Incredibly, 70% of drivers simply take the easy option of renewing their existing insurance policy even if they are buying a new car. But there are several ways to make your money go further…
Steps to reduce your current premium…
If you renew your car insurance year on year with the same insurer, then now
is a good time to get to grips with your insurance options and search for other,
more competitive alternatives. A driver’s profile will constantly change
(your age, occupation, address, type of car); these factors will affect your
premium and the type of insurer capable of offering the most competitive product
and price.
Follow these steps to save yourself up to several hundred pounds on your car insurance.
1. Start your search and preferably buy your car insurance online:
Many companies offer discounts when you buy online, although the online purchase
option is not available to every driver – it will depend on your profile
and requirements. Visit the Tiscali
Insurancewide Motor Wizard to find insurers who are most suitable for your
driver profile.
2. Shop Around: When you buy car insurance the golden rule
is to get several quotes, so you are able to make sensible, relevant comparisons
on price and level of cover provided.
3. Don’t modify your car: Modifying your car will affect
your premium. Manufacturers work closely with insurers so that a particular
model of car can be insured to a standard. If you modify the car then the factors
on which your premium has been based will have changed and the number of insurers
that will insure you is cut dramatically.
4. Drive Carefully: Careful drivers who build up a history
of no claims will be rewarded with lower premiums so it pays not to treat the
roads as a race track!
5. Security: Fit an alarm or an immobiliser or use a steering
lock. If you have a garage use it to store your car, don’t just leave
it on the road. If you have a detachable stereo make sure that you remove it
from the car.
6. Voluntary Excess: You can reduce your premium by agreeing
to accept a voluntary excess. This is the amount you agree to pay in the event
of an accident.
7. Low mileage discounts: If your annual mileage is low, inform
your insurer as this can cut the cost of your insurance by 15%. Using your car
to commute to work will make your premium more expensive.
8. DON’T LIE: When you sign a contract with an insurer
it is entered in ‘utmost good faith’. If you lie this can allow
an insurer to refuse payment in the event of a claim. During the policy period
you must keep the insurer up to date with any information which may change the
premium you pay. For example, if you change address then you are obliged to
inform your insurer because your car may be more or less liable to damage, or
be involved in a crash. If you are caught speeding and points are applied to
your licence you must inform the insurer. Any modifications to the vehicle must
be reported to the insurer. Failure to inform your insurer of any updated information
may result in your policy being deemed invalid.
9. Don’t automatically buy comprehensive insurance: If
your car has a low value you can save a third off your premium by insuring your
car for Third Party Fire & Theft.
10. Pay your premium in full each year: Many insurers charge
a high APR if you pay monthly.
11. Don’t Buy a High Performance Car especially if you are under
30: If you drive a sports car then expect a high premium, especially
if you are male and under 30. Insurers will take numerous factors into account
including your age and the group rating system of the vehicle to be insured.
Most family cars fall into groups 6 to 12, unless they have high-powered engines.
The different groups available range from group 1 (the lowest) to group 20 (the
highest).
If you are buying a new car…
The potentially huge cost of car insurance is often overlooked in favour of
focusing on the model, the engine size and colour of your new car. Yet a few
simple questions to your car dealer might encourage you to think more carefully
before you buy. Ask about the insurance classification of the car, for example.
Cars are currently classified in 20 different bands, with the most expensive
or rare cars in the top brackets.
The dealer may offer you a period of free insurance as an incentive to purchase. Be sure to check the policy details and what your premium would be after the free period. Although it is hard to predict running and repair cost, check the manufacturer’s figure for mile to the gallon (allowing for an element of inaccuracy). You should also enquire as to how often the car will need servicing and what the re-sale value is likely to be.
The Highest Group Cars (Group 16-20)
- BMW 5 Series
- Aston Martin
- Audi TT
- Ferrari
- Porsche 911
- Alfa Romeo
- Jaguars
- Subaru Impreza
- Land Rover Range Rover
- Jeep Cheroke
Middle of the range (Group 8-12)
- Ford Mondeo
- Peugeot 307,405
- Renault Megane
- Vauxhall Astra, Vectra
- VW Passat
- Audi A3/A4
- Toyota Corolla
- Land Rover Freelander
- BMW 3 Series
The Lowest Group Cars (Groups 1-4)
- Toyota Yaris hatchback
- Vauxhall Corsa hatchback
- Peugeot 107, 206
- VW Polo
- Skoda Fabia, Felicia, Octavia
- Renault Clio
- Ford Fiesta, Focus, Ka
- Fiat Punto
- SEAT Ibiza
Get a free, no obligation quote or buy car insurance online now.
