While the UK economy may be continuing to embark along an upward curve, the businesses that drive this growth are facing the burden rising costs in the year ahead. Two-fifths of British ventures have already suffered from rising company car insurance premiums in the last twelve months, for example, which in addition to soaring inflation could create a decidedly more difficult economic climate in the year ahead. There are also fears that rising insurance premiums may also impact on residential motorists and households nationwide, challenging those with minimal disposable income.
How to Balance the Rising Costs of Car Insurance: 3 Tips for Success
With this in mind, what practical steps can you take to manage the annual cost of insurance premiums in line with your additional bills and debt repayments? Consider the following: -
Attempt to Minimise the Cost of Car Insurance
As a starting point, you should do everything in your power to minimise the cost of car insurance premiums. While this is not an easy task, is it certainly not impossible for anyone with a proactive outlook and the ability to negotiate with professional insurers. So in addition to gaining an advanced driving qualification and choosing a safe and practical vehicle, you should also look to interact directly with insurers and strive to improve your terms when the time comes to renew an existing policy. This will involve talking to alternative insurers, using the details of your existing policy as leverage to improve your existing circumstances.
Prioritise your Monthly Repayments
With a reduced annual premium, the next step is to carefully organise and prioritise your individual bills and repayments. This will create a financial structure from which you can manage your disposable income, as you distinguish between secured and unsecured loans and make regular repayments in line with existing agreements. Having a fixed and carefully conceived plan in place will help you to avoid unnecessary confusion, while also ensuring that you have complete control of your finances at all times. Without this, it is all too easy to become overwhelmed and lost in a sea of uncertainty and ill-advised spending.
Budget in Pence Rather than Pounds
To assist with your financial planning and balancing act, you should also create a comprehensive and all-encompassing budget. This must include a complete list of your incoming funds, outgoing bills and daily living expenses, which can then be used to govern expenditure, make long-term savings plans and determine a precise amount of disposable income. Before you start, however, you must make a commitment to deal in pence rather than pounds, ensuring that the information you input is completely accurate and capable of delivering viable financial forecasts.