Insure your car for £99!

As one insurer launches an astonishing deal for some drivers, we look at how to keep your premium costs as low as possible!

Sorting out car insurance can be a right pain. There are dozens of questions to answer, and it always seems to take me ages, probably not helped by the fact I can never remember my registration number so end up having to go outside to write it down.

What’s more, it’s not exactly the cheapest thing in the world, particularly if you are male and haven't been driving for that long.

Insurance for £99!

However, one new car insurance deal is staggering it’s so cheap. If you buy a new Mini Convertible this summer, Mini Financial Services will provide a year’s insurance for just £99.

You’ll have to buy before the end of September, and be aged between 30 and 80. If you are between 25 and 29 it will cost £149 and for drivers aged 21 to 24 it will cost £199, which still strikes me as an awesome deal.

What’s more the policy guarantees that any repairs will be carried out at a Mini approved bodyshop, using genuine Mini parts.

However, not all of us are looking to buy a convertible Mini this summer. Thankfully there are plenty of ways we can keep our car insurance premiums to a minimum too.

Stop being loyal

When I first passed my test my parents sorted out the insurance, and come the second year they simply called up to renew. The cost had actually gone up, yet they stuck to the same provider.

This is madness!

You have to shop around to get the best deal – don’t expect to get anything for being loyal and staying put. We have our own car insurance quote engine which you can use to compare hundreds of different quotes in seconds. Don't be lazy, as it can cost you a small fortune.

Get safe

The job of an insurance firm is of course to avoid having to pay out on claims as much as possible. So they are far more likely to look on you kindly if your car is sufficiently secure that the chances of it being stolen or damaged are pretty remote.

There are lots of things you can do to help ensure you appear as risk-free as possible, from parking your car somewhere safe like in a garage or private driveway, to adding some form of security device, and even driving as little as possible (the less time you’re on the road, the less likely you are to be involved in an accident and therefore need to claim on your policy).

Ignore Westwood

If you are a fan of Pimp My Ride, then you might want to add a banging sound system or some sick lights to your car, perhaps even add a spoiler (that’s how the kids say it, right?).

While this may look great to your friends, it can seriously add to your policy cost.

Would you claim for a scratch?

Related goal

Slash your insurance costs

If you’re feeling the pinch, these ways of saving money on your insurance will help.

Do this goal

One of the things that can really affect the size of your premiums, no matter what form of insurance you are looking at, is the size of the excess. This is the amount of the claim that you would have to pay for yourself.

Unsurprisingly, the higher the excess, the cheaper your policy will be. So if you don’t reckon it’s worth claiming when the job required is fairly small, as you’ll lose your no-claims bonus and guarantee higher future premiums, it makes sense to set your excess a bit higher.

Get qualified

When I passed my test, I was so relieved to have it out of the way (and, frankly, excited about getting out on the road on my own) I ditched plans to take my PassPlus test. This was a particularly stupid move.

PassPlus is a course from the Driving Standards Agency for drivers who have passed their test in the last 12 months, to help them get more confident on the road. They are the cars you see with the 'P' plates on the vehicle, rather than the good old learner 'L' plates. The course covers things like driving at night and driving on motorways, and can shave up to 30% off your car insurance cost!

What sort of cover?

Of course, the type of car insurance you go for can also vary. If you want to be covered for everything then you will want Fully Comprehensive cover.

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As the name suggests, this is the widest form of cover you can get and covers you for everything. However, you can save money by going for Third Party cover, or Third Party, Fire and Theft.

Obviously, the reason they are cheaper is that you have nowhere near as much cover. Third Party covers you for any damage you cause to another person’s vehicle and protection for your passengers, but if the accident is your fault, you'll have to cover the cost of the repairs to your own vehicle. Third Party, Fire and Theft is exactly the same but with added cover in case your care is stolen or set on fire.

You’ll have to decide for yourself whether you want to take that gamble.

Pay in one go

This has always annoyed me about car insurance. You can choose to pay your premium on a monthly basis, but it will add a fair old chunk to the final cost, sometimes up to 20%!

If you think you’ll struggle to stump up for the whole premium in one go then you might like to consider one of these credit cards, which give you a year free of interest on purchases.

Get the family involved

When I first passed my test, my insurance quote wasn't horrendously bad as my Dad was also on the policy, as he would be driving the car during the week. However, if you’re going to do this, keep it all above board and don’t be tempted by Fronting, where you would name the older driver as the main driver, but in reality the younger driver is the only driver.

This lie would not only invalidate your insurance, but also end up costing you a small fortune.

Insurers are also likely to charge less for husband-and-wife policies as well. The thinking goes that the male driver (because it’s always us men that are the dangerous ones apparently) will drive more sensibly when the wife is in the car. Hmmm....