When you buy a new car, there’s a lot to think about and budget for. As well as fuel, tax, and ongoing maintenance costs, you’ll need to consider car cover too. Here, comparison site mustard.co.uk share tips that take the hassle out of car buying, and offer advice on how to get cheap car insurance in the UK.
Think about the type of car you need
It’s easy to get carried away and end up with a car with more bells and whistles than you know what to do with. But while it’s always fun to have gadgets at your disposal, it usually means spending more than you really want to.
Before you start going your car search, think carefully about what you actually need. For instance, if you only need a car for running errands, do you really need a 3 litre SUV or would a nippier, cheaper car be a wiser (more economical) choice?
Consider the car’s insurance group
All cars made for the UK market belong to one of 50 insurance groups, the lower the group number, the cheaper your premium. Groups are based on various factors, for example:
- The value of the car
- Cost of replacement parts, repairs and labour
- Safety and security
- Performance
Bear in mind that the car’s specification also affects the insurance group. It means that two cars of the same model can actually be in slightly different groups if one has a higher specification.
Unsurprisingly, cars in low insurance groups are particularly popular with young drivers, including the:
- Renault Clio
- Volkswagen Up
- Kia Picanto
- Ford Fiesta
- Fiat 500
Factor in ongoing costs
Choosing a car in a low insurance group will help keep car insurance premiums down but it’s not the only ongoing cost you’ll have to factor in. You’ll also need to consider fuel, servicing, maintenance, and car tax — or vehicle excise duty as it’s officially known.
If you’re buying from a dealership, many will offer servicing plans which are worth considering and can help you keep on top of issues before they become expensive problems. Don’t forget that if your car is more than three years old, it will also need an annual MOT.
Choose the right car insurance
In the past, third party car insurance was often the cheapest option, but that’s not always the case anymore and comprehensive cover can often be cheaper.
This is because over the years, insurers noticed that third party policyholders made more expensive claims compared to those with comprehensive cover. Premiums then changed to reflect this. With that in mind, it’s important to compare all types of policy rather than assume third party plans will be the cheapest.
As well as the level of cover, think about policy features. Most insurers will offer a host of optional extras for a fee but consider what you need carefully. For example, European cover is great if you’re likely to drive abroad but it’s pretty pointless if you don’t.
Similarly, check other financial products you subscribe to. For instance, some bank accounts include car breakdown and personal possessions cover. So, check what you already have so you don’t end up paying for something twice.
Compare quotes for the cheapest car insurance deals
There’s no getting away from the fact that car insurance is going to be one of your biggest ongoing expenses. The good news, is that there are lots of little things you can do to keep that expense as low as possible, including:
- Paying for your policy in one go — this means you’ll avoid paying hefty interest charges.
- Increasing your voluntary excess — the amount should still be affordable because if you can’t pay it, you won’t be able to proceed with a claim.
- Choosing a telematics policy — if you’re under 25, telematics insurance can save you money by basing your premium on the way you drive rather than industry statistics.
- Adding a named driver — including another driver on your policy suggests that you’ll spend less time behind the wheel which can shave a little off your premium, especially if the named driver is more experienced.
- Investing in car security — the harder your car is to steal or damage, the more you can save. If parking in a garage or private driveway isn’t an option, it could be worth upgrading your car’s security or buying an immobiliser.
Of course, one of the quickest and easiest ways to save money on your car insurance is to shop around. At comparison sites like mustard.co.uk, you can compare a wide range of leading insurers in just a few minutes. Plus, with mustard’s Cheapest Price Guarantee, you can be confident about getting the car cover you need without paying over the odds.