Archive: MoneySavingExpert's Money Tips Email

10 motoring MoneySavers to drive down costs at a key time

- Cut petrol costs after biggest rise in 9yrs 
- Beat car insurance rip-offs in peak period
- Plus 11m MOTs due, bag £60 full breakdown cover & lots more

Millions are back on the road after the easing of lockdown, but this month in particular there are plenty of metaphorical roadblocks that could send your wallet into a spin. Right now drivers have to combat rising fuel costs, many need to sort their insurance at a busy renewal time, and millions of MOTs are due. So to help slow accelerating costs, we've 53 Motoring Tips. Here are 10 to start with...

1. After the biggest petrol price rise in more than 9yrs, find the cheapest fuel near you in secs. Pump prices dropped in the early part of the pandemic due to falling worldwide fuel demand, but they're back up again as lockdown eases. July's inflation figures showed the largest monthly rise in petrol prices since Jan 2011, and RAC data shows they continued to edge up in Aug. Diesel has also risen sharply in recent months.
   
   While not quite at pre-coronavirus levels, the avg cost of unleaded is 114.66p/L compared with 106.48p/L in May. To help you keep prices in check, a nifty tool finds your cheapest local forecourt - and the difference between best and worst can be huge, eg, in Leicester on Tue we found it ranged from 106.7p/L to 118.9p/L. See petrol comparison.
   
   
2. Whatever you pay for fuel, we've 7 ways to cut your use, eg, keep tyres pumped. Drive clever to drive cheap - cut fuel use.
   
   
3. We're in peak car insurance-buying season - and to avoid getting stung, NEVER auto-renew. Sep is one of the two main car insurance-buying months of the year - along with Mar - as they're when new number plates are released, which prompts more car purchases, and therefore insurance-buying too.
   
   We've found the best time to buy is three weeks before renewal. If you've less time, hurry, as prices tend to rise the closer you get. Even if you're months away, note this key time in your diary so you can pounce. Follow these steps to find YOUR cheapest quote (for full info, see our Cheap Car Insurance guide):
   
   - DON'T auto-renew or you'll likely overpay, instead combine comparison sites to speedily find your cheapest cover. They don't cover the same insurers, nor give the same price for the same insurer, so always check more than one. Our current order is: 1) MoneySupermarket*, 2) Confused.com*, 3) Compare The Market*, 4) Gocompare*. (Why? See comparison order.)
   
   - Also check insurers not on comparisons. You won't usually find biggies Direct Line* or Aviva* on all sites - they're worth a check.
   
   - Also see if counter-logical savings work. Eg, if comprehensive's cheaper than third party, whether adding extra drivers slashes costs or if legitimately tweaking your job description cuts costs.
   
   
4. 11.3m MOTs are due in the next 3mths - sort yours NOW to beat the rush and avoid a £1,000 fine. During the early part of the pandemic, deadlines were extended by 6mths for MOTs due between 30 Mar and 31 Jul. But that means in the next few weeks those originally requiring their annual check-up in spring must be sorted on top of the autumn crop. Repairer Kwik Fit estimates a huge 11.3m are therefore needed in the next 3mths.
   
   That's prompted the Govt to urge motorists to sort their check-up ASAP if it's upcoming in case test centres are fully booked. Our Cheap MOTs guide can help you find tests from £27 and explains how to find 'hidden' centres to avoid paying out needlessly for repairs.
   
   - Unsure when your MOT is due? Use a quick tool to help avoid a fine of up to £1,000 for driving without one. See MOT checker.
   
   
5. Free parking, breakdown recovery & car checks for NHS staff. See our full round-up of NHS motoring deals.
   
   
6. STOP PRESS: Photo licence renewal amnesty extended - but check now if you've one of 2m which are invalid. As part of its coronavirus help measures, the DVLA announced just before we sent this email that drivers whose licences expire between 1 Feb and 31 Dec have an auto 11mth extension from the date of expiry to renew them (previously the amnesty was due to end on 31 Aug, with only a 7mth extension).
   
   Some may want to do nothing, but if your licence has recently expired, it's best to sort it now to be safe as there may eventually be backlogs. If your licence expired before 1 Feb and you want to drive, you MUST renew it or you could be fined up to £1,000. See how to check your driving licence (and what to do if it's invalid).
   
   
7. Get full breakdown cover for £60/yr, or basic cover from £23/yr. For full cover, incl home start and onward travel if broken down elsewhere, AutoAid* has been our top pick for years and still is due to its price and good feedback. It covers you, plus your spouse or civil partner, in any car you or they drive, for £59.99/yr. For comparison, an equiv AA policy is £140/yr bought direct.
   
   If basic cover will do (ie, no cover at home and no onward travel), see how to get RAC/AA cover from £23/yr via cashback sites. More help, deals and tips in Cheap Breakdown Cover.
   
   
8. Car (or bike) damaged by a pothole? You could be due £100s. Use our Pothole Claims guide to see if you can claim.
   
   
9. Buying a new or used car? How to get it cheaper, incl loans from 2.8%. With new number plates out every Sep (this time it's 70 plates), it's one of the peak car-buying months, though buying brand new is THE most expensive way to do it. For example, the AA estimates a car loses up to 40% of its value in the first year.
    
   Whatever car you buy, the cheapest way to get it is to buy it outright, if you have the cash (though we know that's impossible for many). If you don't, the next cheapest route is usually via a standard bank loan, as rates tend to be lower than specialised car finance packages.
   
   Loan rates are currently near all-time lows, y et due to the financial fallout from the pandemic, lenders are being more cautious about who they accept. So to help, use our  Loans Eligibility Calc , where you fill in some details and it lists firms most likely to accept you, thus helping to protect your credit score. For an idea of the best buys, here's the cream of the crop:
    
   - £5,000-£7,499, Tesco Bank (eligibility calc / apply*) is 3.4% rep APR, MBNA (eligibility calc / apply*) is 3.5% rep APR.
   - £7,500-£15,000, Cahoot (eligibility calc / apply*) and TSB (eligibility calc / apply*) are both 2.8% rep APR.
   
   All are over 1-5yrs, except Tesco which is 1-3yrs. We've full info & more loan options in Cheap Car Loans.
   
    

   However, many people like to use specialist car finance packages such as personal contract purchase or other dealer finance. While they're usually pricier than a loan, they can provide flexibility, eg, with one it can be easier to trade in your car for a newer model, though you don't always end up owning the vehicle outright.

10. Smash parking costs by renting a driveway. See if you can rent a private space for less. We found £7/day in London compared with NCP's £14/day.

PS: If you're getting on two wheels instead, we've 14 cycling MoneySaving tips. There's been a surge in bicycle ownership during the pandemic, so we've 14 MoneySaving cycling tips to help, incl work-based discounts, free repairs & try before you buy.