Quite rightly, car insurance is not a product that drivers can choose to do without. Because of this, it means that companies can charge you a fortune. As I’m sure many of you are aware, due to a change in legislation, our policies are due to increase in cost.
If you only take one piece of information from this post, then remember this. NEVER, and I mean NEVER automatically renew your car insurance. Nearly every insurance company will automatically renew your contract for “your convenience”. Loosely translated this means they hope you can’t be bothered to change so they’ll charge you extra. Even if you think your renewal price is decent, check around.
Steps for cheaper insurance…
Try out as many comparison websites as you can. Usually, it will take around 15 minutes for each. If you’ve used the site before and none of your details have changed, it could take less than 5. Make sure you have all your details on hand – such as vehicle details (obviously), and any previous accidents you may have had – including dates. Not putting these in could cause your insurance to be invalid which could lead to a whole world of pain!
Also, remember to check cashback sites too. Be warned though that in the past I have been given a quote by a company and found that they offered cashback for £50. So I then went for a quote through the cashback site, only to find it was £50 more expensive!
Companies worth visiting for quotes:
Sort out your new cover as soon as you can. Usually, you can arrange it up to a month in advance. Believe it or not, the sooner you renew, the cheaper your quote will be. Now I don’t know why this is, but over the last three years I have tested this out. The closer you get to your renewal date, the more your insurance will be. Don’t believe me? Try it out.
Add another driver
Adding another driver to your policy can reduce car insurance cost. Of course, this does depend on the other driver as somebody with a poor driving history will have a negative effect. However, when you’re on a comparison site, try adding a named driver to see if your costs reduce.
Get the mileage right
Because I was never sure, I used to write down that I covered 10000 miles a year in my car. I thought that it was better to be safe than sorry. However, I found out that I was driving only around 6000 miles a year, so I was paying for more than I needed. If you’re unsure how many miles you drive, check your MOT certificates as they should have the mileage of your car every year.
Increase your voluntary excess
The excess is the amount you pay out if you have to make a claim in the event of an accident. It will reduce car insurance costs if you increase the amount of excess you pay. And if the accident is not your fault, you can usually reclaim the excess.
Try a different job title
I have a friend who works for Border Force. When inputting what she did for a living, Customs Officer quotes came back cheaper than if she wrote Border Force. This article shows how much of a difference job titles can make.
Pay up front
If possible, try not to pay monthly. Insurance companies tend to charge you extra if you pay in installments and the APR isn’t low. It may even be cheaper to pay with a credit card if you’re able to pay the balance off within a couple of months.
Breakdown cover? No thanks
You’ll probably notice that most insurance companies now offer you the option to tick a box to take out breakdown cover. Of course, they won’t usually provide the cover themselves, but a third party will. This means that the third party will offer the insurance company a nice little fee for their effort. And because they pay this fee, you usually end up paying more.