CAR INSURANCE

Hands up, who’s tired of hearing that we’d all be able to afford houses if we’d just step away from the avocado toast? Ever noticed how a lot of old-school budgeting advice is about giving up the things that sprinkle a little joy into your day? At BetterCompare, we say ’ave another avo. Keep your coffee habit. Hold on to your hobbies. Instead, trim the fat on boring, grudge payments – like inflated car-insurance premiums. Here’s how.

01 Get on top of your credit score

When you apply for car insurance, insurers look at your credit score to check whether you’ll be able to keep up with monthly payments. The better your score, the less of a risk you seem, which means the company may offer you a better deal.

To clean up your credit score, get on top of your debt. Pay off credit cards, store accounts and loans in your name. Never been in debt? We’re sorry to wipe the smug smile off your face, but that doesn’t look too good either – you’re a wildcard. In this case, you may want to take out a cellphone contract or store account in your name, then be diligent with those bills to start building a credit history. After about six months, all this good behaviour should reflect in your score, and you can shop around for car-insurance quotes again.

02 Drive better

Slow down, Speed Racer. The longer you’ve been driving around without having an accident – and therefore not submitting claims – the lower your premium will be. This is because the insurance company considers you low risk; they reckon they’re probably not going to have to cough up much cash on your behalf since you’re such a stellar driver.

03 Choose your own excess adventure

This one’s a bit of a give and take. To save on your monthly car-insurance premium, you could opt for a higher excess. Excess is the amount that you have to pay when you make a claim. The higher your excess, the lower your monthly premium will be. This sounds great, but only because we’re generally inclined to think we’ll never be in an accident. You need to be sure that if you are, you can afford the big-daddy excess you opted for.

Hey, here’s a good idea: save up the difference between your old premium and your new lower one until you’ve got your excess amount. Pop it into a seven-day call account or similar savings vehicle, and earn some interest. It’s there if you need it, but if you don’t, you’ve started yourself a little nest egg.

04 Check up on your insured value

How much are you insuring your car for? What’s the big, ol’ lump sum your insurer will pay you if your car is stolen with no hope of recovery, or if it’s completely smushed during an Avengers battle? Your car’s value decreases every year, and it’s worth keeping an eye on this number so you’re not over-insuring. (You should also check whether it’s insured for retail, market or trade value.)

05 Shop around and compare

Unlike when we were at school, as an adult it can literally pay to do your homework. By getting at least three quotes, you’ll have a much better idea of exactly what you’re getting before you commit to an insurance policy, and you can choose the one that suits your needs and pocket best. Ka-ching!

BetterCompare uses real-time digital technology to get quotes directly from insurers, making it super easy to compare car-insurance quotes.