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Beat the Road Tax Blues With Cheaper Car Insurance

Gordon Brown’s 2007 budget looks to have hit some drivers hard. If your car was registered after the 23rd March 2006 and emits more than 225g/km of CO2 it will fall into the new Band G bracket. If you car falls into this category your road tax will be increasing from £210 to £300 in 2007 and to £400 in 2008. Most family saloons, MPVs, 4x4s and sports cars are likely to fall into this new high tax band.

If your have a Band G car you do of course have the choice of changing to a lower band model; the road tax on a Vauxhall Corsa for example will decrease from £50 to £35 as it falls into Band B. For many people however this may not be an option. If you have a large family or run a small business driving an MPV or 4×4 may well be a necessity.

This being the case it makes good sense to offset the extra cost with savings in other areas. One area with the potential for good savings is car insurance. There are many actions you can take to lower your car insurance premium and any savings you make can help to pay your increased road tax bill:

• Increase your voluntary excess – increasing the amount you are prepared to cover yourself in the event of a claim can help to lower your car insurance premium. When considering this it is important to remember the potential cost if you need to claim on your policy.

• Downgrade your policy – if your car is relatively cheap it may be beneficial to take out cover for third-party, fire and theft rather than fully comprehensive cover.

• Park securely – parking your car on a secure drive or in a locked garage can help you obtain a lower motor insurance premium than if your car were parked in the street.

• Shop online – make use of the internet to search the market quickly to find cheap car insurance. A full online search could unearth policies that traditional methods may not and some car insurance companies offer discounts for policies purchased online.

• Mileage – calculating and limiting the number of miles you drive each year can help to lower your car insurance when you are looking for a quote. If your circumstances change (i.e. a shorter work commute) then limiting your mileage could prevent you paying for miles you aren’t covering.

• Limit modifications – heavily customising or modifying your car can lead to higher premiums as it promotes a “boy-racer” image in the eyes of insurance companies.

• Fit an immobiliser – installing an approved immobiliser has the dual benefit of making you car more secure and could help to lower the cost of your car insurance.

• Pass Plus – if you have recently passed your driving test completing the Pass Plus training programme can help you qualify for car insurance discounts from a range of participating companies; the Pass Plus certificate can only be obtained within 12 months of passing your practical test.

If the car you drive means you are likely to face expensive road tax increases look to offset the cost by seeking out a lower car insurance premium. As with many other drivers there are numerous ways you can lower your premiums and following these steps may help you free up some cash to meet the increased financial demands of being a motorist.