How to Save Money on Car Insurance

Cut Down on Motoring Costs by Finding Cheaper Insurance for Your Car

Jan 6, 2009

Motoring is expensive, and fuel costs keep rising. But one way of saving money is to get cheaper car insurance. Here are some hints on how to do it.

When it comes to renewing car insurance, it really pays to do some research. Simply renewing with one’s existing insurer may be the easiest option, but it is likely to use up more of the prospective customer’s budget than is necessary. Many insurers offer good deals for new customers, so it is well worth seeking them out.

Use Price Comparison Websites

There are a number of price comparison websites for car insurance. The customer simply enters their details and they retrieve quotes from a wide range of insurers. A couple of minutes doing this could save hours on the phone or individual websites. However, it is always a good idea to visit more than one comparison site, as these sites have different insurers on their books. And Direct Line, one of the leading insurers in the UK, does not work with any of these websites, so it is worth calling them separately.

Making Direct Phone Calls to Insurers

Not all insurers offer their best deals via the internet, so once armed with the most competitive quote, it is worth calling some of them directly to see if the premium can be cut further. It is always worth telling an insurer that you have researched the market, and saying what deals can be had from their rivals.

Tthe customer should then give their current insurer a call and see if they can reduce the price; this can often persuade them to drop their renewal rate. And don’t forget trying insurance brokers too. Some of them have group deals with certain companies, and they can offer cheaper rates than an individual could get alone. In other words, research and haggling are worthwhile!

Try ‘Quote Massaging’

Insurers take jobs into account when giving a quote. Therefore it is worth finding different ways to describe one’s job to see if it makes a difference. Experts call this ‘quote massaging’. For instance, a landlord can be described as a publican, or a journalist as a writer. Sometimes this can make a difference.

Claim Carefully

If one needs to make a claim, it is worth checking as to whether it will be worthwhile to do so. Insurers operate a no-claims bonus discount, and if the customer doesn’t make a claim he or she gets cheaper insurance cover. This no-claims discount may be protected, which means that one can make a small number of claims without it being affected. But what many people do not realize is that in the event of a claim, the basic premium will probably go up, even if it is then discounted. So in the event of an accident, weigh up carefully whether it is advantageous or not to make a claim. One way of doing this is to visit the insurer’s website and type in one’s details with and without the claim to get an idea if the premium will rise.

Overall, the important thing is to do lots of research, be prepared to haggle, and exploit existing relationships with insurers. It could save hundreds of pound per year!

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