By: Sheila Challiner
Submitted: 2009-03-09 22:00:33 | Word Count: 511
Shop Around
Most of us know to shop around when buying anything but not many people know that car insurers often increase premiums after the first year so it pays off to look around each time your insurance is due for renewal. You could potentially save as much as 500 pounds on comprehensive cover.
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Haggle
Always haggle and give your insurer the chance to match or better quotes from the competition; they often will. I used to use a broker, who’d send me a quote near to the due time – which I’d often shelve because I was busy. Invariably he’d assume I wasn’t happy with the quote and come up with something better.
No Claims
It is not worth claiming for minor damage although you should inform your insurer of any damage as it will affect your no claims discount. All insurers vary but 1 year of no claims can save around 30 per cent on your premium.
Look Online
Internet quotes tend to be very competitive so always compare to phone quotes – you could save more than 10 per cent.
Speak To A Specialist
In some cases an insurance broker can offer a better deal for a young driver or someone wanting to insure a sports car, but most of us can get suitable cover direct from the insurer.
Watch Your Mileage
There are significantly cheaper rates for drivers who do less miles yearly so be sure of your mileage and it makes a difference if you do not use your car to go to work.
Payment
Paying your annual premium in full will save you money – monthly payments may spread the cost but you end up paying more in the long run and some insurers charge up to 29 per cent interest.
Pay Towards Claims
Your car insurance premiums can be reduced if you agree to a bigger ‘excess’ – if a claim is made the amount you pay towards it. Again this will vary so shop around to find the deal that you are happy with.
Cut Out The Frills
If there are benefits that you can manage without, like a courtesy car, this will decrease your premium.
Check The Add ons
Breakdown cover may be offered at an additional cost, usually about 65 pounds and is worthwhile but you can probably get it cheaper if you shop around and buy it separately.
Another Driver
If you add another driver who lives at the same address and has a good driving record this too could reduce your premium.
Improve Your Skills
If you take the Advanced Driving Test some insurers will discount your premium.
Improve Security
Alarms and immobilizers will cut premiums but check that the insurer does give a discount and for which security devices. If your car is parked securely overnight rather than on the street this too can help with discounts.
Do Not Over value Your Car
If a car is written off or stolen your insurer will pay only the market value for that car and the higher the value the higher the premium so be realistic.
