Car Insurance – How to get the best deal

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When purchasing a new car the last thing you want to do is be paying out a lot of money for your car insurance. Take a look at the below information which may be useful if you are looking for car insurance.

The cost of car insurance has risen steadily over the last few years. Are you making the most of online comparison sites, best buy articles and insurance brokers? Follow The Money Advice Service’s five simple steps and you could save yourself hundreds of pounds by getting the right car insurance.

1. Lower your risk

Cheap car insurance is not necessarily the best car insurance but there are a number of things you can do to lower your insurance risk and push the price of your car insurance down.

Make your car more secure

  • Park in a garage or driveway if possible.
  • Fit an approved alarm or immobiliser.
  • Make sure security devices are Thatcham approved.

Drive an average model

  • Choose a make and model from a low insurance group for a lower premium.
  • Insurers prefer popular models which are not as expensive to repair.
  • Be accurate about your mileage.
  • The lower your annual mileage, the lower your premium. However, don’t underestimate your mileage as this could invalidate your insurance when making a claim.

Drive safely

  • Prove that you are a low-risk driver – some insurers will give you a discount if you have taken a Pass Plus or advanced driving course.
  • Insurance claims or points on your licence will increase your premium.
  • Consider getting a policy which includes an assessment of your driving with telematics (‘black box’ technology). If you can prove you are a careful driver, this could result in a lower premium.

Add a second driver

  • Smooth out the risk by adding a second, low-risk driver – even if they don’t use the vehicle much. (Adding newly qualified young drivers will increase the premium.)
  • Don’t break the law by pretending the second driver is the main driver.

2. Lower the price

There are a few things you can do which might lower the price of your car insurance.

  • Pay for your car insurance annually, not monthly.
  • Check with your insurance company because sometimes you are charged interest if you pay by instalments.

Don’t pay for what you don’t need

  • Consider the cover you have under other insurance policies or elsewhere. For example, some bank accounts include car breakdown cover.
  • Sometimes your insurer or broker may try to sell you add-ons, like legal expenses cover. You may be able to get these products more cheaply elsewhere, or you may not need them at all.

Protect or increase your no claims bonus

  • When changing insurers, make sure you can carry over your no-claims bonus.
  • Consider paying an extra premium to protect your no claims bonus, if you haven’t claimed for five years or more.

Think about adding a voluntary excess to your car insurance

  • Add a voluntary excess to your compulsory excess to lower your premium.
  • Remember you’ll get less back if you make a claim (after both voluntary and compulsory excesses have been deducted) so you need to be able to afford it.

3. Shop around

The more time and research you put in to obtaining quotes, the more likely you are to get a better deal This is especially important if you are over 70 or under 25, and at the first year renewal when premiums can go up significantly.

If you have the time, get quotes from at least two comparison sites and use insurers and brokers that don’t feature on comparison sites. Remember, cheapest is not necessarily best. Get the right cover or your policy will not pay out when you need it.

4. Check the policy

Read the Key Facts and Policy Wording documents. Otherwise, you won’t know if you’re getting the right cover. If you are renewing a policy with the same insurer, it’s up to you to check if the terms and conditions have changed.

5. Ask for a discount

Go back to your current insurer and ask them to beat your best quote.

Article Source – The Money Advice Service – www.moneyadviceservice.org.uk