Premiums for car insurance are set to increase dramatically in 2010. Some major insurance news sites predict that premiums could rise by as much as 20% in 2010 due to industry losses and claims.
The competition is fierce, and those who take the time to shop around and compare prices between different companies will be able to benefit. Those who can’t will have their renewals charged.
You’ve probably heard the phrase “brand new customers” applied to television ads that constantly bombard you with discounts and offers for cheaper coverage.
Nearly all of the major car insurance companies in the United Kingdom offer incentives to encourage you to switch from your existing insurer and to take out a policy. If you are looking to reduce your annual premium, make sure to carefully review these offers and take the time to learn the ‘catches’.
If you have not had any claims, there is no reason for your premiums to rise at renewal. However, if you keep the same insurance company year after year, it is almost certain that you will pay more to cover the cost of the incentives or claims of others who are insured with the company.
The UK’s car insurance companies are focused on how many new customers they can get. However, once they have your premiums they no longer care about you. It is important to switch insurers every year if you want to cut down on car insurance.
A month prior to your renewal date, you will receive an invitation from your current company inviting you to renew. This invitation is usually automatic unless the policy is cancelled. You should now start searching for cheaper quotes that offer the same level coverage. The majority of quotes are valid for 30 days from the date they are received. This gives you plenty time to look around at the market and compare prices before cancelling your policy. In the invite to renew letter, you will find proof of your no-claims driving history as well as the discount amount that you are entitled. You will need to keep this document safe because it is required for proof of no claims.
Compare and Move
You can find cheaper car insurance by looking online. There are many. You can get several quotes by visiting at least three price comparison sites. It usually takes just a few seconds to enter all your information to receive a variety of quotes.
You should be aware that the premiums and number of comparisons they perform can vary greatly from one insurance comparison site to the next.
Many times, the comparison websites may have negotiated lower rates with insurance companies for certain customers or cars. All car insurance companies target specific markets.
You can search online for car insurance comparisons for your specific vehicle to help you find one that is more appropriate for your needs. There are many specialist websites that can help you if you have poor driving records, own a rare or classic vehicle or require specialist coverage.
When you find a cheaper provider, take a note of it and return to the site just before your current coverage expires. Clearing cookies from your browser is a must. Otherwise, the company will be able to see that you have been quoted previously and offer you the exact same deal. By doing this, you can ensure that you receive any discounts or incentives as soon as you purchase your cover.
You can purchase car insurance that starts at the renewal date. Once you have found an alternative coverage, you will need to return your certificate to your old insurer. Call your current Insurance company to inform them that you have decided to cancel the coverage and won’t be renewing. They will most likely ask you for reasons. They will ask you why they think it is too expensive. You may also tell them that there are cheaper options. If you’ve been a loyal customer and have not been denied, it may surprise you to find that most will offer to match, or even beat, the premium you were offered elsewhere. This would cut down on your moving costs and save you money.