Here’s how I saved over £100 on our car insurance. Think of it as a humble brag but it’s something that you can do too and start saving your own money!
GFF is not a big fan of insurance. It has its uses but I believe in self-insurance where possible (and prudent), insuring your washing machine or mobile phone is likely to be a waste of your money. However you legally need car insurance if you have a car and in our household we have two. I don’t like them but they are useful – one thing I don’t like is the multitude of costs and insurance is one of those.
Since I need insurance, my (and everyone’s) next step should be to find out what you need and the cheapest way to procure it. This is a combination of money spent and your time spent. It can be a faff trying to find out all prices and comparing them and if you can save 50p but it takes you an extra hour of your life – is it worth your while? So here’s GFF’s procurement process for car insurance.
Step 1. Create a simple spreadsheet
In this spreadsheet include columns like “source, “provider”, “premium”, “discount” and use this when you get quotes so that you can keep a track of which is your best option and to keep things simple and clear.
Step 2. Use Quidco compare
Unlike the big name comparison sites, Quidco compare includes cashback discounts meaning the referral fees are paid to you instead of that singer guy with the mustache or the mildly offensive/annoying desert rodent.
Filling out the form is a little time consuming but if you have the information at hand (car number plate, driving license details, previous accidents, NCB…) it shouldn’t take too long. Make a note of your best prices in your spreadsheet.
REMEMBER TO BE HONEST – LIE AND YOU’LL PAY LATER!
Step 3. Run some sensitivities (but don’t get bamboozled!)
I’ve found that since the Lady and I both own cars it can be cheaper for us to be joint drivers on both cars rather than named drivers on each other’s cars. What’s the bloody difference? About £50 cheaper each it seems – and I’m not making this up. Areas to check are things like allowable mileage per year, breakdown cover, legal cover, overseas cover and your voluntary excess?
How much is your voluntary excess £50, £250, £1000? Changing things like this means you can save money. I’ve found that increasing your excess by £100 saves you about £3 to £5 on your insurance. Do you feel lucky? I reckon that it’s a fairly priced trade-off. Personally I go as high as I can and save the money. I have the emergency fund to pay for nasty surprises (an extra £500 ain’t going to bankrupt me) and I reckon that they’ve worked out that the odds are balanced. The high excess might put you off claiming and if you total your car it is extra money that will cost you – and it’s an area where your insurance provider can make a bit more money out of you
Keep a record of your results and put in your spreadsheet.
Step 3. Compare 3 other Companies + your top picks from before
I choose 3 big name suppliers that have the discounts on TopCashBack or Quidco. This would be the likes of DirectLine, Aviva or Churchill. They don’t generally appear on Quidco Compare and if they do it might be cheaper to go direct.
Why 3? Because I don’t have all day, if the lowest/best price is already pretty good, then I’m unlikely to find a better deal elsewhere, after all Time = Money. Also entering your personal data can be a pain in the ass.
Once you have these three sets of prices (because you may end up with basic, plus and premium cover prices, all with different cashback amounts – like for Aviva below through Quidco) – you should know who you want to go with and what type of cover you want. Now comes the clever part:
Step 4. Call your current provider
Your car insurance provider will have probably given you a renewal quote that is a rip-off. Call them up and tell them that you are going to leave them for So&So Insurance unless they can match or beat your renewal price (including cashback) of £XXX. That will normally give you an easy yes or no. There are advantages to keeping the status quo – less paperwork for one.
Using this recently I managed to get a great price with Aviva and with a bit of tinkering, saved money about £50 on the renewal on what would have been my renewal and got £52.50 in cashback too. The same process last year for the Lady’s insurance saved us about the same. Overall it’s an over 30% saving or over £100. With Aviva, I was even able to pay monthly by credit card meaning my cash flow is better and I save even more.
It’s a relatively simple process that you can use to save money consistently on what is a relatively large outlay. We spend about £450 a year on car insurance and my brother spends over £1000 – so getting the right deal at the right price is very important. By applying this process every year, we’ve saved at least £100 every year. I’d also encourage you to sign up to Quidco and TopCashBack to avail of the cashback on offer. It’s a simple way to make your money work harder.
Please note there are affliliate links in this article. These are for your benefit and you’ll be helping me if you click through and sign-up.