Saving Money On Car Insurance

by Mike

If you’re looking to find cheap car insurance quotes, the best advice is not to let everything take care of itself by automatic renewal. Insurance companies love this. They promote it as hassle-free, as you don’t have to do a thing. They even keep details of your payment card so you can sit back and relax knowing your premium will be paid and your policy will never run out. Great? Well, if you are money rich and time poor, perhaps. But if, like most of us, you want to get the best deal, all you have to do is to invest a little time and effort in searching out good value and you could sniff out some significant savings!

Don’t fall into the trap of thinking that, because you are a loyal customer of your existing car insurance company, they are going to offer you the best deal. Customers who take the trouble to get a range of quotes, so easy from price comparison sites on the Internet, know that’s often not the case and that car insurance companies frequently save their best deals to tempt new customers. The car insurance market is so competitive, it hurts. Just make sure it’s not you it hurts, in your purse or pocket!

So rule number one – get competitive quotes – price comparison websites make this really easy. Then, when you have a cheaper quote (make sure you are comparing like-for-like with the renewal quote from your existing insurer), play around with the components of your quote – annual mileage, excess (the amount you have to pay in a claim before the policy kicks in), any other drivers, no claims policy protection, any extras such as recovery – and see what effect each has on the premium. Many motorists are driving less these days because of the spiralling price of fuel. Have you adjusted the estimated annual mileage on your car insurance policy to take account of any reduction in your annual mileage?

Carefully weigh up the increment on the premium by having a lower excess, or more ‘extras’ such as recovery, against the costs you would incur if you needed to claim but had not included them in your policy. Saving money can be attractive and even addictive – but be careful not to push it too far on car insurance, or you may find that you pay through the nose by being under-insured or uninsured when you are faced with significant costs. Take the time to plan your car insurance properly. Don’t leave renewal until the last minute and run out of time to search out and tailor the best deal for your own particular needs.

By law in the UK, motorists must have at least third party car insurance. This covers accidents and damage to others – third parties – their vehicles, passengers and property. The next step up from this is third party, fire and theft insurance, which also covers theft or damage to your own car, for example by fire. Comprehensive cover will, in addition, meet the cost of repair to your vehicle after an accident, or its market value in the event of it being a write-off. Some insurers limit the availability of third party, fire and theft cover to vehicles worth less than a certain value, sometimes around £5,000. If your car is eligible for third party, fire and theft cover and you are prepared to risk it not being covered for repair or replacement in the event of an accident, you could consider this type of cover as a possible way to save on car insurance. But do check premiums carefully – the market is now so competitive that you may find that comprehensive cover could still be the cheapest option.

Short term car insurance can lead to savings when you don’t use a vehicle throughout the year. Short term car insurance allows you to select a period, typically from days to months, for your car insurance cover. Many people find short term car insurance useful when they are hiring or borrowing a car, or if they are in a car-share scheme. If you don’t need to use a car on a constant and regular basis, short term car insurance can offer significant savings. Not all insurers offer short term car insurance.

If your household runs two or more cars, extra discounts may be available through multi-car insurance. These discounts may come from buying a policy for each vehicle with the same insurer. Some insurers may be able to put two cars on a single policy, leading to even greater savings.

If you have teenage children who drive your car, it may be cheaper to add them to your car insurance policy than for them to have their own, separate policy. If they have their own car and therefore need a separate policy, the make and model of car can have a significant effect on the already loaded premiums that car insurance companies such as Money Supermarket young drivers insurance. Steer clear of ‘boy-racer-mobiles’ and stick to the more modest models and keep using those price comparison websites! One suggests it could help as many as 95% of teenage drivers to save money on their car insurance.

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