Getting the right insurance policy

Most car insurers provide quotes based on a range of elements including gender, age and occupation. You can get quotes from a large number of insurers from this extremely inexpensive motor insurance specialist. Informing the insurer of your intended annual mileage is one of the ways in which you can reduce the cost of your premium – the less you drive the less likely you are to make a claim, simple.

Follow these useful tips for more advice on how to find the best deal for your car insurance.

Know your Insurance Group

Always ALWAYS check the insurance group of the vehicle before you buy – the higher the band the more expensive to insure the car – ignore this advice at your peril! Sporty cars will attract a higher premium, but choosing a different model or smaller car can make a big BIG difference, with the cheapest insurance category being Group 1.

Shop Around

The best place to start your search for car insurance is with an online comparison website or alternatively, a high street insurance broker. Either way, they will do the work on your behalf and provide you with some of the best deals around to suit your circumstances. This method does have its disadvantages though as these searches are limited due to the fact they don’t all cover the same insurers. According to the money saving expert, Martin Lewis, moneysupermarket.com lists 48% of total insurers and brokers, closely followed by confused.com. It’s also worth doing a manual search for any providers you know of who are not listed on any comparison websites, including Direct Line.

It’s Worth the Haggle

Ask around your friends and family for their recommendations too and perhaps see what deals can be made with the actual insurance companies direct – it’s worth remembering, they want your business so don’t be afraid to haggle for their cheapest price!

Don’t be Tempted by the Renewal Quote

We all know that hunting for a cheap car insurance quote can feel like a never-ending task. Don’t be tempted by the easy route and accept the renewal quote from your existing insurer. Most insurance companies offer discounts of up to 50% to entice new customers to take out a policy with them. Check out how much they are over-charging you by applying as a new customer… you’ll be surprised.

That’s a Bonus

The No Claims Discount (NCD) offered by your insurance provider is one of the best features of any policy. This is a discount you can receive on your insurance premium that can substantially reduce the cost by up to 75% if you have achieved 5 years or more of claim-free driving. This of course means that you are unable to get this form of discount when you first start driving. It is essential that you avoid making any small claims on your policy to build up a claim-free driving history. Generally this form of discount is only offered to the main driver, although there are a few insurance providers out there who will allow a named driver to qualify for this bonus. It is worth noting that you can protect your no claims discount for a slightly higher premium, but you will need to do your sums to make sure this is a worthwhile saving in the long term.

Fully Comp or Third Party?

The value of your car impacts greatly on the amount you pay for your car insurance. You may want to consider Third Party, Fire and Theft insurance for your car if its value is less than £1,000. This means that you are covered for car theft and fire but should you be involved in an accident, then the other party is compensated ONLY where it was your fault.

Car Security

Most cars have an alarm and immobiliser fitted as standard and to help reduce the risk of your car being stolen, it makes sense to park it in a locked garage, if you have one that is. Not only will this keep the premium down, but will protect it from the elements and prolong the condition of the bodywork.

Young Drivers

Young drivers are heavily penalised when it comes to insuring their car due to driving inexperience. There are a few ways to avoid the colossal premium dictated by many insurers. Firstly, choose a cheap car and steer clear of any modifications as this will only ramp up the cost of insurance. The Pass Plus scheme is another way to bring down the premium as is adding a named driver, to your policy. An older person with more driving experience is classed, by the insurer, as a safer motorist and the insurers assume the car will be driven by them for some of the time. A parent who insures themselves as the main driver of the car when in fact it is their son or daughter, are committing an offence known in the industry as ‘fronting‘. This is a definite no-no and an insurance company will refuse to pay the claim if it believes this to be the case. The result of being found out will result in a fine and points on your licence and can even lead to a court appearance for fraud… it simply isn’t worth the risk.

The ‘Black Box’ of Motoring

Just Car Finance believes the telematics box to be the way forward, especially for young drivers. Not only does it substantially reduce the price of car insurance, but offers peace of mind to the parents of inexperienced drivers by raising the alarm if the car has been involved in an accident. The black box is installed in the dashboard and uses satellite technology to track its every move. It can monitor the speed, style of driving and journey time, offering additional bonus miles for safe driving. The recorded data is made available via a customer portal on the insurer’s website where the driver is given a score of their performance and offered advice on how to improve it.

One Last Thing to Consider…

Your quest for cheaper car insurance is not over yet! Now that you have found the right insurance policy for you and at the cheapest price, you’ll be pleased to know that paying the annual premium in FULL can save you £50 on the average car insurance policy. If you can’t afford to stump up the whole amount in one go, it’s makes sense to pay by credit card and spread the cost over three months.