Owning a car can be an expense pursuit. There are many costs involved aside from the initial outlay of the car itself. To be legally allowed on the road, tax has to be paid either annually or bi-annually, you must have valid insurance and you must pass an MOT test once a year.
There is also the cost of fuel to consider; as the price of petrol and diesel continues to rise, driving is an increasingly expensive luxury.
When in doubt as to whether they should buy a new car, or what kind of car they can afford, many people choose to view their credit scores online (preview). This will give you an idea of the state of your finances and help you to decide whether the extra expense of vehicle ownership is viable. If you have adverse credit then it might be worth putting off buying a car, or maybe choosing a cheaper or more economical vehicle.
Car insurance prices are variable and this is a great way to cut the cost of running a car. Insurance is largely down to two factors, your own driving history and the vehicle you are insuring. Broadly speaking, the larger the engine, the more expensive the insurance will be, and certain makes of car carry higher premiums.
Insurers take into account how long you have held your licence for, your age, and your claims record. Younger drivers are often better off going to specialist insurers that can offer reduced premiums if certain conditions are met including so called “black boxes” that are fitted in your car. Claims records can be protected so even in the event of an accident you can maintain your no claims discount and pass this between insurers at the end of the term. If you have only been driving a short while, are under 25 year old, or have zero no claims, then it is often a good idea to have another driver on your insurance policy to help lower your annual premium.
Other factors considered by insurance companies include where you live and how you store your car. Insurance premium amendments due to area are not changeable as they are done by postcode but regional insurers may break this down further based on local knowledge. Finding somewhere to park your car at night or during the day while you’re at work that is not on the road will reduce your premiums.
When shopping for insurance be sure to go direct to providers as well as using price comparison sites as there are some that are not included and you may get a cheaper quote. Make sure you are honest when gathering quotes as lying will render your policy invalid. Happy (affordable) motoring.