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Car Insurance
Save £££s on car costs by shopping around and getting the best deal
HOW TO... cut the cost of car insurance We all know that car insurance is a must, but how can we get the right amount of cover without paying a fortune? With a little research and a spare hour or two, it’s easy to cut the cost.
• Don’t just auto-renew when the time comes, always phone up your insurer and ask if they can reduce the price. Insurers rely on the fact that many drivers don’t bother to question the new premium or take the time to call around for a cheaper quote.
Is it cheaper if I pay monthly? No, it will end up costing you more overall so where possible, always pay an annual sum. If you can’t afford to pay yearly in one go, a credit card with a low interest rate will still work out cheaper than paying your insurer with a monthly payment plan, as their interest rates tend to be pretty high.
Shall I bother with protected no-claims and other add-ons? Protecting your no-claims bonus is always worth doing. It may cost a little extra and you usually can’t do it until you’re about four years in but it’s definitely a good thing as you can keep the discount on future insurance
policies, even if you’ve had to make a claim. It’s probably cheaper to get your breakdown cover separately elsewhere, however, so double check.
Can I switch insurer before my renewal is up? Yes, you can swap providers at any time during the year and you can save money doing so. If you have to cancel an existing policy, always make sure the new one starts immediately so there’s no gap where you’re not insured. You should get a refund for the rest of the year from the old insurer but they may charge a cancellation fee.
USEFUL CONTACTS
• Compare prices as well as cover levels at compare themarket.com, confused.com, gocompare.com, moneysupermarket.com, directline.com and aviva.co.uk. · Find further advice at uswitch.com. · There are also some helpful tips at thisismoney.co.uk and money.co.uk.
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• Third party isn’t always the cheapest option. It may be the minimum legal requirement but it only covers the driver you bump into plus their car and many insurers will actually give you a more favourable price if you choose comprehensive as your cover option.
• The optimum time to renew is said to be 20-26 days ahead and it can potentially save hundreds of pounds. Never leave it until your renewal day, as the cost options might not be as favourable and you’ll pay more as a result.
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If there’s more than one car in your family, ask about a multi-car policy as many providers offer incentives for adding more cars, even with different renewal dates.
If you do one thing..
• Adding a second and even third named
driver can bring the cost down, especially if they have a clean record and years of experience. They don’t have to live in the same house as you either. Use price comparison sites – they quickly show you the difference in Your job title can also make a lot of premiums and levels of cover. Try those difference to the cost of your policy so listed in Useful Contacts (left), and go try tweaking the wording to see if that to Direct Line and Aviva directly – brings the cost down. they aren’t on comparison sites
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and may offer a much cheaper rate.
Feature Hayley Gilbert Image Getty Images
Frequently asked questions..
