It can be daunting to buy car insurance. With so many products and sales channels, it can often be difficult to know where you should start. This can get even more confusing when you look at ways to lower your premiums while not compromising your level of coverage or increasing your risk.
Your birth date and age are the most important factors in motor insurance. This is short of any moving or getting older.
It is not always true. No matter which distribution channel you use for car insurance, you can almost guarantee a decrease in your premiums when you implement these twelve money saving tips. You can simply make changes to any of these premium rating elements that are used to create the quotes that you receive and get an alternative quote.
These money-saving tips are explained
Be sure to remember this before we begin: Don’t automatically renew your insurance policy with the same company. If you compare the prices and covers of different insurance companies, it is almost certain that you will find similar coverage cheaper.
1. Investigate online – Visit various suppliers
If you were getting paid at least £150 or $200 for two hours work, you should be pleased. You should aim to save at least $200 on your annual premiums each year by shopping online for quotes.
Check out a comparison website for car insurance. If you don’t like the price but still like the coverage provided by an insurance company, then visit the supplier directly to cut out the middleman.
You will be directed to large motor insurance comparison websites that are advertised on TV.
A specialist provider of auto insurance is recommended. They used to be only available on the High Street, but they are now readily available online. Specialized car insurance providers are able to offer you lower rates because they have access to the economies of scale that group buying allows.
2. Do your research
What are the current TV deals? Everyone who is looking for motor insurance has a unique car and different cover needs. You should write down your exact needs and then think about the places you might be able to find providers that meet your needs. If you are a senior citizen, it is advisable to search the Internet for car insurance policies for those over 50.
3. Get a no-frills policy
A policy called ‘value car insurance’ is available from insurance supermarkets if you don’t care about coverage quality and only need basic road risks. Although they only provide the minimum amount of coverage required by the Road Traffic Act (which is often the case), these policies may be appropriate for younger drivers and low-mileage cars.
4. Only take out what you actually need.
When you already have AA coverage and another vehicle on your driveway that you could use, why pay for car breakdown or additional costs such as cost of a replacement vehicle in case you are in an accident? You should carefully review your policy and eliminate any unnecessary or duplicate coverages.
5. Accept the risk
You have two options when it comes to taking on more risk with Car Insurance. You can choose how much coverage you need in the first place. This could be either comprehensive or third-party, with fire and theft options. You have the option to choose how much cost of damage you want to incur before you contact the insurance company. This is called the voluntary excess. It is the amount that will be deducted from any claim. It is a good idea to pay the accident repair costs yourself if they are less than your voluntary excess.
6. Improved car and location security can reduce the risk of cars
Additional discounts will be offered if you park your car off the road or in a garage at night. You can reduce your premium if you have a classic car that does not come with security devices such as car alarms, immobilizers, and GPS trackers.
7. You can improve your driving skills or make lifestyle changes
Your renewal premiums will increase if there is a need to file a claim due to the way you drive or if there are more than one SP30 for speeding. You can lower your insurance costs by changing the way you drive and how you live.
8. Reduce your car’s usage
You can reduce the amount of time you drive your car, and thus your risk to an underwriter. You should check how many miles you drive each year to make sure you are getting what you pay for. In an effort to save money, do not declare false mileage. If you file a claim, the claims assessor will take note of your mileage and MOT. You risk having your claim rejected or reduced in value if there is a significant discrepancy between what you claimed and what you actually drove.
9. The full premium amount must be paid upfront
Many UK insurance companies will charge extra fees for processing monthly direct debit payments. You can often get a discount of five to ten per cent if you pay online immediately or by phone using a debit card.
10. Check out specialist insurance and Car Insurance Schemes
You should look into insurance providers that cater to specific types of drivers, such as young drivers or performance motor insurance. These schemes provide unique coverage options and tailored cover for each driver group. These schemes are often much cheaper than standardised coverage offered by comparison websites because they offer bulk buying economies of scale in underwriting and claims, and a pool of known risk pools for similar car and person types.
11. Join a Car Club
Special affinity rates are offered by many car owners clubs and specialist marques club to help you get specialist car insurance. A membership to these clubs is often cheaper than the five- to ten percent savings that you can get on your premiums by joining a scheme.
12. Learn advanced driving skills
Online insurance companies can help you save even more if your driver’s education includes an ADC (Advanced Driving Skills Course). These courses are available nationwide and the annual savings that you make on your insurance premiums outweigh the costs. Young drivers will see greater savings and this is one of few positive steps that can be taken to lower vehicle insurance.
Haggle!
This tip is a great one to remember when everything else fails. For the policy you are interested in, you can request a quote online. You should not go beyond the screen that displays the premium prices. Instead, save the quote reference. Quotes can be legally binding for up to 30 days.
After a few moments, pick up the phone to call your insurance company. Inform them that you had difficulties completing your online quote. They will ask for your quote reference number, and you will then be able to provide all the details. You should tell them the price of your quote, which you should already know, and they will then tell you if it’s the best offer. You’d be amazed at how much car insurance you can save by just haggling!