The surprisingly easy car insurance trick that can slash your premium by £400 a year
Telling your insurer when you have access to another vehicle - whether it’s your partner’s or a work car - could cut your premium by £398 a year
MOTORISTS can cut their insurance bill by almost £400 a year on average by doing just one simple thing when applying for a new policy or renewing their existing deal.
Drivers often assume that by admitting they have access to an alternative car, such as their partner’s or a work vehicle, it will increase their premium costs - but it’s often the complete opposite.
The average premium for drivers who do not have access to another car is £1,377 a year, compared to an annual bill of £979 for those who do, according to data from Confused.com.
This means motorists are missing out on a potential saving of £398 a year.
Amanda Stretton, motoring editor at Confused.com, said: “One of the checklist items when insurers are trying to calculate a driver’s car insurance premium is whether or not they have access to another vehicle, such as their partner’s car or a work car.
“Some drivers may assume that admitting this will increase the cost of their car insurance, but in many cases the opposite is true.
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“Having another car available to you statistically reduces the amount of time you will spend driving the vehicle you are looking to insure, therefore reducing the chance you will make a claim.”
But drivers need to remain honest as providing inaccurate details is a serious offence which can result in fines, a ban from driving or a criminal record.
Yesterday, Comparethemarket.com warned that the average car insurance policy could hit an average of £800 a year next month.
HOW TO CUT YOUR INSURANCE COSTS
HERE'S how drivers can avoid big increases:
NEVER autorenew. Rolling over your policy with your insuer means you'll pay more than you need to.
Shop around for the best deal using a comparison website and challenge your existing provider to match the best deal you find.
ADD an extra driver to your policy.
It is illegal to claim someone is a main driver when the're not, but adding a secondary driver can save you money without breaking the law.
Ideally the second driver would be someone with a clear driving licence and good no-claims history.
PAY your premium in full. If you can afford to stump up the cash outright.
Insurers usually whack on a hefty interest charge for monthly repayments so you can make a significant saving by paying upfront.
The warning comes as the rate of insurance premium tax (IPT) goes up from ten per cent to 12 per cent today - adding around £15 per year onto the average motor policy.
It will also apply to home buildings, contents cover, pet insurance, mobile phone cover and private medical insurance – costing households more than £100 a year.
The rising cost of car insurance has been blamed on the increase in IPT and changes to the way compensation is calculated.
In February, the lord chancellor, Liz Truss, announced the increase and at the time experts said it could add around £75 year to car insurance bills.
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