If the rocketing cost of car insurance has tipped the balance and meant you can no longer afford to drive, you do still have options. Here's what you need to know.
The cost of car insurance has been steadily climbing for years, and quotes amounting to several thousands of pounds are no longer unusual.
Add to this rising petrol prices, car tax and other motoring costs and you may feel that driving a car has simply become too expensive.
If you’re struggling to afford car insurance and want to find a cheaper way to travel then there is hope, here’s what you can do:
1. Double check you can’t afford to drive
Before ditching your motor altogether, it makes sense to drive down the price of your car insurance as much as possible as the renewal price from your existing insurer is unlikely to be the cheapest option.
Don’t accept your renewal price
Firstly, if you have just received your car insurance renewal from your existing car insurance provider and are surprised at the rise in price then don’t be too alarmed.
Most insurance providers will substantially increase renewal prices to boost their profits from drivers who simply accept their renewal notice without shopping around.
If you are happy to put in a bit of leg work, there is a good chance that you’ll be able to drastically cut what you’ll have to pay, making all the difference when it comes to being able to afford to drive.
Compare different policies
The best way to get a cheaper car insurance policy is to find out exactly what you need from your policy and to get quotes from as many providers as possible. You can use our car insurance comparison table to do this.
That’s not all though, there are a number of other nifty tricks that could help you cut the cost of cover even further.
Spreading the cost of your insurance using a 0% purchase credit card instead of paying up to 30% extra for opting to pay monthly, adding a low risk second driver to your policy and increasing your voluntary excess are all things you can do to reduce your car insurance quote to a more affordable figure.
For more help driving down your car insurance costs, read our guide: 9 Easy Ways to Cut Your Car Insurance Costs or follow our Action Plan: How to find cheap car insurance.
Haggle over price
Once you have got the cheapest price possible you can still try to knock it down even further by haggling with the insurance company.
Go back to your existing insurance provider and tell them that you plan to switch unless they beat your cheapest quote.
If you still cannot afford the price you’re offered then there is nothing to stop you from asking them to cover you for a price you can afford to pay - this is not guaranteed to get you a cheaper price but you have nothing to lose by attempting it.
2. Drive someone else's car
There are a number of ways you can travel by car without having to fork out hundreds of pounds each year for car insurance and running costs.
Join a car club
If you want the convenience of using a car for a couple of hours a week without having to fork out hefty overheads, then joining a car club and driving on a pay as you go basis could drastically cut your driving costs.
Most car clubs work by having a fleet of cars located across a town or city which are available to book online in hourly slots. You are then given a code to unlock the car and simply drive off and return the car at the end of your booking.
For more information on car clubs read our guide: 8 Affordable Alternatives to Owning a Car.
Car share
If you tend only to use your car for the daily commute then setting up a car share with a colleague can ease the pressure on your wallet considerably.
The easiest way to arrange a car share is to approach people at work who already drive to discuss the possibility of sharing a lift. Most are likely to be open to the idea, especially if picking you up en-route wouldn’t be too big a detour and you are willing to contribute to fuel costs.
If there is no one at your work who you can share with then you may want to try the National Car Share network, which help arrange car sharing between people driving similar routes each day.
For more information and details on how to take advantage of car sharing, read our guide: How to Car Share & Save.
Hire a car
If your car is sat on the driveway only to be called into action when you need to make a long journey, then hiring a car on a ‘as you need it’ basis could be significantly cheaper than taxing, insuring and maintaining your own vehicle.
The benefit of hiring a car in this way is that the extra costs, including the insurance, are covered by the car hire firm, you simply pay the car hire fee and add petrol.
Although this is unlikely to be an economical options if you need to use your car on a daily basis, it is certainly an option that you should explore further if you only tend to use your car at weekends for example or for the odd visit to friends and family.
As well as hiring from mainstream car hire companies, you could also hire privately owned cars in your area through Whip Car. This can be especially handy if you live in an urban area and only need a car for a weekly grocery shop for example.
Get quotes from a number of different hire car companies and go with the option that's cheapest.
Take a taxi
If you only travel using your car occasionally then taking a taxi on the odd occasion is likely to be cheaper than insuring and maintaining your car.
Work out the approximate cost of the journeys you need to make by taxi and compare this to the cost of keeping your car or the other alternatives to double check if using a taxi is a suitable option.
3. Take public transport
Opting for public transport, be it a train, tube or bus could prove to be an ideal alternative to the ongoing costs of owning a car.
Travel by Train
There are numerous advantages to travelling by train; you get time to sit back and relax on your journey and it’s often quicker than battling the rush hour traffic getting to and from work by car.
Although ticket prices have risen in recent months, you could still save money by travelling by train, especially when you consider how quickly car insurance premiums are set to climb.
You need to compare the cost of train travel with other options to find out if it would be worthwhile. If you don’t live close to a train line then you need to incorporate the costs of getting to a train station as well.
If you regularly make the same journey, over a considerable distance, then a season ticket could save you a significant amount of cash.
Alternatively if you book your seats online in advance you can also find heavy discounts on the price you’d pay at the train station.
Another good way of cutting the cost of your train travel is to check if you qualify for a railcard. There are several different cards available for students, families, those over 60 or disabled travellers and these can all save you a significant sum.
Find out if you could get a railcard by visiting the Railcard website. To make sure you’re getting the best price tickets possible and are maximising your savings, read our guide: How to Find Cheap Train Tickets.
Travel by bus or coach
Hopping on the bus rather than behind the wheel of your car could be a relatively easy way to cut your transport costs.
Although you don’t have control over bus routes, if for example you work in a town centre, or a significant retail or business centre, it’s likely that you local bus will stop nearby.
If you plan on using the bus on a regular basis then you could cut your costs further by investigating monthly or annual bus tickets.
You can also travel one off longer journeys using a coach from just £1, when you book in advance through the Megabus or with National Express.
Travel by tube or tram
If you are a city dweller then using the tube or tram (if you have the option) for your daily transport can be a convenient way of getting around the city.
If you’re living in London, you can also use an Oyster card to mix tube, train and bus fares on the same journey if you need to, making using public more flexible and cost effective.
4. Contemplate cycling
Swapping four wheels for two will not only help you get fit but could also save you thousands of pounds each year.
There are a growing number of cycle paths and routes across the UK that are designed to make travelling by bike an easier and safer experience.
You can find local cycle routes and more tips for getting about by bike by visiting the National Cycle Network website, or downloading their app to your smart phone.
Tax free bicycles
If you don’t own a bike and would like to start cycling to work, you may be able to get some help covering the initial costs through the government’s Cycle to Work scheme.
This scheme allows you to pay for a new bike over several months, directly from your salary, so you don’t pay tax or National Insurance on the cost.
Alternatively you may be able to pick up a second hand bike cheaply (or even for free) from websites such as Freecycle if you need a super cheap pair of wheels.
For more information on the scheme and details on how to apply, read our guide: How CycleScheme Can Save You Money with a Tax-Free Bike for Work.
5. Get walking
The cheapest and most reliable form of transport, walking is the best alternative to driving short distances.
Although commuting 20 miles to and from work each day on foot is unfeasible, substituting shorter journeys for walking will not only save you money but also help keep you fit and healthy.
If you use your car to take your children to school then why not consider joining or setting up a local Walking Bus, so you know that your children can get to school safely without hopping in the car.
These can be organised through the school or with other parents and can be a great way of ensuring your children get to and from school safely while getting some exercise in the process.
6. Decide what to do with your car
If you decide to ditch the car in favour of alternative transport there are a couple of things you need to do.
Declare your car SORN
This informs the tax office that the car is off the road and due to recent changes in the law as any car taxed for road needs car insurance then declaring your car as SORN is a must.
You can declare you car as SORN by completing the SORN instruction on the DirectGov website, using the reference number at the bottom of your ownership document.
Consider selling
Once you are happy using alternative transport to your car then you can consider selling it for some extra cash.
You can advertise your car in a local newspaper, on websites such as eBay or create a dedicated listing on the Auto Trader website to ensure you find a buyer quickly and get a good price.
