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Is LPG Conversion Worth It?

Rising petrol costs have had many British motorists thinking about alternative options like LPG. So, is LPG conversion worth it? Read on as we unpack everything you need to know about LPG and answer your questions about whether it’s worth making the switch.

What is LPG?

Before we learn more about whether LPG conversion is worth it, let’s take a closer look at what LPG is. The acronym stands for liquefied petroleum gas, also known as propane gas or butane. It’s a byproduct of crude oil refining and is also made when processing of natural gas liquids. The name describes the dual characteristics of LPG. It’s stored as a clear gas but transforms into a liquid when cooled or placed under pressure.

Is LPG cheaper than petrol?

The short answer is yes. LPG typically costs around 50% less than petrol. This makes it a desirable option for motorists who tend to get sticker shock at the forecourt.

That said, you’ll need to consider the initial investment costs. Installing an LPG tank can cost between £1,500 to £2,000. Most motorists won’t start to see savings until at least a year or two after installing the tank. Though of course this depends on how much you drive and the current MPG of your vehicle.

Can I convert my car to LPG?

In general, most petrol-powered cars can be retrofitted with an LPG system. This transforms them into hybrid vehicles that can run on two types of fuel – petrol and LPG.

LPG fuel tanks are usually installed in the boot of the car. This keeps them out of the way and makes them easy to refill. As well as an LPG tank you’ll need to install new cables and fuel tubes in the car, as well as a converter.

Pros of converting to LPG

LPG is significantly cheaper than petrol and diesel. In the long term this can reduce your running costs.
Can be a good way to reduce CO2 emissions and minimise your carbon footprint. For this reason, “is LPG conversion worth it” is a popular question asked by eco-conscious motorists.
LPG tanks can be installed as part of a dual-fuel system. This means you can run your car on the original fuel the engine was designed for, as well as LPG.
LPG is a quieter fuel than diesel.

Cons of converting to LPG

LPG fuel tank takes up boot space.
The addition of the LPG fuel tank slightly increases the total weight of the vehicle and can have a small impact on MPG.
LPG can be difficult to find at petrol stations.
Road tax savings are minimal, often as low as £10 per year.
Is LPG cheaper than petrol? Yes. However, the costs of installing an LPG tank can be high which can put off some motorists.
LPG isn’t a popular fuel which means the government could increase levies and send prices soaring with little notice.

Upgrade to a fuel-efficient vehicle with My Car Credit

If you’re conscious of fuel efficiency, why not consider upgrading to a more modern vehicle? Newer models like the diesel-powered Peugeot 208 and petrol-powered Mazda 2 offer best-in-class MPG. Get in touch with a member of the My Car Credit team today to learn more about how to calculate car finance and discuss how options like Personal Contract Purchase (PCP) can help you get behind the wheel of a more fuel efficient vehicle.

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

Why is Diesel More Expensive Than Petrol?

Between increased fuel prices and a rising cost of living, the British public are looking for ways to cut costs across the board. Driving more economically can help to save precious pennies. But if you have a diesel vehicle, you may find yourself frequently frustrated by paying more at the pump compared to petrol models. What factors influence this price disparity?

Why is diesel more expensive than petrol?

Diesel vehicles have greater fuel efficiency and better miles per gallon than petrol equivalents – particularly over longer distances. However, despite this fuel efficiency, diesel is still more expensive than petrol. Why is this?

Import prices

Aside from the market cost of crude oil itself, another factor that impacts that fuel’s overall cost is its import and delivery prices.

Without diving deep into chemistry, diesel has larger molecules than petrol. As such, it’s heavier, which means it’s more expensive to import and deliver to fuel stations nationwide. This reflects in the cost of diesel itself.

What’s more, domestic refineries of diesel have often struggled to meet the demand of diesel drivers. As a result, the UK has to import more diesel from other countries. This drives up the fuel’s prices (as well as its import and transportation costs), which retailers pass onto customers to cover.

A complex refinement process

Diesel requires a number of complex additives for its refinement process. These are expensive, which pushes the price of the fuel up.

Scarcity and reduced production

In April 2023, the Organisation of Petroleum Exporting Countries (OPEC) announced cuts to their oil production. This was positioned as a move to support market stability. This reduction in global oil supply had the knock-on effect of raising the price of existing fuel resources, including diesel and petrol.

Variation in seasonal fuel demand

At the end of the summer ‘driving season’, retailers often find themselves with a surplus of petrol, which frequently can’t be exported. Retailers will therefore drop the price of the petrol, further widening the disparity in cost between diesel and petrol.

Why are diesel cars more expensive than petrol?

Besides the diesel itself costing more than petrol, diesel cars are also more expensive to run than their petrol equivalents.

In 2018, the UK government introduced a ‘diesel tax’ designed to target air pollution. Diesel cars are more polluting than petrol models – they release four times more nitrogen dioxide, and 22 times more particulate matter. This tax was introduced to disincentivise drivers from choosing diesel vehicles.

Upgrade your diesel vehicle with My Car Credit

If you’re looking to get behind the wheel of a petrol car, My Car Credit can help. Use our car finance checker for a no-obligation quote in mere minutes, or email us today on enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Why Does Car Financing Take So Long?

Am I eligible for car finance?

How Many Years in a Car Loan Term?

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 & Where to Find the Cheapest Petrol Near You

The price of fuel remains high. Many British motorists are on the hunt for money-saving tips and tricks to help keep driving costs down. From shopping around for better insurance premiums to implementing different driving strategies, there are any number of ways to make driving more economical. But when it comes to cutting driving costs, finding cheaper fuel is the way to go.

If you’re looking for how and where to find the cheapest petrol near you, this article will help. We’ve put together a list of the savviest tools and techniques for locating the cheapest fuel near you – read on for more.

How to find the cheapest petrol near you

The myRAC App

The myRAC app promises to help you save up to 6p a litre every time you fill your car up with the Fuel Finder feature. Free to download, this app allows you search within two, five, or 10 miles to secure the cheapest petrol near you.

The myRAC app gets this data from Experian Catalist, which details fuel prices UK-wide. Check the app at 8:00am every day for the most up-to-date prices, and plan your next fuel stop accordingly.

Fuelio

Fuelio is another petrol cost tracker available for Android and Apple. As well as providing crowdsourced information on local fuel stations and prices, you can also track your fill-ups, fuel consumption, mileage, and more in the app.

PetrolPrices website

PetrolPrices is a reliable (and free) website and app that allows you to find cheap petrol and diesel near you. Users input details like their postcode and town, and the website will provide information on nearby fuel stations, as well as comparing the price of fuel at each.

Online fuel price comparison tools

If you’re looking to find the cheapest petrol near you, you can also use an online fuel price comparison tool.

Where can you find the cheapest petrol?

Any of the above tools will help you to find the fuel stations with the cheapest petrol or diesel near you.

However, as a general rule, it’s safe to assume that you’ll find cheaper fuel at supermarket fuel stations compared to motorway fuel stations. As the RAC’s fuel watch initiative shows, you’ll be charged a lower premium on petrol from a supermarket fuel station compared to a motorway station.

The average cost of supermarket fuel tends to be below the UK average, whilst motorway fuel stations charge a significant premium. If you have a long journey planned, try to plan ahead and avoid filling up on a motorway, hitting a supermarket forecourt instead.

UK fuel prices – how to stay informed

If you’re keen to keep an eye on the price of fuel in the UK, there are a number of tools you can use.

The RAC’s fuel watch initiative surveys the daily average price of petrol and diesel across the UK, as well as evaluating average fuel costs at supermarkets and motorway forecourts. It provides a useful overview of nationwide fuel prices.

For a weekly overview of fuel prices around the UK, you can check Gov.uk. The CMA (Competition and Markets Authority) has also announced recent plans to establish a fuel finder scheme. The fuel monitor scheme promises to monitor fuel prices and margins to allow drivers to find cheap fuel near them.

Alternatively, the AA provides monthly fuel price reports. These detail the average regional price for a litre of petrol, diesel, or LPG, and you can find reports reaching back to 2017, too.

Other tips for filling up cheaply

Remember to take advantage of loyalty schemes. Many fuel stations – including those at supermarkets – offer loyalty schemes. These are worth signing up to, as it can help to save you valuable cash.

Don’t be fooled by the promise of ‘premium’ or ‘high performance’ fuels, either. Unless you have a high-performance car, these fuels are unlikely to make any difference to your car’s performance. You’ll be paying more money for minimal impact.

Find finance for an economical car

If you’re looking to upgrade to a more economical set of wheels, find out how My Car Credit can help. Use our car loan calculator to get a no-obligation quote in minutes, or find out more by emailing enquiries@mycarcredit.co.uk.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Why Does Car Financing Take So Long?

PCP vs HP – What’s the Difference Between Them?

Balloon Payments Explained: What, Why & How

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 Much Does It Cost to Drive – 4 Key Factors

As of November 2022, around 80% of British drivers were looking to save money on driving. That adds up to over 30 million British drivers trying to find ways to take to the road in a more efficient and economical fashion.

There are lots of factors that impact how much it costs to drive. Everything from a car’s insurance through to its maintenance adds up. That said, this article will specifically look at the impact that fuel has on how much it costs to drive, helping you to make savvier choices when you next hit the pump.

How does fuel impact how much it costs to drive?

There are four main factors that will impact the fuel cost per mile of your vehicle.

Fuel price

The cost of fuel is probably the biggest driving expense. Fuel prices fluctuate regularly. The price of fuel will vary because of combination of factors:

The price of crude oil. The wholesale price of crude oil is the biggest factor in determining overall fuel price.
Fuel duty and VAT. These are taxes that drivers have to pay on top of the cost of crude oil.
Fuel prices are also dictated by the costs involved in their delivery.
Retailer profit. Companies want to make a profit from any fuel they sell. As such, they’ll add a markup on the wholesale price of oil – typically anywhere from 5 and 10%.
This refers to the ethanol content in the fuel, which can impact overall fuel price.
The strength of the pound (sterling).

Another factor that determines fuel prices is regional variation. In rural locations with fewer fuel stations, prices may be higher, as businesses need to cover their overheads and have a monopoly market. Alternatively, in urban areas with a high number of fuel stations, prices may be lower in order to be more competitive.

Whilst you can’t control the price or ethanol content of crude oil, you can carefully plan your next trip to the pump, avoiding those retailers who heavily mark-up fuel.

Fuel type

The type of fuel your car runs on will determine its overall running cost. Diesel vehicles are more economic for long distances, but are more expensive overall. For shorter, stop-start journeys, petrol or electric vehicles will be more economical.

Vehicular efficiency

MPG refers to a car’s ‘miles per gallon’, and it indicates your car’s fuel efficiency. The higher the MPG, the less fuel consumed by your car when you drive. Higher MPG cars are therefore more fuel efficient and economical.

Driving style

Individual driving style and choices can help to reduce the cost of driving.

Avoiding intense acceleration, driving smoothly, using gears sensibly, and planning your route ahead so as to avoid traffic are more efficient and therefore economic driving styles. Don’t forget to avoid using the air conditioner unnecessarily and reduce vehicular weight, too.

How much does it cost to drive?

There’s no one straight answer for how much it costs to drive. This depends on a number of factors, ranging from the type of car you have through to the cost of fuel.

If you want a figure on how much you’re likely paying to drive, there are plenty of fuel cost calculators online. These handy tools allow you to input information like your car make and model or registration plate and your annual mileage. From there, they’ll provide an approximate figure of how much it costs you to drive.

Alternatively, you can use the following formula yourself in order to establish your fuel cost per mile:

Cost per mile (pence) = Litres x Fuel price / Number of miles

To work out the annual running cost of your vehicle, you can use this formula:

Annual running cost = Cost per mile x Average mileage

How can I find cheaper fuel?

Take into account the factors listed above to try and shop around for the most economic fuel type for you.

Remember that fuel is typically cheaper at supermarkets, and premiums will be whacked onto motorway fuel stations. Avoid ‘premium’ fuel types, which typically offer little advantage to cars unless they’re performance models.

If you’re looking for a way to monitor the average price of fuel at different retailers, be sure to check out the RAC’s Fuel Watch initiative.

Find a more economical drive with My Car Credit

If you’re looking for a more economical and efficient car, check your car finance eligibility or contact My Car Credit on enquiries@mycarcredit.co.uk today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

Am I eligible for car finance?

7 Advantages of Used Car Hire Purchase

What Happens if I Can’t Pay My Balloon Payment?

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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Are Fuel Prices Coming Down?

Between surges in cost-of-living and inflation rates, many British drivers are looking to cut costs on motoring. One of the biggest driving expenses is fuel, which reached eye-watering levels in 2022 as a result of strains to the global supply of fuel.

But are fuel prices coming down? And if so, what kind of fuel costs are UK drivers facing?

How to check cost of fuel

The price of fuel varies based on a number of factors. These include everything from the wholesale price of the fuel itself through to taxation and retailer premiums.

If you’re looking to stay on top of daily fluctuations to fuel prices, add the RAC’s Fuel Watch initiative to your bookmarks. This gives you the average nationwide price of both petrol and diesel, and their Fuel Finder feature can help you locate the cheapest pump near you.

Are fuel prices coming down?

As per the RAC’s data, the current UK average for petrol hovers around 143 pence, and 144 pence for diesel. This is predicted to fall over the coming weeks.

These figures demonstrate a marked reduction in fuel prices compared to July 2022. RAC data reveals that drivers paid 191.43 pence for unleaded petrol and 199.07 pence for unleaded diesel on 1 July 2022.

Average fuel prices for 2023 are reducing compared to 2022, but remain high compared to previous years. In 2021 for example, the average cost of unleaded was 133.36 pence and diesel was 136.05 pence.

As such, although fuel prices are coming down, they remain higher on average than previous years.

Finance a more economical drive

Establish your car finance eligibility and kickstart your journey to driving more economically with My Car Credit. Email us on enquiries@mycarcredit.co.uk to find out more.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

How Do Balloon Payments Work?

Will I Get Accepted for Car Finance?

How to Refinance a PCP Balloon Payment

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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7 Ways to Save Money on Fuel

There are a number of ways to keep driving costs down. Before you even take to the road, you want to ensure that your tyre pressure is correct, that you’re carrying as little weight as possible, and that your vehicle is up to date with any servicing.

But if you feel that you’ve done all you can to save money before you’re even behind the wheel, then it’s wise to also know how to save money on fuel once you’re driving. We’ve put together our top tips for keeping motoring costs low.

How to save money on fuel – 7 tips

Shop around

Get to know the fuel stations in your local area. Saving a few pennies per litre may seem pointless at first, but it all adds up to save you cash in the long run.

It’s not worth taking a serious diversion to fill up, but staying on top of any changes to fuel prices for stations nearby can help you to choose wisely.

Traditionally, fuel is cheaper at supermarkets. Try to make use of any fuel retailer loyalty cards, and steer clear of motorway service stations.

Choose fuel wisely

Once you’ve established the best fuel station for your budget and location, choose your fuel type sensibly.

Many retailers offer ‘premium’ fuels promising everything from better performance to engine protection. These premium fuels are more expensive, often costing anything from 10 to 15 pence more than normal fuels.

But unless you’re driving a top-of-the-range performance vehicle, you’re unlikely to notice these benefits.

Avoid excessive speed

If you drive at speed, you’ll use more fuel.

Remember that the faster an engine spins, the more fuel it uses. Stick to the speed limit and drive in the highest possible gear to ensure that you have the lowest revs. Try and keep your revs between 1500 and 2500RPM for a petrol engine, and 1200 and 2000RPM for a diesel engine.

Drive smoothly and watch for hazards

Avoid intense acceleration and throttling the engine if you can. You may have to brake harshly at times in order to avoid hazards, but it’s ideally best avoided.

Try and read the road in front of you and be aware of any upcoming hazards at all times. Remember to use ‘LADA’ (look, assess, decide and act) when assessing the road. When you’re facing junctions and crossings, you can judge how best to approach in order to minimise any sudden braking or acceleration.

Maintaining momentum is key if you want to save money on fuel. Your engine is least efficient when pulling away, so if you can keep the car rolling safely, this is preferable. For example, if you’re approaching traffic lights, try to leave the car in gear so that it coasts to a stop, rather than braking.

Use gears sensibly

As well as using your gears to maintain momentum and reduce the need for sudden acceleration or braking, you can also strategically use them to improve fuel efficiency.

If your car has a manual gearbox, you don’t need to use each gear when accelerating. You can ‘short shift’, meaning that you skip between first to third or second to fourth and so on. This can help to reduce fuel consumption.

Alternatively, many new models have a gear-shift indicator or ‘eco’ driving mode. This helps you to change gear at the most economical time, and is worth paying attention to when you’re on the road.

Park wisely

If you can find a parking spot that you can drive forwards out of, this can help you to save fuel. Reversing manoeuvres are less fuel efficient, so taking the time to find a good parking spot makes a difference.

Drive gently in the cold

In the colder months, you want to be driving as carefully as possible. Engines are significantly less efficient when they’re cold.

That said, leaving your car to warm up will burn up excess fuel, and may increase risk of engine wear over time. Most modern cars are designed to operate from the moment the key is turned, so you shouldn’t need this ‘warm up’ period. Drive slowly when you first start the car up, too.

Finance a fuel-efficient car with My Car Credit

If you’re looking to upgrade to a more fuel-efficient vehicle, email My Car Credit on enquiries@mycarcredit.co.uk today. We can even find car finance for drivers with poor credit ratings. Start saving money on your vehicle today.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

What is a Balloon Payment on a Car Loan?

Advantages and Disadvantages of PCP Car Finance

How Do Balloon Payments Work?

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 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

Car Finance: A Complete Guide

How Do Balloon Payments Work?

Leasing vs Finance: What’s the Difference and Which is Better?

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

car insurance insurance insurance groups save money

Rising petrol costs have had many British motorists thinking about alternative options like LPG. So, is LPG conversion worth it? Read on as we unpack everything you need to know about LPG and answer your questions about whether it’s worth making the switch.

What is LPG?

Is LPG cheaper than petrol?

Can I convert my car to LPG?

Pros of converting to LPG

Cons of converting to LPG

Upgrade to a fuel-efficient vehicle with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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Why is diesel more expensive than petrol?

Import prices

A complex refinement process

Scarcity and reduced production

Variation in seasonal fuel demand

Why are diesel cars more expensive than petrol?

Upgrade your diesel vehicle with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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How to find the cheapest petrol near you

The myRAC App

Fuelio

PetrolPrices website

Online fuel price comparison tools

Where can you find the cheapest petrol?

UK fuel prices – how to stay informed

Other tips for filling up cheaply

Find finance for an economical car

Rates from 9.9% APR. Representative APR 12.4%

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How does fuel impact how much it costs to drive?

Fuel price

Fuel type

Vehicular efficiency

Driving style

How much does it cost to drive?

How can I find cheaper fuel?

Find a more economical drive with My Car Credit

Rates from 9.9% APR. Representative APR 12.4%

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Between surges in cost-of-living and inflation rates, many British drivers are looking to cut costs on motoring. One of the biggest driving expenses is fuel, which reached eye-watering levels in 2022 as a result of strains to the global supply of fuel.

How to check cost of fuel

Are fuel prices coming down?

Finance a more economical drive

Rates from 9.9% APR. Representative APR 12.4%

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There are a number of ways to keep driving costs down. Before you even take to the road, you want to ensure that your tyre pressure is correct, that you’re carrying as little weight as possible, and that your vehicle is up to date with any servicing.

How to save money on fuel – 7 tips

Shop around

Choose fuel wisely

Avoid excessive speed