DRIVERS may be able to save hundreds of pounds a year on car insurance by tweaking their job title.
Martin Lewis’ MoneySavingExpert has built a clever tool to help you do this legitimately and not in a way that it will invalidate your insurance.
3
The consumer guru reminded money savers of the trick to lower premiums in the latest tips email.
It’s not new but is worth doing because it can save you up to £140 a year on car insurance costs.
Of course, you must still be honest and reasonable when applying for car insurance or it could invalidate your policy.
“You can’t claim to be a barrister if you’re a barista (or vice versa),” he wrote. “But clever savings are possible with small tweaks”.
3
3
Often, insurers ask drivers to select from a list of pre-defined job titles when declaring their occupation during the application process.
But a slight tweak can lower your premium and the MSE tool can help you find an alternative option.
You’ll need to enter in how much you currently pay for insurance and select your job title from a drop down list.
The results will then give you a rough estimate of how you would have to pay for the same policy under a related job title.
For example, a chef paying £350 a year for car insurance could reduce their policy to £211.76 a year by declaring themselves a cook. That’s an annual saving of £138.24.
A construction worker currently paying £280 a year could see bills slashed to £235.95 by tweaking their job title to bricklayer.
Where a hairdresser pays £320 a year, a hair stylist will be charged £313.25 annually.
The tool also suggests stay-at-home parents should never describe themselves as unemployed.
If an unemployed person pays £320 a year for insurance, a housewife is charged just £179.87 and £196.79 for a househusband.
Dan Hutson, head of motor insurance, at comparethemarket.com, said: “You should take care to ensure the information you provide to your insurer is accurate, to the best of your knowledge.
How to compare car insurance
PAYING your car insurance can be a stressful time.
It’s a legal requirement to have car insurance and going without it could land you with a £300 fine, six penalty points on your licence and even a criminal conviction.
But before you automatically renew with your current provider, make sure you compare prices to ensure you’re on the best deal.
There are dozens of reputable websites where you can check prices, including Compare the Market and Go Compare.
Once you’re done, the websites will then show you the quotes you can get some different providers.
If you find a better price, go back to your insurer and tell them what’s being offered elsewhere.
While no means a guarantee way to lower the price they’re offering you, haggling doesn’t cost a penny and can prove successful.
If they can’t lower their price, then you can leave them and go with the cheaper deal.
Also remember to check insurance prices directly with Aviva and Direct Line as these insurers don’t feature on comparison websites.
Once you’ve found your perfect deal, do a check on Quidco and TopCashback to see if you can also earn cashback on top.
“Saying you’re a nurse when you are, in fact, a plumber is likely to make your policy invalid.
“Be honest – if you’re not, an insurer could increase your premium, cancel your policy, or refuse to pay a claim.”
Of course, you’ll need to remember that the prices listed are just estimates and your actual quote from an insurance company may vary.
There are also a range of other factors that will affect how much you pay, such as your no claims bonus, any previous claims as well as the make, model and age of your vehicle.
Ryan Fulthorpe, car insurance spokesperson at GoCompare, said: “With many factors such as the type of insurance cover, age, previous claims and vehicle value, premiums can fluctuate depending on the person, and need an insurance policy tailored to their needs.
“But your job title can make a big difference to your insurance premium, so if you have a job that can have a few different titles see how using them will affect your quote.”
Drivers should shop around for the best car insurance deal, including across multiple comparison sites.
BILL BREAKDOWN
Martin Lewis explains how you can get faster internet without paying more
PAY BOOST
Martin Lewis warns every employee in UK to not miss out on a “hidden” pay rise
SALE ON
Debenhams launches 80% off closing down sale as stores shut forever next week
HOLIDAY HELL
Which? names and shames package holiday firms where your refund may be at risk
GONE OFFLINE
Virgin Media outage hit thousands of broadband customers
GREAT IKEA
Ikea’s furniture buy back scheme finally launches in stores today – how it works
They certainly shouldn’t opt to auto renew their current policy as it could add an extra £125 a year to their premium.
The financial watchdog could ban firms from hiking premiums for customers renewing their policies in a move that’s estimated to save consumers £62 a year on average.
It comes after the Financial Conduct Authority found that 6million policyholders could save a collective £1.2billion a year if they paid the average premium for their risk.
Martin Lewis explains how unpaid carers can claim £1,000s towards their pension
