The cost of owning a car could be about to get much more expensive in 2024, with new car tax changes unveiled from April and insurance premiums set to surge by 10 percent.
Rising maintenance prices, coupled with the cost of living crisis, are enough for hundreds of motorists to consider ditching their cars altogether this year.
But for those who rely upon having a vehicle for day-to-day life, axing their motor is not a viable option.
To be able to afford the increasing costs of owning a car, as well as the rising cost of living, drivers across the country are searching for ways they can safely cut costs.
Car experts from Motor Match, one of the UK’s leading family owned car dealer groups, have offered their tips on how you can save money on tax insurance this year.
They said: “The past two years have been a challenge for the motor insurance sector, with factors like inflation and post pandemic driving habits contributing to consecutive losses.
“This is looking like the most challenging year since 2010 for car insurance companies, despite a 25 percent rise in consumer premiums.”
Experts at EY have predicted that in response to industry adjustments amid inflation, insurance premiums will increase by 10 percent in 2024. Fleets, particularly those with electric vehicles, are also facing higher premiums.
To cost effectively combat rising premiums, it is important that you do your research.
“The type of car you drive affects insurance premiums. Larger, more powerful cars are more expensive to insure so picking the right level of cover and understanding the different levels of coverage to suit your needs can also potentially reduce insurance costs,” the experts at Motor Match explained.
“Always remember to provide accurate mileage estimates for fair pricing. Paying your car insurance upfront instead of in monthly instalments can help you save more in the long run.
“You can also protect your savings by maintaining a no-claims bonus, which can lead to more significant savings over time.”
As well as adequately doing your research, making additional road safety precautions – such as trackers – can also lead to lower premiums.
“Drivers should consider black box insurance, where telematics devices monitor your driving habits and encourage safer driving, potentially lowering premiums.
“Completing a driving course may also lower your risk profile and lower insurance costs. Adding an experienced driver to the policy can also decrease these costs, especially for younger or high-risk drivers,” the motoring experts said.
As with purchasing anything, it is a good idea to shop around and compare quotes to insure you are getting the best deal.
“Instead of auto-renewing, compare prices during renewal for a potentially better deal,” they explained.
“If you don’t drive regularly, pay-as-you-go insurance may be another cost-effective option to consider. Looking out for discounts such as multi-car or bundled product discounts can also reduce your overall insurance costs.”
