What To Do When Your Car Insurance Premiums Go Through The Roof

Love it or hate it, insurance is a necessary expense for all motorists today. You can’t drive a car on a public road without having the correct level of insurance cover on your vehicle.

The thing about car insurance is that prices always change, especially on a daily basis. And the sad fact is that your insurance premiums usually end up getting higher each year.

So, what happens if you get a renewal letter, and you have to pay an exorbitant amount for your insurance? Well, there are a few options open to you, some of which I will explain to you below.

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Pay the premium

If you want to lead a hassle-free life, you could just agree to pay the increased insurance premium. In the UK, insurance premium tax has gone up a few percent. That means everyone’s insurance will rise, including those that have car cover.

You may not agree with it, but you might feel you’ve no choice but to pay the increased premium. One positive thing to note is that you can spread the cost of your insurance over monthly instalments. That way, the extra price you must pay is easier to swallow.

Get quotes from other insurers

If you’ve got some time on your hands, you could put it to good use by getting quotes from other firms. I tend to do that each year as there is no sense in staying loyal to a particular company.

When comparing quotes, make sure you get the same benefits and level of cover with other policies. You’ll also need to keep an eye on the excess amounts. Some insurers may charge you a higher excess if you need to make a claim.

Sell your car

Have you shopped around for quotes and not found any better ones? If that’s the case, the car you drive could be to blame.

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Sometimes a particular model might be more of an insurance risk. For example, it might be more desirable for thieves.

I once had to sell my car when that same scenario happened to me. I just couldn’t justify paying the extra amount! In a twist of irony, the same car was half the price to insure the following year. Still, one must never regret what one does in life, and I don’t regret selling my car. That’s because I replaced it with a better one!

Add your spouse to your insurance policy

You might not think it, but adding other drivers to your policy can drive the premium down. It’s a well-known fact that spouses can lower insurance costs for one reason. The chances of making a claim are lower because you “share” the car with your partner!

It’s a strategy that often pays off for people, even if their spouses seldom drive their vehicles. I recommend finding out how much you could save by following that approach.

Move to a different area

A rather extreme way to save on car insurance fees is to move house! You may find that your area is now a car crime hotspot. Even moving just a couple of streets away could lower your premiums.

Have you tried any of the above tactics? If so, let us know how you got on. See you soon!

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