There are five simple things you should know about car insurance before you buy it or renew it. These tried-and-true tips won't cost you anything, but they could save you hundreds of dollars each year.
You have to have car insurance, but you don't have to pay more than you have to. When it's time to renew your car insurance, a few simple steps and some time spent searching for competitive rates can really save you a lot of money.
Step 1: Reduce the risk and the cost.
The easiest way to lower your car insurance premiums is to reduce the risk and accept a higher voluntary excess. The standard excess for an insurer may be GBP100, but if you pay the first GBP250 of any claim, your premium will go down. This is because you're taking on more risk, so you get a discount. But it's a gamble, and you should know that you might have to pay for a broken window after someone tried to steal your car or a bill to fix body damage after a car park crash.
Step 2: Savings are a sign of security.
Adding safety features can also lower your car insurance rates. All of the big insurers require security equipment with a Thatcham rating, which is usually at least an alarm. If you live in a place where cars are often broken into, it makes sense to add more security. When it's time to renew your insurance, it saves you money and gives you more peace of mind.
Step 3: The less you drive each year, the more money you'll have in your pocket.
Ask your insurance company if you can get a discount if you agree to drive less than 5,000 miles per year.
Step 4: The Named Drivers Trick
If you add a named driver to your policy, their age, gender, and driving record can either raise or lower your premiums. Your insurance rates will go up if you add a young driver, especially if they have a short or bad driving history. But adding a driver over 30 who has been driving for a long time and has a clean record can lower premiums, especially if the named driver is a woman.
Step 5: Compare prices and save even more.
The best way to save the most money on car insurance is to shop around. The cheapest and most expensive car insurance quotes for the same car and driver can be very different (s). Start by using good online quote comparison sites, take the best quotes from them, and then go directly to the cheapest car insurance company for more specific quotes.
So, when your next quote for insurance comes in, don't just accept it and send your money to the insurance company. By following the steps above, you can find the right insurance at the right price.
