There are fewer things more annoying than getting your car renewal through the post… It's more than last year, yet you've not put any claims in? Read on to discover how you can lower your insurance with some simple smart steps.
What to ask a car insurance broker
The company you call to discuss your insurance isn't the company that will actually insure you - it will be a broker, and the broker will add their cut on top of the deal - and it's here that some savings can be made.
When you give the broker your details they input them into their database, and it will spew out a list of insurers who are prepared to give you cover. The higher a risk you are perceived to be the fewer insurers will cover you, and the higher your premium will be.
It's at the discretion of the broker how much they want to charge you (i.e. how much extra they want to add on top for their commission). So there are three ways help your cause…
- Be polite - never forget the broker is a person doing their job, if you're an idiot they'll treat you as such, and will happily load your quote to make you pay (literally) for your rudeness.
- Be prepared - Have ALL your documents and details to hand. Make the broker's job as easy as possible, don't mess them about and waste their time as you rifle through a drawer looking for your driving licence.
- Don't speak while you're on hold - You may actually be on loudspeaker, many people have been caught out by this.
What affects your car insurance cost?
There are a number of factors that dictate how much you're going to have to pay, these include; your age, driving experience, your job, where you live, what you use the car for, what car it is, etc.
Your insurance is ultimately calculated using a huge database of statistics compiled over many years to ascertain your risk. Many of these factors are out of your control and you just have to accept that insurance for 18 year olds is always going to be crippling. But you do have control over some of the aspects.
Your job title has a surprising - effect altering it (but not lying) can save you a surprising amount of cash. For example a care worker pays less than a nurse, a factory worker less than a machinist, and a café worker less than a waiter.
The best way to ascertain what job will save you the most it to create a fictitious account on a comparison website - and put in different jobs. You can’t tell outright porkies, but you can tone down your job title to help your wallet.
How does a No Claims Bonus affect your car insurance?
Nothing will help bring your insurance down more than building up some No Claims Bonus! It's not a quick solution unfortunately, but it is essential. If you're a 'young un' get your own policy as soon as you can.
You may think it makes sense to be added as a named driver on your folk's insurance, but that means you're not building up any bonus - it's actually wiser to put them on your insurance, which in many cases will actually bring your premium down, while at the same time allowing you to build up that all important bonus.
If your policy gives you the opportunity to protect the bonus (in the event of a claim your bonus isn’t all lost) always take it, especially if you've accrued a few years worth.
Should I renew my car insurance?
When you get the letter/email through with your quote, never just accept it - The insurance brokers rely on a large proportion of people who either can’t be bothered to look for cheaper quotes, or simply don't realise that they can get cover cheaper elsewhere.
And getting quotes from other brokers needn't take forever thanks to the wealth of comparison websites. Pick a couple, chuck in your details and let them do the hard work for you.
If the comparison machine spews out a quote cheaper than your renewal don't buy it without first giving your existing insurer a call to see if they'll beat it.
The chances are they'll be able to either match, or beat, the quote and will be happy to do so seeing at keeps you as a customer.
What happens if I lie on my car insurance form?
You can save a load of money be telling a few lies here and there - but, and it's a massive but - if you get found out you will find it very difficult to get insurance for the next few years, and if you do manage to get someone to cover you, it can be horrifically expensive.
"That's ok," I hear you say, "I'll be careful and I won't have an accident, so they'll never find out". You can be the very best driver in the world - but you have no control over the rest of the world. So tell the truth and don't take the risk.
How does the type of car affect insurance cost?
If you've got your eyes set on a performance, or rare car, reconsider unless you're willing to pay the price. Consider less sporty options and save your pennies until your premium drops.
Mainstream cars, such as Fiestas, and Corsas are likely to be your best bet, with the smaller engined variants obviously being the cheapest.
Modifying (if you want cheap insurance) is a no-no, and never be tempted to modify the car and not tell the insurers - if you have a crash, and they find out, you could be in a world of pain.
What is a ‘black box’ on a car?
Some insurers are fitting 'black boxes' into cars which monitor your driving style - and can, in some circumstances lower your premiums.
But GPS technology is still relatively crude and isn't a 'real world' indicator of how you drive, so you could find that being involved in incidents (say carrying out an emergency stop) out side of your control, could actually see you paying more.
They are worth considering, but they’re not foolproof.
Do points on your licence affect insurance?
Many of us have points on out licence, and in general 'minor' speeding infringements don't affect your premium too much, but get caught driving with a mobile, or find yourself with a more serious penalty and your insurance will sky-rocket.
So keep your nose clean and your point-free licence could see you on your way to sensible insurance.
And finally…
You'll probably have realised by now that there is no easy way to get cheaper car insurance – there is no magic company who will insurer you for £20.
There are however a number of things you can do to help your cause, and, if you play your cards right, with each passing year you'll pay less and less!