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Keeping a car on the road can be an enormous cost, which can have a big impact on people’s overall financial situation and make it hard to manage for many. Fortunately, there are always ways that you can make savings as a driver, and combining a few of these could make a big difference to your finances in the short and long term.
Lower Insurance Premium
One of the biggest costs to cover is car insurance, which is a legal requirement so it is not one that you can exactly cut out. There are many ways that you can reduce the amount that you have to pay, though, such as:
- Reducing annual mileage
- Increasing excess
- Increase car security
- Shop around to compare quotes
- Take an advanced driving course
- Use black box insurance
Do Your Own Maintenance
Car maintenance is another major cost that can add up over the course of the year, but you can make savings here by doing your own basic maintenance. Keeping the car well-maintained by topping up the tyre pressure, changing the engine oil, checking the battery and replacing spark plugs will not only save you on gar-age bills but should also help to prevent any costly breakdowns.
Take Out GAP Insurance
Many wonder “is gap insurance worth it?”, but the truth is that it is a smart type of insurance that could save you thousands of pounds. This is because you would only receive the current market value from your insurer in the event of a write-off, which could see you out of pocket by thousands. GAP insurance will cover the shortfall and save you a huge amount.
Pay Tax Annually
Many people pay their road tax in monthly instalments as this is easier to manage, but did you know that this is actually more expensive? It costs less to pay in one lump sum at the start of the year and – if you can afford it – this can make your monthly budget much easier to manage and you can rest assured knowing that you are covered for the rest of the year.
Buy Economical Tyres
When it comes to tyres, cheapest is never best and could end up costing you more in the long run. Instead, you should invest in high-quality eco or energy saver tyres that can improve fuel economy and save you around £50 a year. On top of this, you will also benefit from a greater performance with high-quality tyres (just be sure to keep them topped up and to check the tyre tread depth regularly).
Combine these 5 tips together and you might be surprised at just how much you can save and the difference that this can make to your finances over the course of a year (and beyond).
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