Let’s face it, no one in particular enjoys paying for insurance, whether that’s life insurance, home insurance or indeed car insurance. To many it is a necessary evil and, of course, if you want to drive it is more than that – it’s a legal requirement. According to the Motor Insurers Bureau as many as four per cent of drivers are uninsured, leaving them open to criminal proceedings, as well as potentially personally liable in damages in the event of an accident.
It is little wonder then that when it comes to choosing insurance we are keen to find the best deal possible. The following are a few of our top tips if you are looking to find discounts on insurance for your car
Before you choose your new car insurance policy make sure you get quotes from a number of insurers in order to compare costs. You may be surprised at how premiums can vary. If this sounds like a lot of work, do not be put off. There are many useful resources and comparison sites on the internet that make checking out insurance costs simple. Alternatively, if you really do not have the time or inclination to research the market yourself and want a compete hands-free option, why not ask your local insurance broker to look around for the best possible deal? They will scour the market and come up with the most competitive quote for your circumstances
Agree A Larger Excess
One simple and effective way to reduce your insurance premium is to agree to a larger excess on your policy. The excess – or self-insured amount – is the sum that you agree to pay towards the total cost of any claim. So, if there is an accident which results in total damages of £1000.00 and your policy has an excess of £500.00 , you have to pay the first £500 , meaning your insurer’s liability is restricted to the remaining £500. As the insurer’s exposure is limited in this way, they are able to offer you a more competitive quote.
Consider Changing Car
If you have looked around and are still not able to obtain what you consider to be a reasonable rate for your annual vehicle insurance, then it may be time to take more drastic action. The reason you are being quoted a high premium may be because of the car you are driving. Most motor insurer perceive larger-engined cars with higher performance capabilities as a potentially greater risk, and this is reflected in the premium they charge. By changing your car for a less powerful model you may be able to make substantial savings.
Consider Paying Your Insurance In A Lump Sum.
Most motor insurers will offer you the opportunity to spread payment of your annual premium over a number of months. However, as with any credit agreement, they will levy a charge for this arrangement. They are obliged to disclose the annual percentage rate (APR) payable in the documentation they send you, but typically you might expect to pay around 15-20% for the privilege of paying by instalments. If you have the surplus cash available at the time your policy is due for renewal, you would be hard-pressed to earn even a quarter as much interest if you deposited this amount with a high street bank, so you could end up making a reasonable saving by paying the premium in full.