How much does car insurance cost?
Commonly regarded as a 'grudge' purchase, you can't legally drive
without car insurance - but it's no small financial commitment.
How much you'll pay depends on a range of factors - from your age,
the type of vehicle you have and where you live to your marital
status and past driving history.
Several companies track prices within car insurance pricing and
regularly publish trends - in the form of indices. Differing
calculation methods and dates of publication can mean that the
average figures don't always align.
While this range of figures outlines what your 'average' person
might pay (or be quoted), in real life, there isn't an 'average'
car insurance customer. It's personally priced - meaning that
according to your personal circumstances, you may find that you pay
a lot more or substantially less than the figures cited above
Source Index/survey Premium
Premium is average of Date
AA British Insurance Premium Index
610 cheapest prices quoted to customers
Q4 2018
Association of British Insurers Premium tracker
466 premiums paid
Q1 2019
Compare the market Premium Drivers index
736 cheapest prices quoted to
customers Q1 2019
Confused.com Car insurance price index
762 cheapest prices quoted to
customers Q1 2019
Car insurance UK Price Index Money supermarket
468 cheapest prices quoted to
customers Q1 2019
Which? General Public customer survey
432 premiums paid
Nov-18
Video: how to get the right car insurance
Watch our short video to find out how to get the right car
insurance for your needs.
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15 ways to get cheap car insurance
You don't have to simply accept the first quote you get from an
insurer - there are plenty of legal tactics you can use to cut the
cost of your cover.
1. It's cheaper to pay annually
Insurers will give you the option to pay for your cover in two ways
- as a lump sum or in monthly installments. While paying monthly
might seem like a sensible way of spreading the cost, you may
actually be charged hundreds more over the year.
By paying in monthly installments you are, in effect, taking on a
loan from your insurer. Most will charge you interest for it, and
rates aren't cheap. In our last survey of insurers, the average
amount of interest payable was 25% APR, with some charging as much
as 36% APR.
If paying monthly is your only real option, be sure when shopping
around to compare the insurers' monthly, rather than annual,
premiums.
2. Your credit rating and insurance
If get a quote from an insurer, they will run a 'soft' search on
your credit record. This is to verify the accuracy of your personal
information (such as name and address) and won't impact your credit
score or be visible to other companies.
If you then apply for insurance and opt to pay monthly, your
insurer may then run a 'hard' credit check.
This information will help it decide whether to actually provide
you the credit. Like any other credit application, this will be
externally visible in your record and can affect how other lenders
treat you.
While this won't affect your premium, a bad credit score may stop
you from being able to pay monthly, or insurers may ask you to pay
a deposit first.
Find out more in our guide to credit reports: all you need to know.
3. Pick the right job title
What's the difference between a 'kitchen worker' and a 'chef', a
'writer' and a 'journalist', or a 'housewife' and a 'homemaker'? In
practice, your occupation may be aptly described by any two of
these - but the one you choose could make a difference with your
insurer.
Insurers look at many factors when calculating the cost of covering
you, and how you describe what you do for a living makes a
difference.
If you've got a choice of different labels when entering your
occupation, check if there's a difference in impact to your
premium.
However, remember that you should never lie about your job. Don't
say you're a butche
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