Car insurance is compulsory, but it is not necessary to pay more than necessary. A few simple steps combined with a little time to find competitive car insurance rates can really save you a lot of money at renewal time.
<b>Step 1 - Reduce risk and reduce cost</b>
The easiest way to lower your auto insurance premiums is to reduce the risk and accept a higher voluntary deductible. An insurer's standard deductible may be £100, but if you meet the first £250 of any claim, you will see a reduction in your premium. This is because you take on more risk, so you get a discount. But it's a gamble, be aware that you may have to deal with the cost of a broken window following an attempted theft or a body repair bill following a parking crisis.
<b>Step 2 - Safety means savings</b>
Installing security features can also lead to cheap car insurance premiums. All major insurers insist on Thatcham rated safety equipment, usually at least an alarm. If you live in an area with a high risk of auto crime, it makes sense to install additional security. This saves you money when your insurance renewal comes due and gives you extra peace of mind.
<b>Step 3 - Annual mileage, less means more in your pocket</b>
If your annual mileage is 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions.
<b>Step 4 - Named Drivers Tip</b>
Adding a named driver to your policy can increase or decrease your premiums depending on the named driver's age, gender and driving record. Adding a young driver will increase your premiums, especially with a limited or poor driving record. However, adding a driver over 30 with a long driving record can reduce premiums, especially if the named driver is female!
<b>Step 5 - Shop around and save even more</b>
The biggest car insurance savings come from shopping around. There can be huge differences between the lowest and highest car insurance quotes for the exact same car and driver(s). Start by using good comparison online quote sites, take their best quotes and go directly to the cheapest car insurance company for more specific quotes.
So the next time your renewal quote arrives, don't just accept it and hand over your money to the insurance company. Follow the steps above and get the right coverage at the right price.
