So many of us have felt the pinch in recent years amid huge increases of inflation affecting everything from food to fuel.
Car insurance is one of the latest bills to face steep increases, with premiums rising faster here than anywhere else in Europe. And if you’re a small business insuring multiple people on their company cars, then the costs here can rack up rapidly.
But there are ways to keep your company cars on the road without breaking the bank. Here are some expert tips and tricks to find cheaper car insurance in 2024.
Choose a cheaper car to insure
Your car itself has a big impact on your insurance cost. Cars are assigned insurance groups, ranging from 1 (cheapest) to 50 (most expensive), based on factors like repair costs, security, and performance.
If a car in a smaller insurance group can match the needs of your staff, then this is one way to cut insurance costs. Consider smaller, less powerful engines, and avoid cars with expensive modifications or high-performance reputations.
Reduce your annual mileage
The less you drive, the less risk you pose to insurers. By accurately estimating annual mileage, you can ensure you’re not paying for cover you don’t need.
Encourage (and even incentivise) staff with company cars to do so.
Consider alternatives for short journeys, like cycling, walking, or public transport. If you’ve recently switched to remote working, let your insurer know that the mileage has reduced on company cars if staff no longer need to drive for commuting. This can cut insurance costs.
Try multi-car insurance
As a business insuring multiple vehicles, you can potentially benefit from multi-car insurance.
This type of policy allows you to insure multiple vehicles under one discounted premium. This can be a particularly good option for families or households with multiple drivers as well as for businesses insuring a fleet of company cars. Some insurers offer a guaranteed discount for multi-car policies, so be sure to check with your provider or comparison websites.
Consider a black box policy for the highest risk drivers
Telematics, or “black box” insurance, is an option that can be a great way for young or inexperienced drivers to save money.
A device is fitted to your car that tracks your driving habits, including speed, mileage, time of day, and even how smoothly you brake and accelerate. Safe driving habits are rewarded with lower premiums. However, it’s important to be comfortable with this level of monitoring and ensure you understand the policy’s terms before signing up.
Speak to your staff about how they’d feel about black box policies.
Bonus tips
- Shop around: Don’t just auto-renew with your current provider. Get quotes from multiple insurers and comparison websites to find the best deal.
- Add named drivers: If employees share their company car with a partner or another driver with a good driving record, adding them to your policy as a named driver can sometimes bring the cost down.
- Pay annually: While it might seem easier to spread the cost, this adds on interest so you will pay more overall.
- Increase your voluntary excess: This is the amount you agree to pay yourself towards any claim. By increasing the excess, you can typically lower your premium. However, make sure you can afford the excess if you need to make a claim.
- Only insure staff with clean driving licenses: Penalty points and driving offences will significantly increase your insurance costs. So perhaps consider company car penalties that mean those with penalty points and driving offences may not be eligible for company cars
