Four Ways to Cut Your Car Insurance

With the exception of a bank or savings accounts, car insurance is the financial product most commonly held by consumers in the UK.

This is hardly surprising really as motor insurance is compulsory if you drive a vehicle. The road traffic act requires all motorists to be insured against their liability for injury to others (including passengers) and for damage to other people’s property. It is an offence to drive your car or allow others to drive it without insurance.

What some might find as a surprise is that car insurance premiums, which rose steadily through the late nineties and early 2000’s are now generally levelling out and in some cases actually falling. This is partly to do with the proliferation of online insurance brokers coming into the market.

Compare Prices

The fact that there is now so much more choice, not just in for car insurance but in the whole auto industry with new and used cars now easier to buy everywhere from specialist online car finders such as Fish4 to Ebay, offers even greater incentives to shop around and find a bargain.

The best technique for getting cheaper car insurance is to compare car insurance quotes. It’s a lot easier than it used to be too with many car insurance companies/brokers/agents offering comparison tools which allow customers to search for and compare quotes from dozens of top insurers and brokers in the UK. Just simply type ‘car insurance’ into Google and see what comes up, you’re sure to find an assortment of insurance comparison websites.

Renewals

Too many of us stay with the same insurer for too long and often end up paying hundreds of pounds a year more than we need to. We tend to only look into new policies when premiums become very noticeably too dear.

Think closely about accepting a car insurance renewal quote from your existing insurer without checking around. Have a good look at the market before every renewal, as your loyalty (or perhaps that should read ‘lethargy’) is unlikely to be rewarded by your existing insurer offering discounted rates.

Modifications

Statistically many insurers have found that a driver of a modified vehicle is more likely to be involved in an accident, or a more costly accident.

Unless you want to pay a fortune on your car insurance avoid modified cars. Modifications don’t just include fitting larger engines or other performance-enhancing changes; they can also be defined also including fitting noisy exhausts and even simply painting Go Faster Stripes.

Almost half of all insurers won’t quote for a ‘mod’ and most of the rest will charge you extra as the reduced competition amongst insurers inflates prices.

Many insurers tend to be more willing and more flexible over the phone if your vehicle has a modification. People like dealing with people. It’s often worth getting a “non mods” quote online with a reputable car insurance UK provider such as Co-operative Insurance, for example, and then call the insurance companies to discuss your particular requirements in person. Do this with the best three or four online quotes you receive using the best price you get as a benchmark and see whether it’s possible to get the prices down.

Occupation

Insurance rates can be dramatically influenced depending upon your profession. If you’re a journalist, in the licensed trade, HM Forces, a professional entertainer, sportsmen journalist, musician, in the media or are in what is considered a high-risk occupation it’s likely that you’ll be regarded as a relatively poor risk and your insurance will work out more expensive than say a teacher or a nurse. Steady respectable jobs attract better premiums.