10 simple ways to save on car costs
With the price of car insurance premiums, petrol and road tax all on the up, it's crucial you cut your car costs wherever you can. Check out my ten top tips…
According to a recent report from Sainsbury's Finance, the annual cost of running a car has increased by a whopping 11% since 2007.
Sainsbury's research shows that insurance is at the root of the rise, with the typical cost of insuring a car increasing by 13% in the 12 months to October 2009. This is a 23% increase since 2007.
The data also shows that road tax is demanding an extra 8% from the average motorist, a 22% rise compared to two years ago.
Meanwhile, petrol prices are soaring and, according to AA Financial Services, are set to pass £5 per gallon before Christmas. What's more, the government's plan to reverse the temporary cut in VAT on January 1 2010 will only help to hike up prices further.
However, don't despair - there are things you can do to help keep your driving expenses down! Here are my ten top tips for slamming the brakes down hard on accelerating car costs.
Your car costs…
1. Drive less
It may sound obvious, but the less you use your car the less you will have to fork out for fuel.
If you're fit and healthy, and don't really need to drive to the corner shop, then hit the pavement and walk.
Not only is driving less better for the environment, committing to a lower annual mileage could also help lower the cost of your car insurance.
2. Car share
First of all, if your family owns multiple motors, ask yourself if you could get away with using just one car.
If you drive to work, find out if any colleagues live near you and ask if they want to carpool. Or, if you do the daily school run, it's likely that parents from the same school live in your area so see if they want to share lifts.
On the other hand, if you don't know anyone in your area, websites such as carshare.com or liftshare.com are great for locating other people travelling in your direction.
3. Turn off the air con
By taking simple steps to improve your car's fuel efficiency, you could seriously slash your petrol bills.
Keep your speed steady: Swift, sharp breaking and accelerating can ramp up your fuel costs so try to avoid sudden increases or decreases in speed.
Lighten your load: Carrying unnecessary weight, such as unused roof racks, puts more strain on the vehicle and eats more fuel.
Turn off the air con: Running the air conditioning increases your car's fuel consumption, so only use it when it's absolutely necessary.
Pump up your tyres. If your tyres are under-inflated, you will need to put your foot down harder and use more fuel.
Drive in the right gear. Driving your car in the correct gear will enable the engine to work more fuel efficiently.
4. Find the cheapest fuel
With petrol prices rising fast, it's crucial you do your homework and hunt down the cheapest pumps before you fill up.
Check out the free service provided by the website Petrolprices.com. You simply enter your postcode, how far you're willing to travel to buy fuel and the clever site will compare the price of petrol and diesel at thousands of petrol stations across the country.
5. Take advantage of cashback and rewards
It is well worth paying careful attention to how you purchase fuel. These days many credit card providers offer excellent cashback and reward deals when you spend on your plastic.
For example, if you use the AA credit card for your everyday purchases you will receive reward points, and double reward points on motoring, fuel and AA products.
The points you've collected can then be used to help pay for all sorts of motoring products and services, as well as some insurance products and days out.
Meanwhile, if you would rather receive your reward in hard cash, the American Express Platinum credit card offers customers 5% cashback on all purchases (up to £100) in the first three months.
Your car cover…
6. Shop around for cover
When it comes to car insurance, it pays to shop around for the best deal. Therefore, before you buy or renew a policy, always take the time to see what's on the market.
Using an online comparison service will help you compare a wide range of deals and track down the cheapest prices in no time at all.
7. Avoid making modifications
Before you pimp your ride with a super spoiler or flashy alloy wheels, bear in mind that making modifications to your motor can dramatically ramp up your car insurance costs.
This is because insurance companies tend to view the drivers of modified cars as more likely to be involved in an accident - and their car more costly to repair if they are.
8. Lock up your vehicle
Insurance companies calculate the price of your premium based on risk assessment.
Therefore, if you can reduce the likelihood your vehicle will be damaged or stolen, your insurer is likely to lower your premiums.
For example, if you have a garage, make sure you use it and remember to always keep it locked. Alternatively, fitting a car alarm or immobiliser could also save you a tidy sum.
9. Pay for your policy in one go
It often works out cheaper to pay for your car insurance policy in one lump sum. This is because many insurance companies will charge you interest if you opt to pay for your premiums in monthly instalments.
If you can't afford to hand over the entire amount in one go, consider using a credit card with 0% purchasing power to cover the cost.
As long as you clear your balance before the 0% deal expires, you won't pay a penny in interest.
10. Drive safely
Finally, the best way to keep your car insurance costs down is to avoid making a claim.
If you have not made a claim on your insurance for over a year, your insurer is likely to reward you with a discount when you come to renew your policy: a no-claims bonus.
If you still haven't claimed after four to five years, you may get the chance to pay a little extra to protect your no claims bonus. This could be a great investment, as a decent no claims bonus could cut your insurance costs by half!
**Articles featured on BeatThatQuote.com are for information purposes only and reflect the views of individual writers. Articles are not, and should not be considered as, financial advice. BeatThatQuote.com strongly encourages our readers not to rely solely on information contained within this article/our website, but to conduct their own research and seek independent advice about the financial products they purchase.**
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