Car insurance is expensive and it generally seems to go up rather than down regardless of how many years no claims you have, so it’s worth trying to cut down the cost as much as you can. There are a number of ways in which you can do this.
Be Truthful!
Insurance companies will try and find any get out clause they can. So be completely honest on your application. Otherwise your policy could be completely void.
Shop Around When It Comes to Renewal Time
Don’t just accept the renewal quote from your current provider. Insurance brokers try and tempt new customers with big discounts and other incentives such as cash back, whereas existing customers may find their premiums creeping up. Shop around by using comparison sites such as www.uswitch.com – the chances are you’ll find a much better deal elsewhere. If you would prefer to remain with your existing provider giving them a call armed with less expensive renewal quotes can be very effective in getting them to price match their competitors.
Increase Your Excess
You could substantially reduce your premium by increasing your excess. Making a number of small claims for less than £500 will mean that at renewal time you’re pretty much guaranteed to be given a much higher quote and some insurers may actually refuse to ensure you if you’ve made a number of claims in one year. Also, setting a high excess level when you apply will bring your insurance premium down substantially.
Combine Policies
You could potentially make great savings if you insure your vehicles with the same company that you use for other insurance cover. I have certainly saved money using this technique. Insurance brokers don’t like losing customers – less so when they hold multiple policies – they will be more than willing to negotiate the price of your cover. And don’t forget to ask for renewal discounts if you’re staying with the same insurer, especially if you haven’t made any claims.
Use approved security devices
The Thatcham Motor Insurance Repair Research Centre evaluates the effectiveness of car security products against the British insurance industry’s criteria. The majority of insurers in the UK recognise the benefits of these devices and will give discounts to customers who use them, so it may be worthwhile considering fitting a Thatcham approved vehicle tracker. Completely on the flip side of this, please don’t be tempted to ‘pimp up’ your car. Over 50 percent of all insurers will not cover a vehicle that has been significantly modified or customised and, if they do, you’ll pay a hefty premium for it.
Don’t Pay Monthly
Last, but by no means least, don’t be tempted to pay for your insurance monthly. You will be charged a hefty interest rate for doing this – sometimes more than 20 percent.