Searches for saving on car insurance have spiked by 92% in the last month and it’s no surprise as fuel prices are going through the roof. Drivers will still continue to battle high prices, with the petrol averaging 167.3p per litre, even after fuel duty being cut by 5p. Tradesure Insurance Services have selected some tips and tricks to help those that are looking to save some money:
Go electric
Recent data from Tradesure Insurance Services has found that 2021 has been the most successful year in history for electric vehicle uptake as more new battery electric vehicles were registered than over the previous five years combined.
As petrol prices have increased by 30p in the last year, searches for the cost of charging an electric vehicle (EV) have risen by 270%, indicating people are seriously considering the switch.
“The rise in EV car sales lines up nicely with the fact that more cities up and down the UK have plans to implement low emission zones over the coming months, which means that drivers will see more potential savings when making their daily commute”, commented Chris Butterworth, a sustainability-driven design technologist and strategist at Yard.
Installing a home charger is usually cheaper than using public chargers. However, as home charging isn’t possible for everyone, another option is using free charging points – one in five of the UK’s charging points is free.
When it comes to insurance, Andy McDonald, Underwriting and Product Development Manager at Tradesure Insurance, said:
“Insuring electric vehicles is becoming easier and less expensive, as insurers adapt to changes in the car insurance market. It takes time for the insurance industry to adjust for newly introduced technologies as, like all things, only time can tell what the true risks are.”
Give an accurate mileage figure
Your insurance policy requires you to estimate the number of miles your vehicle will travel. Your insurance cost will quickly increase if you overestimate your mileage, so doing this as accurately as possible can help you save money.
According to Andy McDonald, “You need to estimate your mileage as accurately as possible to make sure your insurance cover is appropriate. You can estimate this easily by looking at your last couple of MOT certificates – the odometer readings will let you work out the mileage you did over the previous 12 months.”
Pay for your insurance in full
While it may not be an option for everyone, you’ll save money overall since you won’t have to pay interest if you can pay for your insurance policy in full rather than monthly. This can save you anywhere from 5 to 10% depending on the finance options you are offered.
Consider investing in used cars
With a shortage of new models in the second quarter of 2021, second-hand car sales rose by 108%, a growth of 6.6% on the pre-pandemic figures in 2019.
New cars will continue to be in short supply in the first half of 2022 as a result. Waiting lists for new vehicles are still over 12 months long in some cases.
This led to a massive rise in sales of older used cars throughout 2021, with only 12.7% of all vehicles sold having been made within the last three years, the lowest number on record.
With so many drivers pushed to the second-hand car market, many people are considering selling their car. This can be an unexpected way to make some good money.
“The used car market is absolutely booming right now and isn’t showing signs of slowing down. It’s great news for those hoping to make a decent amount on a car they want to sell, but it has pushed prices up for prospective buyers. The good news is that a decent second-hand car, well looked after, can stand you in good stead for years to come and not break the bank or depreciate steeply like a new motor.” – Andy McDonald.
While the cost of used cars has increased, buying and insuring a second-hand car is still financially preferable for many. So, whether you’re looking at the very cheapest used cars to insure or finding the ideal car for a little cheaper than you’d pay for it new, there is still much to be gained from the used car market.
Andy recommends “looking for cars that are around five years old as they are less likely to need expensive replacements at this age and look for a mileage of 80-100k.”