[AD] How to Save on a Budget When You Own Two Cars

Owning two cars can quickly become a substantial expense, especially when you factor in insurance and running costs. While it might seem impossible to reduce the financial burden, there are practical steps you can take to cut down on these expenses.

Start by reviewing both cars separately

Before you can save money, it’s crucial to understand where you stand with each car. So, the first step is to assess the insurance and running costs for both vehicles individually. 

Make a note of each car’s age, model and safety features, as these details directly impact your premiums. Older cars may have lower insurance rates due to their value, but they might cost more to maintain. 

On the other hand, newer, safer vehicles might bring down your premiums but come with higher repair bills. 

Take the time to calculate the full running cost for each car, including fuel, maintenance and insurance, to spot areas for potential savings.

Shop around and compare quotes

When it comes to insurance, it’s vital that you shop around each year to get the best deal. Don’t just rely on your existing provider – seek quotes from several insurers. Online comparison websites can help you quickly compare prices and benefits. 

Don’t forget to factor in things like excess amounts, the level of cover and any optional extras when making comparisons. Some insurers offer discounts for things like low mileage driving or a clean driving record.

Adjust your policy details to cut costs

You can save money with multi-car insurance by insuring both vehicles with the same provider. Many insurers offer discounts for adding a second vehicle to your policy, making it one of the easiest ways to lower your overall insurance costs. 

However, beyond bundling, you can also adjust your policy details to save further. Opting for a higher excess, where you’re willing to pay more in the event of a claim, can reduce your premium. 

Additionally, consider dropping optional extras you don’t need, like breakdown cover if you already have it elsewhere, or reducing the level of cover on a second vehicle that doesn’t get as much use.

Look into bundled policies later

Once you’ve reviewed the individual costs of each car, consider bundling your insurance policies. 

Many providers offer multi-car insurance policies, which can give you the convenience of managing both cars under one roof while saving you money. 

Bundling policies doesn’t just apply to cars – it may extend to home insurance or other types of coverage. This approach can sometimes give you access to additional discounts, ensuring that you receive the best deal across all of your policies.

Stay alert at renewal time

Insurance premiums often increase at renewal, even if your circumstances haven’t changed. Make it a habit to review your policy before the renewal date. 

Check for any changes in coverage, exclusions or rates, and don’t hesitate to contact your insurer to negotiate better terms. If you’ve made any changes to your driving habits, like reducing your mileage or installing a security system, these might qualify you for discounts. Be proactive about looking for better deals, and don’t automatically accept the renewal offer without checking if you can save elsewhere.