I slashed my car insurance by £200 a year after following Martin Lewis’ tip – how you can too
A MARTIN Lewis fan has revealed how they slashed their car insurance by £200 a year thanks to a clever tip.
The fan followed the MoneySavingExpert’s (MSE) advice and explained how they made the saving in this weeks newsletter.
Martin Lewis fan Deborah said she was quoted £453 to renew her car insurance – up £102 on the previous year.
But using MSE’s car insurance comparison tool, she found that she could get the same cover for £250 – a saving of more than £200 a year.
Deborah told MSE: “Next year I will try for quotes earlier, in the sweet spot, rather than putting it off.”
Depending on when exactly you renew your car insurance policy, you could save hundreds of pounds.
It comes just weeks after Martin Lewis said premiums have spiked and drivers should check if they can lock in a cheaper rate now.
Insurers have been hit hard by rising parts and labour costs which they have started passing on to consumers.
In February, the Association of British Insurers, the trade body for insurers, said the average price paid for motor insurance rose by 8% in the fourth quarter of 2022.
It added the average premium paid for a private motor was £470.
But if you’re worried about sky-high premiums, there are some tips you can use to save costs.
How else to cut the cost of car insurance
Shopping around for car insurance is crucial to make sure you’re not overpaying.
Under new rules, insurers are no longer allowed to reserve their best deals for new customers while hiking rates for existing users.
But that doesn’t mean you won’t be able to find a cheaper premium elsewhere
Comparison websites such as CompareTheMarket and GoCompare can help you look – it’s worth checking several sites as they each work with different insurers and will have different prices.
Check cashback sites to see if you could get money back on your premium.
When we checked, Topcashback offered up to £35 on purchases through GoCompare and up to £20 if you buy from The AA.
Small tweaks on your policy can also help you cut costs.
Adjusting your job title could reduce your premium as some roles are deemed as being riskier – although, it still needs to be an accurate description of what you do.
Recent research found that job titles with the most expensive premiums include fast food delivery driver, taxi driver and – surprisingly – librarian.
Tweaking your job title from “chef” to “caterer” or from “journalist” to “writer” are acceptable ways to describe your profession without breaking any rules, and could save you money.
Adding an additional driver can bring down your costs too – this particularly works for younger drivers who can add a parent to their policy.
The additional driver must be a “named driver” though – it is important that the policy is in the name of the person who most frequently drives the car.
Otherwise this is known as fronting, which is against the law and could get you an unlimited fine, six penalty points and a criminal record.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk