Just a quick note before we go any further - there's nothing special about Peugeot 306 insurance so if you find this guide useful and it saves you some money please leave a comment at the bottom and feel free to share it with friends so they can save on their car insurance as well.
We've tried to focus on the car insurance factors which are relatively easy for you to change as it's not much use just recommending to buy a lower insurance group car or increase your age by five years.
Top 7 things you can do to reduce your car insurance
- Ditch the add-ons
- Shop around
- Increase your excess
- Add a second driver
- De-modify your car
- Improve vehicle security
- Get quotes for both TPF&T and Fully Comprehensive
Ditch the add-onsMany insurance companies will try to sell extra features which you might not need or want such as breakdown cover or a hire car in the case of an accident. If these are not necessary for your situation then ask for them to be removed and watch the annual premium tumble.
Shop aroundIf you are feeling really really lazy (but not lazy enough to just pay the increased renewal that's come through the letter box) the quickest way to reduce your Peugeot 306 insurance is to hit the comparison sites - Money Super Market, Go Compare and Compare The Market are three of the biggest and within about 10 minutes you can compare car insurance quotes from literally hundreds of insurers. I almost guarantee you will find a cheaper quote and when you do, ring up your current insurers and see if they can beat it.
Increase your excessIn the event that you do have to make a claim the excess amount is the amount you will have to pay first. For instance if your excess is £500 and your claim is for £800 you will only get £300. Now you need to decide the minimum amount it is worth claiming for baring in mind claiming will affect future car insurance premiums for many years. Increasing your policy excess will reduce the yearly premium but obviously in the event of a large claim you will need to contribute more.
Add a second driver - even if they aren't going to use the carIt is well-known that adding a second driver who is in a lower risk category than yourself can decrease your car insurance and it is perfectly legal to do so. In my experience the best candidates for this are middle aged females with a clean licence and no claims in the last 5 years or more - Mums, Aunts etc.
It only takes a minute to add their details in when you get an online quote so why not give it a go. Please note this should not be confused with 'fronting' which is illegal. Fronting is where you falsely lead the insurance company to believe who the main driver of the vehicle is. For instance, having your son as a secondary driver on your car insurance policy when they are in fact the main driver.
Remove any modificationsUnfortunately, almost all modifications will increase your Peugeot 306 insurance premium so if you are trying to save money one of your first priorities should be to ditch the mods and put it back to standard. This is easier said than done as often it will mean finding original parts to replace the modified ones. Also bare in mind the reduction in insurance premium will be offset by the money you have had to spend to return the car to standard. However once you have done this you will save money year after year on insurance premiums so if you intend to keep the car for any length of time then it is probably best to de-modify your car.
Improve vehicle securityMany people find fitting an immobiliser or alarm will reduce the price substantially, however you should consider the cost of buying and fitting an aftermarket alarm systems is usually high so this must be weighed up against any potential savings. We would recommend phoning your insurance company and finding out exactly how much the premium will drop if you fit an alarm system beforehand.
Do not assume Third Party Fire & Theft will be cheaper than Fully ComprehensiveIt is often assumed that TPF&T was the cheaper of the two because you essentially get less cover but it is not always the case. Some car insurance companies will take the view that customers who only have TPF&T are a higher risk due to the statistics of claims etc. I have found that in 90% of cases it is cheaper to go with third party fire & theft but it is worth checking.
Here are just a few of the other factors which will affect your premium but you don't really have any control over so we didn't think it was worth going into much detail over:
- Number of years driving
- Number of previous claims
- No Claims Bonus
- Driving Convictions
- Where you live
- Annual mileage
- Insurance group
Did this guide save you money? Drop us a comment below, we'd love to hear some success stories.