People don’t pay much attention to their car insurance. They simply renew their current insurer when it comes time for renewal. You might end up paying more for your car insurance if you don’t shop around. If you don’t read the fine print on your policy you may not be covered at all. These facts and tricks about car insurance might surprise you if you don’t think twice about your motor vehicle insurance.
1. All your insurance premiums can be paid in one payment
Although it may seem convenient to pay your car insurance monthly, it is almost always more expensive than paying the full amount upfront. Insurance companies charge a high price to spread the payments. You could pay up to 30% more.
2. Do not overdo it
Many people fall for the trap of agreeing to pay an excess insurance that is higher than they can afford. While a high excess can reduce your car insurance premiums by lowering your risk, it is not a good idea. In the event of an accident, you will need to pay for repairs.
3. Your insurer will appreciate the truth.
You should be honest about your use of your car, where it is stored, and who will drive it. You could find yourself in serious trouble if you claim that your car will be kept in a garage overnight and it is stolen from your street.
4. Take a look at how comprehensive your comprehensive coverage really is
Full coverage can mean different things to different insurance companies, especially if the policy you chose was the most affordable. The cheapest car insurance policies don’t usually include a courtesy vehicle, windscreen coverage, or legal protection. It’s worth looking over your policy to make sure you get the best value for your money.
5. If you don’t have to, don’t file a claim
It is often cheaper to repair minor injuries yourself than to have it covered by your insurance. Although it is a requirement of most policies, you should inform your insurer about the accident. However, claiming could lead to an increase in your excess and premiums.
6. Even if you have a no-claim bonus, premiums could still go up.
Even if your no-claim bonus has been protected, you could see your premiums rise if there is an accident. While your percentage bonus might not be affected, the underlying cost for your insurance will increase and you will pay more.
7. If you are in an accident, always take photos
Always take photos of your vehicle and any other people involved in an accident. There are many people who lie to their insurance companies and exaggerate the claims they make. Get the contact information of witnesses if you are able.
8. Do not just renew automatically, do your research!
New customers get the best deals from insurance companies, so it’s worth shopping around for car insurance. Your broker can help you or you can use a price comparison website to get multiple quotes before you make a decision.
9. Any changes in your circumstances should be reported to your insurance immediately
You should notify your insurer immediately of any changes to your circumstances. Otherwise, your insurance could be cancelled. This includes changing jobs, moving house, and any modifications to your vehicle. It also applies to driving to work.
10. Do not rely on only comparison websites to find the best deal
Not all insurance companies permit their information to be posted on price comparison websites. These companies often offer better deals than what you’ll find on price comparison websites to enable them to compete.