Each year motorists waste millions of pounds on car insurance by failing to shop around for a better deal and end up paying on average £141 more.
Ian Crowder of the AA says, “You might get a good deal or special discount when you first take out your policy, but the renewal premium will often be a lot higher.”
On average driver loyalty to insurance companies lasts for 2.7 years for the over 70s it’s an average of 3.8 years.
Steve Sweeney from Moneysupermarket.com said, “Loyalty doesn’t pay, but it is alarming that so many motorists are prepared to waste their hard-earned cash.”
Searching for a better deal doesn’t have to be hard work using comparison websites can do that for you. Ensure the comparison is for like for like insurance, otherwise a cheaper deal could mean less extensive insurance cover. Some of the main comparison sites include; Moneysupermarket.com, Gocompare.com and Confused.com.
Comparison sites do not cover all major companies such as Direct Line. By applying direct to an insurer, bigger discounts may be available.
Premiums can be reduced by cutting out extras such as windscreen cover and a courtesy car. Think carefully before opting for third party cover, in some cases comprehensive cover for young drivers has been cheaper than third party cover.
By agreeing to increase the voluntary excess payable ie the amount you pay towards a claim, can reduce your annual premium.
When paying for car insurance companies will offer a monthly payment option. This can work out expensive as a high rate of interest is charged adding up to 10 per cent on your premium.
Save up to £50 by simply by cutting 5000 miles off your regular annual mileage.
Approved car alarms, an immobiliser and a tracker device can help to reduce premiums by approximately 5 per cent, as the car is considered a lower theft risk. Use off street parking to get another discount.
Careful driving can also earn discounts. Drivers with speeding convictions pay more. New drivers who qualify for a Pass Plus certificate can save up to 35 per cent on their first premium.
Having others insured on your car will add to your premium whereas named drivers will work out cheaper. By adding young drivers on your policy will be costly.
Drivers who have been claim free for at least five years will have built up their no-claims bonus leading to discounts on their premium. It is worth protecting this but check to the insurer’s definition of a protected bonus.
Always tell the truth when getting car insurance. Lies will cost you dear in the long run as the company can refuse to settle a claim and cancel your policy, in some cases this can lead to harsher penalties.