Purchasing car insurance is rarely an exciting premise; the best case scenario is your premium compared to last year’s is slightly less, the worst, an unexpected and unappreciated bump. A survey by the AA has shown that the average increase on an annual premium was 40 per cent last year; while this has decreased to just 16 per cent in 2011, it is still an unwelcome increase to your outgoings. However, with a small commitment of your time and the right steps, you can take certain measures to ensure that your wallet doesn’t take as much of a hit.
Picking the right deal
There are many different types of insurance available, and plenty of companies offering any combination of them. You should ensure that whichever policy you choose is suited best to your own circumstances. The average fully comprehensive policy for drivers over the age of 25 is £924, therefore if your car is worth less than £1,000 it would be sensible to opt for a third party only or third party fire and theft policy instead rather than pay more for your premium than your car is worth. If you have other drivers in your family that wish to be insured on your car, determine how often it is that they use the car and investigate whether or not it would be cheaper for you to insure them temporarily as and when they need the car.
Accumulating a no-claims-bonus can be one of the best methods of keeping your premium down, especially if you have five years or more. Protecting your bonus can be difficult if you have recently insured a new driver, particularly a young driver, on your policy as one accident can set you back to zero and cause a hideous bump in your claim. Similarly, if you change insurers at the end of your policy, make sure to request proof of your bonus from your old insurer to avoid any complications with your new provider.
Many people dread the day their insurance renewal is due and want to avoid any mention or acknowledgment of the cost they are about to commit to. Because of this, plenty of people simply opt for another year with their current provider, accepting their renewal quote without pausing to consider whether they can get a better deal elsewhere. Many companies offer to beat your renewal price if you switch your policy so make sure you do your research to see if you can discover a better premium elsewhere.
Comparison websites are quickly forging the reputation as the go to place when it comes to sourcing cheap car insurance. Able to quickly and efficiently receive quotes from a multitude of providers in minutes, drivers wanting to save money from other providers no longer have to trawl through dozens of sites, laboriously entering their details one by one. Just enter your information once and then compare from nearly every provider available for the best deal for you.
So, the next time your renewal drops through the post, spend a little time investigating the market to see how much you could save.