a recording device to your car that monitors your location and how you drive – and if you drive safely, you’ll save money. InsureTheBox is one of the better known firms that offers this (a friend works for them), but it’s available from a variety of insurers.
Sometimes, opting for third-party insurance can be cheaper, but it covers less than fully comprehensive insurance which could leave you out of pocket in the event of an accident. And, again bizarrely, sometimes comprehensive cover is cheaper than third-party because of risk factors.
And if you have another type of policy with an insurance firm (say home or travel insurance), some insurers may give you a discount if you take out more than one policy from the same firm. Our home insurance was arranged via a broker when we got our mortgage so I wasn’t able to approach them for a car insurance quote on this occasion.
In the end
As it happened, the cheapest quote I got was via Confused.com, for Diamond insurance – a company that historically only covered female drivers. Both are owned by Admiral Group, incidentally. Overall, the policy ended up being about £200/year cheaper than when I started, which isn’t bad for a couple of hours spent entering information into various web sites. Insurance for new drivers is always expensive and I’m hoping that, should I continue to drive like Captain Slow, my premiums should come down in future years.
Fortunately my parents kindly gifted us most of the money that we needed, so we were able to buy a decent-sized second hand car. After trawling the listings for local dealerships on Auto Trader, we found a local dealership with a good range of cars within our budget. We then narrowed this down to two cars, at the same price, which we took on test drives.
The first was a Hyundai i30, which was good car, and slightly newer with better equipment, but it didn’t drive so well and didn’t have as much internal space. So, we went for a 2008 Nissan Note.
It’s got a 1.4 litre petrol engine (which is fine for us) and a manual gearbox – I’m indifferent when it comes to manual or automatic but both Christine and I are/were learning in a manual car. The boot is big and there’s also plenty of legroom in the back, plus there are Isofix fixings for a child seat. It’s very much a family car, and whilst it may not be very cool or trendy, it should be very practical for us.
I’ve had a bit of time to drive it but the big test will be in a few weeks when we drive down to Staffordshire for a family wedding. I say ‘we’ – it’ll be me driving there and back as Christine still hasn’t sat her theory test yet, never mind her practical test. I may try to arrange a motorway driving lesson with my instructor before then.
After putting up with not having a car for so many years, it feels very weird to finally own one. We’ve managed to make do with public transport, but I am very much looking forward to not having to pay over the odds for taxi fares, or complicated bus and train journeys that take twice as long as driving would.
