Brace yourself, car insurance premiums could soar by up to £1,000 for drivers under 25, £300 for older motorists and £75 for the average car owner…
You could petition your local MP to stop it, but unless the Government does a major U-turn before Monday 20th March 2017, you’ll pay a higher premium – because of changes to the way that compensation is calculated for injury claims. Victims will get more money in a move that the Association of British Insurers called the decision ‘crazy’ and ‘reckless in the extreme’.
The new ruling from the Lord Chancellor Elizabeth Truss affects up to 36 million people and businesses, you included, plus Aviva will take a £385 million hit and Admiral Insurance will see a £100 million dent in profits. Call your insurance provider to find out exactly how this changes your insurance policy.
But the bad news doesn’t stop there. Remember, the DVLA’s expensive new car tax rules come into effect from Saturday 1st April 2017 – giving your wallet a double whammy of expenses to pay this spring.
How to minimise the damage
Car insurance premiums have never been so high in the UK. Driving without car insurance is a crime, but paying as little as possible isn’t – here’s how to get the cheapest rate…
Let price comparison websites like ‘moneysupermarket.com’, ‘gocompare.com’ or ‘biba.org.uk’ do the maths for you, showing you which insurer is cheapest at a glance – the latter belongs to the British Insurance Brokers’ Association. It’s worth going directly to the insurers that aren’t listed as well, to make sure you don’t miss out on a good deal.
Pay up front
Those of you who can afford to buy your car insurance cover up front, should, because it works out cheaper than paying monthly by direct debit – without those pesky insurance charges.
Install a black box
So you’re a safe driver? Prove it to your insurer and pay less car insurance, if you’re under 26, by installing a black box system – to monitor your speed, acceleration, breaking and whether you’re driving at high risk times, like early morning. Churchill, for example, will offer you a car insurance premium based on how you behave behind the wheel, without stereotyping young drivers.
Stop pimping your ride
Those spoilers, huge exhausts and LED lights that boy racers are oh-so fond of will only increase your car insurance. Especially in the first few years after passing your test. So steer clear of car modifications.
Consider pay-as-you-go car insurance
Not getting the most out of your car insurance? Only pay for the miles you drive with polices from the likes of Cuvva.
Opt for a pension with Aviva
Aviva say that people who regularly save for retirement are less likely to have an accident or claim for a stolen vehicle – so they’re putting their money where their mouth is and offering you cheaper insurance. Saving with another pension provider? You won’t get the discount, but call Aviva Insurance’s customer service team today to see if they can work a deal out for you.