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How to Save Money on Car Insurance

Man on phone trying to save money on car insurance

Between rising petrol prices, soaring inflation rates and a myriad of other factors, running a car in the UK has never been more expensive. Many motorists pay more than £3000 a year to run a vehicle, a figure that underscores the importance of pinching pennies where possible.

Car insurance presents one of the best opportunities to save, with healthy competition between providers working in the favour of motorists. It does take a little groundwork, which is why we’ve put together an insider’s guide covering everything you need to know about how to save money on car insurance.

How much does the average Brit pay for car insurance?

According to the Association of British Insurers, the average motorist spends more than £400 per year on car insurance. Premiums can vary enormously depending on the type of car you drive, as well as your preferred excess. One thing’s for sure, there’s definitely room for improvement. Below we list the top strategies for how to save money on car insurance:

Drive a less powerful car

We get it. It can be very tempting to get behind the wheel of powerful cars like the Mazda MX-5, BMW M3 and Lexus LC Convertible. Even hatchback drivers enjoy serious horsepower thanks to models like the BMW M135i and Audi S3 Sportback. If you’re on a budget, models like the Ford Focus RS promise serious power, without an eyewatering price tag. That said, insuring powerful cars does come at a cost. This is because most insurers factor in how powerful your car is when putting together a policy. Generally, cars with more power are more expensive to insure.

Understand insurance groups

Most insurers assess applicants based on a variety of factors, then place them in one of around 50 groups. The power of the model is one of the most important factors used to categorise applicants, however other factors such as age, average cost of parts and repairs, safety features, security and bumper compatibility also come into play.

A rating panel fronted by organisations such as the Lloyds Market Association, Association of British Insurers and Thatcham Research sets the standards for each group. Driving a car that falls into one of the lower groups is a guaranteed way to save on vehicle insurance. For example, models like the Citroën C1, Fiat Panda and Hyundai i10 fall into Group 1 as they have small engines, readily available parts and are inexpensive to purchase new.

Higher up the scale in Group 10 are models like the Mercedes-Benz A-Class and Ford Focus C-Max. At the highest end of the scale, you’ll see luxury, ultra-powerful models like the Audi A6 and Alfa Romeo Stelvio. Motorists can expect to pay big premiums as vehicles of this calibre are fast and expensive.

So, you can save money on car insurance simply by driving a car that falls into a lower group. If you’re in the market for a new car or are considering switching to a less powerful model, get started and use our calculator to get a car finance quote in minutes.

Consider your no-claims discount

Insurers reward policyholders for safe and responsible driving. Unfortunately, this also means you may be better off paying out of pocket for small issues like fixing a scratch or replacing a broken window. This is because the cost of making a claim and forfeiting your no-claims discount may be higher than covering repairs yourself. It’s not always the case but it’s worth keeping in mind.

It’s always best to crunch the numbers and chat to your insurer before making a claim. They can help you decide what the best move is in terms of how to save money on car insurance.

Put less miles on the odometer

When it comes to saving on car insurance, driving less is one of the best ways to bring down your premium. Insurers assume that the less you drive, the lower the risk of a claim.

Opt for fully comprehensive cover

Insurance companies are smart and love to factor trends and patterns into their decision making process. Often, opting for a higher level of cover such as fully comprehensive will cost less than alternatives like third party only or third party plus fire and theft. This is because insurers know that people who choose low-coverage policies often make more claims. So, when browsing car insurance deals, it’s always best to compare fully comprehensive cover with other options.

Pay an annual premium

If you can afford to cover the cost of an annual premium, you could unlock great savings compared to monthly payments. You’ll sidestep the interest that insurers often build into monthly payment plans which can translate to significant savings.

Consider skipping extras

Many insurers tempt motorists with extras like windscreen coverage and the use of courtesy cars during repairs. These types of extras are convenient but can come at a cost. If you’re wondering how to save money on car insurance, skipping extras can be a savvy move.

As we mentioned earlier, many motorists find that the cost of making a claim for a minor issue like a cracked windscreen isn’t worth losing the benefits of a no-claim bonus. If this is the case, extras that cover minor issues may not be worth it. The best thing to do is assess your insurance policy carefully and decide what you really need.

How much can I expect to save on car insurance?

Using a combination of the above strategies, the average motorist can expect to save anywhere from £50 to £300 pounds on car insurance. Of course, there are no guarantees and the policies you’re eligible for will ultimately determine how much you can save on car insurance.

Want to know more about how to save money on car insurance? Give us a call today to chat to a friendly and experienced team member about unlocking savings. Every pound counts, and we’re here to help you get the absolute most out of your insurance policy. Get in touch by email or give us a call on 01246 458 810 to find out more about how to save money on car insurance.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

A Beginner’s Guide to Electric Car Insurance

Electric cars are growing in popularity. As of May 2022, around 77,000 new EVs have been registered in the UK this year, of which about 39,000 were in March alone.

It may be that you’re looking to upgrade to an EV (electric vehicle) for your next car, in which case, you’re going to need to wise up on the still relatively new electric car insurance. This article is here to address any questions that you may have.

Do insurers cover electric cars?

Most significant insurance companies – think Aviva, Direct Line, and Admiral – do cover electric cars. However, if you find that your go-to insurer doesn’t offer premiums on EVs, then you may be able to research specialist electric car insurance companies instead.

Be aware that insurance for electric cars may be more expensive than that for non-EVs. This is because electric cars have greater specialist components and servicing costs.

However, with the coming 2030 petrol ban, as well as the rising number of EV buyers, insurance for electric cars is falling – and is only likely to fall further.

Why can an electric car be more expensive to insure?

There are a number of reasons why EVs may be more expensive to insure than conventional vehicles. EVs have specialist parts and expensive batteries. As such, they need to be serviced by specialist mechanics, all of which drives the cost up.

However, it’s important to remember that you will benefit from gas and tax incentives with an EV, and could even take advantage of government grants that reduce the total cost of eligible vehicles by £1,500.

What extras can you secure on an electric car insurance policy?

Car insurance for EVs will offer standard coverage for incidents like accidents or breakdowns, but you may also want to see if your policy can cover items like batteries and charging cables.

EV insurance that covers batteries and portable charging cables and/or adaptors will typically safeguard them against accidental damage, fire and theft while in the car, in use at a garage or at home. If you lease your battery on a separate contract from that of the vehicle, you need to advise your insurance provider too, as this may impact any claim you might open.

You may also want to investigate what kind of legal coverage your policy offers, for example, in case someone trips over your charging cable whilst it’s in use and injures themselves. These issues are complicated, but it’s best to establish your liability cover in advance, so that you know what you’re covered for.

Affordable car finance with My Car Credit

If you’re looking to secure an electric car but don’t want to break the bank, contact My Car Credit today. We’ll check your car finance eligibility and help you plot your path toward affordable EV ownership.

Want to learn more about our services? Get in touch with our friendly team today on 01246 458 810 or enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What is Hire Purchase? – Simple HP Explanation

How to Refinance a PCP Balloon Payment

Is there such a thing as guaranteed car finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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4 New Car Security Devices to Protect Your Vehicle

Friends out shopping happy knowing their cars are safe

If only driving was as simple as getting behind the wheel and hitting the open road! Sadly, there is a dark side to motoring, which means it’s your responsibility to keep your vehicle as secure as possible. If you don’t, you might end up with a steep bill for repairs, while your insurance premiums will almost certainly skyrocket.

Don’t worry. It isn’t all doom and gloom. The car security industry is always advancing, making it easier than ever to secure your motor. Not sure where to start? Take a look at our top four picks from this year’s car security devices.

1. DroneMobile X1 LTE

Overall, car security devices don’t come much better than the DroneMobile X1 LTE. While the name is a mouthful, it’s well worth getting familiar with this alarm system because it’s brilliant at multitasking.

For starters, it does more than sound an alarm when a thief attempts to jack your vehicle. Instead, it tracks the car via cellular signals, meaning you’ll always have its location as long as you have signal.

There’s a specialised app, too, so every notification lands on your phone in seconds and keeps you up to date. It requires installing professionally, but that’s a small price to pay for the extensive peace of mind it provides.

2. Avital 5305L

The Avital 5305L is equipped with all the bells and whistles you need from a car security device. Firstly, the alarm itself reaches a max of 120-decibels, which is enough to scare away even the most determined criminal. If they are persistent and the noise and lights don’t warn them off, the panic mode button will notify the authorities right away. And, if someone other than you manages to get the vehicle started without your permission, there’s a kill switch that stops carjackers dead in their tracks.

3. Stoplock Pro Elite Steering Wheel Lock

Yes, steering wheel locks are still useful tools in 2021. The fact they are much cheaper than a full-fledged alarm system makes them a smart car security device for the average motorist.

According to Auto Express, the Stoplock Pro Elite is at the top of the list. The deep curve in the shaft means it can be fitted to large wheels, while the groove makes it harder for thieves to remove it. In fact, someone would have to pretty much remove the steering wheel to release the double hooks, which is very counterproductive!

4. MONOJOY Signal Blocker

A modern way to gain entry to a vehicle is to boost the signal of the car’s keys, tricking the sensor into opening the doors. Thankfully, a signal blocker like MONOJOY is an affordable and straightforward way to prevent the signal from venturing further than the pouch since it blocks entirely. As long as your keys are inside it, only you can open your car.

Invaluable car security

Car security devices are invaluable, providing peace of mind that your car is safe. But what about financial security when you’re buying your next car? That’s where My Car Credit comes in.

Using our large network of trusted lenders, we make it easy to check your car finance eligibility, apply for a loan and get a great deal, whatever your credit history. With affordable monthly repayments, you can be secure in the knowledge that your new car won’t break the bank.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

5 Different Ways to Pay for a Car

Car Finance: A Complete Guide

Advantages and Disadvantages of PCP Car Finance

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Our Top 3 Best Dash Cam 2021

person installing a dash cam in their car

Did you know there are 38.8 million licenced vehicles on the road in the UK? It doesn’t matter whether you’re a good driver or not because you could be undone by the sheer number of motorists. It only takes one to ruin your day and your insurance premiums!

Thankfully, the best dash cams of 2021 present an effective and affordable solution to the potential problem. With an HD camera covering your front, rear and side, you will have evidence should the worst happen. All that’s left is to figure out is which cameras are worth investing in, something this post can help you with.

Read on for our guide to the best dash cams in 2021, including the most advanced, best for all-round coverage and the easiest to use.

What are the benefits of dash cams?

The best dash cams 2021 are advanced pieces of equipment that contain the latest features. As a result, they can affect your life in a big way, which is something lots of drivers don’t understand. With that in mind, here are the top three reasons to invest in a high-definition camera.

1. Lower insurance premiums

Insurance is the most expensive part of owning a car, after paying for the vehicle itself. Therefore, you should try and cut the costs of your yearly policy at every opportunity, and a dash cam is an ideal solution because it’s proven to lower your fees.

Think of it as having a black box in your car recording your mileage. Insurers look favourably on the best dash cameras as they will usually reveal who is at fault for an accident. That means less chance of a payout for them, should someone hit your car. Which? reports that specific companies offer as much as 15% discount if you opt for a certain brand of camera, such as Nextbase.

2. Higher safety & security

A dash cam works in the same manner as a CCTV system. Studies highlight that thieves and burglars are less likely to target homes due to closed-circuit television set-ups boosting the odds of being identified. The same applies to dash cameras as your fellow motorists don’t want evidence of their poor driving.

Not to scare you, but some people are out to make a quick buck from your good nature and won’t hesitate to crash into you for cash. While “crash-for-cash” schemes are less prominent than a couple of years ago, they remain prevalent enough to take action. This is especially the case if you’re looking for car finance with poor credit and don’t want steep repayments.

The best dash cams of 2021 tell bad drivers and scammers that you should be avoided because you’ll have proof that the incident wasn’t your fault. Even better, you’ll have evidence they did it on purpose, which could lead to civil and criminal charges, depending on the severity of the situation.

3. Peace of mind

Driving shouldn’t be stressful. Of course, irresponsible motorists mean you can’t help but worry. A dash camera will take your cortisol levels down a notch by giving you peace of mind. You already know the odds of a fraudster targeting you are low since they are easily recognised.

The other side of the coin is, you know that you won’t be held responsible if an unavoidable situation occurs. As long as you drive safely and follow the Highway Code, your dash camera will showcase the other person’s incompetence.

Yes, your insurance will be impacted as a result of any incident, if either party makes a claim. Still, it could be worse if they didn’t own up to their mistakes and the insurance parties couldn’t decide who is at fault. With a camera, the file means the evidence lasts until you decide to delete it.

Top 3 best dash cams 2021

1. Nextbase 622GW – The most advanced

If you’re happy to spend a little extra for total peace of mind, the Nextbase 622GW is the best dash cam on the market in 2021 because it goes above and beyond. For example, Alexa voice control and What3Words are in-built into the camera, meaning you can execute commands without operating it manually and send a unique location if you get lost.

The video quality is superb too, with 4K capabilities that capture images and videos at 30fps on the 622GW model. It’s almost like watching a movie at a cinema or on your HD TV. This is a great feature because the footage is easy to see even when the lighting is poor, such as when you’re driving at night. Plus, Nextbase offers insurance to UK drivers, and you can get as much as 30% off if you purchase the 622GW.

2. Viofo A129 Pro Duo – The front & rear all-rounder

The main feature of the Viofo A129 Pro Duo is the dual-recording element, which means it can run front and back cameras simultaneously. For motorists who want to cover every base, the Pro Duo is a must-have since there isn’t much you can’t record once it’s installed.

However, it’s more than a jack of all trades. Thanks to its 3840 x 2160p recording capacity, you can get images and footage in 4K at 30fps. That’s the same as the Nextbase 622GW, which is considerably more expensive. Although it doesn’t have the same fancy gadgets, it does have practical components you’ll love. For instance, the battery is powered by supercapacitors so that it lasts longer without harming performance.

Also, there is an in-built GPS tracker. That isn’t rare in dash cams, yet it doesn’t often come included as standard. With Viofo, it’s not an additional extra, unlike with its competitors. You might not have heard of the brand before, but don’t let that put you off this incredible all-rounder.

3. Garmin Dash Cam Mini – The easiest to use

More needs to be said about dash cams in 2021 that don’t require an engineering degree to operate them. Several products are so complicated that you won’t be able to install them, even with the help of the instruction manual. The Garmin Dash Cam Mini doesn’t fall into this category, with a straightforward design from top to bottom.

Sleek enough to hide behind the rear-view mirror, you can simply attach it to the low-profile mount with no impact on your line of sight. It connects to the app via Wi-Fi to avoid the need for wires messing up your car’s dashboard. Quality-wise, there is no 4K, yet the camera does capture everything at 1080 pixels, so the footage is still in HD.

At less than £100, it’s a no-brainer for drivers who can’t be bothered with the stress that comes with modern technology but want peace of mind behind the wheel.

The right dash for your cam

Securing your car with 2021’s best dash cams is all the more satisfying when you’re driving a car you love. At My Car Credit, we make it easier than ever to find an affordable finance deal, so you can upgrade to the car of your dreams for less.

Try our car finance calculator today to get a better idea of your budget.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Car Finance for First Time Buyers: A Beginner’s Guide

How to Refinance a PCP Balloon Payment

What is Hire Purchase? – Simple HP Explanation

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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The Pros and Cons of Black Box Car Insurance

Car on the motorway with black box insurance

You’ve likely heard of black box car insurance, but you may be wondering what it actually is, how it works, and how it could benefit you. If that sounds about right, then read on – this article is here to break down these questions, helping you to make the best decision according to your needs.

What is black box car insurance?

Essentially, black box insurance – which is also known as telematics – is a policy that some insurers may offer as a way of effectively monitoring your driving. Younger drivers who’ve just passed their test or drivers with less experience will tend to be offered black box insurance as a potentially cheaper option for insuring their vehicle.

Once the black box is installed in the vehicle, it uses GPS to generate information on your driving. That way, your insurer will monitor and set your premiums based on how you drive, rather than blanket policy or general statistics. The data that black boxes collect include braking, cornering, speed, mileage, and the time of day you drive. You’ll be given a driving score which you can see online, and your insurance price is then personalised depending on your driving habits.

Drivers who prioritise safety, drive responsibly, and take fewer risks will be rewarded with lower premiums. Depending on your insurer, these might be adjusted on either a monthly or yearly basis.

Black box car insurance – the lowdown

So, is black box insurance really worth it? We break down the potential benefits and disadvantages:

Black box advantages

Cheaper insurance for young drivers

For drivers who’ve recently passed their tests, black box insurance has significant appeal. It’s just a fact that insurance is more expensive for young drivers. A great way to avoid this is to use a black box, which will quantifiably measure driving habits and reward conscientious drivers with lower premiums. After a year of driving with a black box, it’s also not unusual to see premiums reduce by as much as 60% – a hefty reduction with serious appeal.

Great for convicted drivers

The premium on insurance policies is based on a driver’s history. Convicted drivers can therefore end up with expensive insurance as a result. A black box will record how you drive in the moment, thereby proving you’re a safe driver. This will then result in lower premiums.

Lower premium for drivers

If you’re a particularly careful driver, black boxes will reward you with significantly lower premiums. Plus, you’re likely to be more conscious of how you drive overall, resulting in safer, less risky behaviour.

Anti-theft

Because black boxes use GPS to track your car location, they also work to deter theft, as would-be burglars will likely think twice before stealing a vehicle. What’s more, if your car is stolen, it will be easier to recover.

And the disadvantages

Curfews

If you’re someone who frequently drives at night or during rush hour, you might get frustrated with black box insurance. Accidents tend to happen at nights, so some black box policies impose a curfew where you’ll be penalised for driving beyond a set time. Breaking this may result in higher premiums.

Journey restrictions

Black box insurance can impose restrictions on journey numbers and lengths. This is because statistically, the more and longer you drive, the more likely you are to have an accident. But it can result in restrictive policies, which may not suit your particular circumstances.

Fees

You’ll likely have to pay for a licensed installer to both put the box in and remove it at the end of your policy. Plus, if there’s any damage incurred to the device, you’ll also have to fork out to cover that, too.

Named drivers

Be aware that the box can’t tell who’s driving or when. It’s therefore worth being sure that any other drivers insured on the car are going to be as careful a driver as possible. This will avoid unnecessary price hikes on your premium.

Making driving affordable

Black box insurance is just one of the ways to make driving a car more affordable. That’s certainly something we’re familiar with at My Car Credit, as one of the leading car finance brokers for UK drivers.

With our help, you can spread the cost of your new car with affordable monthly repayments. Use our car finance calculator to get an idea of how much you can borrow or call our car credit specialists on 01246 458 810.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What’s the Cheapest Way to Finance a Car?

How Many Years in a Car Loan Term?

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Guide to Insurance Write-Off Categories for Used Car Buyers

Mechanic inspecting a car which falls under one of the write off categories

When most of us hear the term “write-off”, we instantly picture a twisted heap of metal that has been involved in a horrific car crash. However, that image is only representative of one type of insurance write-off categories. Did you know there are four write-off categories in total?

While an insurance company may choose to write off a car if it has been too badly damaged to warrant repairs, they may also do so if the cost of fixing it does not make financial sense to them. As such, cars with even relatively light cosmetic damage can find themselves falling into one of the less severe write-off categories.

Needless to say, this information is vital when you’re buying or financing a used car. For those unfamiliar with such an idea, here’s a quick breakdown of the four car write-off categories that are currently in use today.

Insurance write-off categories

Category A

Category A is probably the one that springs to mind for most people when they think of a write-off. It covers cars that have been so badly damaged that they’re only fit for a date with a crusher, such as those which have been destroyed by fire.

Category B

Vehicles which fall into Category B are ones which have sustained serious structural damage, but which may still contain salvageable parts. For example, the bodyshell may be mangled beyond recognition, but the engine can be removed and installed in another car. After all useful components have been taken out, Category B cars are also crushed.

Category S

Formerly known as Category C, Category S denotes vehicles which have suffered structural damage but that can still be repaired. For example, they may feature a twisted chassis, a collapsed crumple zone or other damage to the car’s structure. After being repaired, Category S cars can be sold and put back on the road.

Category N

Category N (formerly Category D) is the lowest of the four car write-off categories and refers to vehicles which have not suffered structural damage. Instead, they may simply have suffered expensive cosmetic damage, an electrical fault or non-structural issues such as with braking, steering or airbag inflation. Just because a Category N car has not been harmed structurally, that does not mean it is safe to drive. As with a Category S vehicle, it must be fully repaired before it can be sold or driven again.

Is it safe to buy a car that has been written off?

Category A and B cars must be destroyed and cannot be sold. However, both Category S and N vehicles can offer attractive savings for prospective buyers compared to the same make and model which has not been involved in a crash.

As always with a purchase of this kind, however, buyers are advised to proceed with caution. An unscrupulous vendor might try to sell a written-off car without making sure that all repair work is carried out to the highest standard. This can mean some of the original faults which caused it to be written off in the first place could linger. As such, obtaining a vehicle inspection – which can be purchased for a relatively nominal fee – could save you a significant sum in the long run if problems develop after the sale is finalised.

Finally, buyers should also be mindful that they may struggle to obtain insurance for a car that has been previously written off. This can manifest itself in a greater burden of proof that the car is safe or higher insurance premiums going forwards.

Consider car finance

Cars that belong to Category S or N can represent a sound investment if they have been repaired responsibly. This is especially the case if the buyer is working with a shoestring budget. However, this type of purchase is always something of a risk and should not be entered into lightly.

One possible alternative is to secure car finance for a used car, which can boost your budget and allow you to buy a newer or better-specced vehicle that you wouldn’t normally be able to afford. If you’re interested in learning more about the different types of car finance available to you, or would like some friendly, impartial advice about your options, My Car Credit are here to help. Simply give us a call on 01246 458 810 and one of our experienced team will be happy to discuss your situation.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Car Insurance Cost Plummets to Four Year Low

Man driving his car with new lower car insurance cost

Amidst all the stress and uncertainty of COVID-19, there’s a sliver of good news for motorists across the UK. Car insurance costs have reached their lowest levels in four years. The new average annual premium, calculated by Compare the Market, is now £697 annually. Read on to find out more….

Benefitting from reduced accident frequency

According to their research, car insurance prices decreased by an average of £56 since February and £33 since March when restrictions were first introduced. For younger motorists, aged between 18 and 24 years, premiums fell even further – £69 in April and £154 since February. 

These savings are thanks to dramatic changes in driver behaviour. According to the Department for Transport, traffic levels fell by as much as 73% during lockdown, and the Association of British Insurers (ABI) reported fewer collisions. As a result, insurers are expected to have saved £1 billion in avoided claims. 

Laurenz Gerger, General Insurance Policy Adviser at the ABI, said: “Our latest motor premium tracker clearly shows that motorists have been benefiting from reduced road accident frequency during lockdown.” Alongside others, he urged insurers to pass on these savings to motorists, and several did. Admiral gave £25 refunds to all 4.4 million holders of insurance policies while LV granted up to £50 to customers who could prove the pandemic had financially impacted them.

Dan Hutson, Head of Motor Insurance at Compare the Market, said “The decreased cost of car insurance premiums will be welcome news for drivers, following years of rising costs… and could help families struggling financially as a result of the pandemic. Insurers should continue to support their customers wherever possible.”

How can I make additional savings?

Alongside car insurance premiums, and thanks to the financial strain of COVID-19, people are on the lookout for ways to make additional savings. 

Cycling became incredibly popular during lockdown and, according to Global Data, 1.3 million Brits bought brand-new bikes in a bid to avoid public transport. The government was keen to encourage this shift as part of an ongoing programme to improve the nation’s health and offered people a £50 voucher to repair their two-wheeled drives and get back on the road.

Additionally, official figures show 33,000 hybrid or electric cars were registered between April and June, compared with 29,900 diesels, suggesting people are keen to buy more eco-friendly vehicles post-pandemic.

Alongside their green benefits, hybrid and electric cars are less powerful than their gas-guzzling counterparts, immediately reducing the cost of insurance. Some providers offer up to 5% off premiums and even make donations to environmental charities on your behalf.

Are you looking for fair and affordable finance deals?

At My Car Credit, we help you through every step of the car finance process to make the process as hassle-free as possible. We’re open seven days a week and our website has plenty of helpful tips, guidelines and answers to any questions you have.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

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Car Finance vs Personal Loan, what’s best for me?

Is there such a thing as guaranteed car finance?

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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The 10 Cheapest Cars to Insure For Young Drivers

Two happy young drivers looking for cheap car insurance

What’s the best way to finance a new car? If you don’t quite have the funds to buy a new car outright, you’ll be Car insurance isn’t cheap regardless of your age or experience. However, young drivers often have to fork out considerable sums in their first year of driving. From putting their foot on the pedal as a new driver to the last journey in their first year, young drivers can pay in excess of £2,000 for their insurance. To help the young drivers out there, here’s our advice for the 10 cheapest cars to insure.

Cheapest Cars to Insure

Passing your driving test is an important part of growing up. However, the costs attached to being a new driver can be worrying too. According to comparethemarket, half of the costs in your first year are down to your insurance. That’s why we believe it’s important to choose a car that keeps these costs down. If you choose from our top 10 cheapest cars to insure, you’ll be on the right track!

Car	Average Premium	Average Value
Volkswagon Up!	£804.79	£5,238
Hyundai i20	£809.67	£7,027
Fiat 500	£814.72	£3,113
Vauxhall Adam	£829.37	£3,791
Hyundai i10	£838.08	£5,750
Volkswagon Fox	£842.44	£4,945
Fiat Panda	£867.27	£6,537
Mazda 2	£868.40	£5,986
Peugeot 107	£871.10	£4,060
Toyota Aygo	£874.95	£4,709

City Car Insurance

Topping the list of the top 10 cheapest cars to insure is Volkswagen’s smallest (yet very sophisticated) Up! The ‘City Car’ costs an average of £805 per year to insure for 17 to 24-year-olds. This is closely followed by the Hyundai i20 which has become an increasingly common sight on the roads and is also cheap to insure.

According to comparethemarket, £8,000 is the astonishing figure that young drivers between 17 and 24 have to spend within the first 7 years of passing their test – over half of which is the cost of insurance. To make sure you avoid this money-trap, it’s important to avoid cars with higher premiums.

Choosing the Right Car

Simon McCulloch, Director of Insurance at comparethemarket, said:

“Newer models can come with hefty price tags but older cars tend to have higher premiums and maintenance costs as there is a greater chance of them breaking down and causing an accident.

“When picking your car, it is important to choose a model which won’t carry hefty insurance premiums.”

If you’re looking for a way to finance your first car, get in touch with the My Car Credit team for more advice or do the maths with our car finance calculator.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What is the Average Car Loan Interest Rate?

What Does ‘Finance’ Mean When Buying a Car?

Car Loan APR Explained

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Car Damage Categories: What’s the difference between Cat A, B, S and N cars?

Red car being assessed for crash damage category

When you’ve been in an accident, occasionally your car can be crash-damaged to the point where it becomes a ‘write-off’. Essentially, this means that the car is so damaged that it no longer safe to drive, or the repairs on the car are more expensive than the value of the vehicle. There are a number of strict guidelines which your car insurance company use to determine what happens to your car in this scenario – these are known as car damage categories.

Category A Cars

The damage to your car is so extreme that no part of the vehicle can be salvaged.

If your car is put in Category A, it will be completely scrapped and you will receive a cash payout equivalent to the car’s market value prior to the accident.

Category B Cars

The damage to your car is extensive (i.e. the body, frame or chassis of the car could not be used again) and the vehicle will have to be scrapped.

If your car is put in Category B, the body will be completely scrapped, but some parts will be reclaimed to use in other vehicles. You will receive a cash payout equivalent to the car’s market value prior to the accident.

Category S Cars

The damage to your car is structural (i.e. the wheel axis is bent, a part of the chassis is crumpled or twisted and deemed unsafe) and is uneconomical to repair. This means that the car will avoid being scrapped but will have to be professionally repaired before being driven on the road.

In this case, the insurer will sell the car to someone who chooses to repair the car, which covers the costs of your insurance plan. You can choose to re-buy the car if you so wish.

Category N Cars

Your car hasn’t received any structural damage but has an issue which makes it uneconomical to repair. This is normally based on whether the repairs will cost more than 50% of the car’s value. This can be cosmetic damage, such as a significant dent or collapse in the chassis, or damages to the steering or braking system.

In this case, your insurer will pay you the equivalent of what your car would have cost before the accident.

Write-off advice

If your car has been written-off in an accident, your insurance company will ask to take ownership of the car in order to provide some of your cash payout – this will have been included as a condition in your insurance plan. However, the insurance company can’t do so until you agree the price for the car. So, don’t accept their offer if it doesn’t reflect the true value of your vehicle. You should base your value on market research and factors such as service history and any private work you had done (i.e. new alloys).

Sometimes car traders an attempt to hide a car’s history from you and attempt to sell you a Category S or N vehicle. It’s important to always ask for a full service history check before you buy any car!

When it comes to crash-damaged cars, it is important to know where you stand with your insurance company. We hope our breakdown of car damage categories and write-off advice will help.

How Long Does It Take to Pay Off a Car?

How Quickly Can You Buy a Car?

5 Best Car Picks for Elderly Drivers

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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How Car Value Affects Insurance Premiums

man using apple laptop to research car insurance premiums on used cars

The value of your car is one of the many things that underwriters will factor into your car insurance premium. However, it’s important to know how much affect it will have so you can take it into account for your next car purchase.

Insurance groups

Let’s start by saying that every car is put into an insurance group. These groups are ordered from one (cheapest to insure) to fifty (priciest to insure) – determined by a number of factors. When underwriters set these insurance groups, they take several factors into account, these include:

Car value
Car performance
Safety features
Security features
Cost of repairs and parts

How much affect does my car value have?

Although car value is considered, it’s not necessarily the determining factor of your insurance group. For example, you could buy a 1990s Skoda and assume that because it is a cheaper and older model, you will get a cheaper insurance premium. However, due to the lower safety and security features as well as the difficulty to get parts would make give it a higher insurance rating.

Why is my car value important?

When you apply for car insurance you will be asked to enter the estimated value of your vehicle. It’s important that you provide an accurate estimation that is close to the price you first bought the vehicle at. Although an insurance company won’t pay this initial price back to you (in the event of your car being written off, for example) this allows them to calculate an accurate current value for them to pay back to you. If you give an inaccurate estimation you may be liable to fraud allegations and/or cancellation of your policy.

What else affects my premium?

However, it’s not just your car that affects your insurance premium. Additional factors are also taken into account such as your personal circumstances. Your driving record, car usage, gender, age, and where you live are all considered as factors that increase or decrease your risk of an accident.

The next time you’re making a car purchase, we hope that our information on car value will be helpful. Alternatively, if you’ve found the car you want to purchase and are looking for a finance plan, get in touch and we’ll be more than happy to help!

How Long Does It Take to Pay Off a Car?

How Quickly Can You Buy a Car?

5 Best Car Picks for Elderly Drivers

Loan amount

£

Repayment term

My credit rating

X monthly repayments of
^£X

Typical rate

Loan amount

Total payable

X% APR*

£X

*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!

or call 01246 458 810

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Between rising petrol prices, soaring inflation rates and a myriad of other factors, running a car in the UK has never been more expensive. Many motorists pay more than £3000 a year to run a vehicle, a figure that underscores the importance of pinching pennies where possible.

How much does the average Brit pay for car insurance?

Drive a less powerful car

Understand insurance groups

Consider your no-claims discount

Put less miles on the odometer

Opt for fully comprehensive cover

Pay an annual premium

Consider skipping extras

How much can I expect to save on car insurance?

Rates from 9.9% APR. Representative APR 12.4%

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Invaluable car security

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You’ve likely heard of black box car insurance, but you may be wondering what it actually is, how it works, and how it could benefit you. If that sounds about right, then read on – this article is here to break down these questions, helping you to make the best decision according to your needs.

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Black box car insurance – the lowdown

Black box advantages

And the disadvantages

Making driving affordable

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When most of us hear the term “write-off”, we instantly picture a twisted heap of metal that has been involved in a horrific car crash. However, that image is only representative of one type of insurance write-off categories. Did you know there are four write-off categories in total?

Insurance write-off categories

Is it safe to buy a car that has been written off?

Consider car finance

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