If you’re coming to the end of your current car insurance policy, it’s time to get a price calculated for the new 12-month period. While auto-renewing may be a convenient option, you’ll often end up paying more than you need to.
Take time to do some research in the weeks leading up to your renewal to find ways to cut the cost of your insurance. To help you with this, here are some of our top tips to ensure you get the best possible price.
Know your mileage
When you come to buying insurance, you’ll always be asked for an estimate of your annual mileage. The majority of us will simply whack in a rough guess but this can later become a hindrance.
The more miles you rack up, the higher the risk you are to lenders, thus increasing your premium. To get an accurate picture of your annual mileage, most insurers have a calculator online, but you can also check your last MOT certificate and compare it to your car’s current reading to measure the difference.
Additionally, if you can find ways to reduce your mileage, you’ll reduce your costs further. For example, consider alternative modes of transport on occasion and avoid any unnecessary trips.
Follow safer driving practices
If you consider yourself to be a great driver, why not look into a policy that rewards you for this? Telematics insurance is a special type of policy that uses technology to monitor your driving performance. Essentially, the better your drive, the better the deals you’ll be offered on your premiums.
This isn’t just a case of keeping both hands on the wheel, however. You’ll need to stick to every speed limit, brake gently, accelerate gradually, and drive during reasonable hours of the day.
Shop around for quotes
Not happy with your renewal quote? Think you can find a better price? Consider utilising a comparison website to scout the best deals for a huge array of providers. Different sites can even have different prices, so it’s advised you use at least two.
While these use a soft search of your credit file to gather quotes for you, it doesn’t affect your credit score. If you do find it difficult to find something within your price range, you may also enlist the help of a broker.
Pay your insurance in one sum
A large number of us Brits choose to pay our premiums off in monthly instalments so the damage appears less. But doing so can increase the amount unnecessarily and unbeknownst to you, as essentially you’re taking out a loan.
If you can afford to pay your policy in one go, you might find yourself saving 20% or more depending on the provider. Alternatively, you could cover the cost using a 0% credit card but you must be able to pay off the balance before the interest-free period hits.