How to Get Cheaper Car Insurance

With so many different car insurance companies all looking for your business, if you shop around you can make real savings. Look around before you renew your policy each year, because the company you were with may no longer be the one with the best deal.

Normally you will find that the more expensive policies give you greater cover. You might not need the very highest levels of cover if your car isn't worth a lot and you don't really use it that much, but getting enough cover and balancing any savings against any potential shortfalls if you do have to claim is very important.

For instance, would you be able to manage without a car if yours was stolen or out of action while it was repaired? In that case you might need an insurance policy which included hire car costs. If you would get by ok without a car for a while, then by doing without hire car cover you can get much cheaper insurance.

Breakdown cover is an important part of many policies, but it can mean your insurance will cost a lot more, particularly if that cover extends beyond the UK to include other European countries. If you don't really need it, or have found separate breakdown cover cheaper elsewhere, this can help you to get a lower car insurance premium.

Find out whether you can get money off if you pay in one lump sum rather than by monthly direct debit, some companies will give you a discount. Tell your insurer if your milage decreases for any reason and this will save you pounds. If you get a new job that is closer to home, your new job title as well as your milage could lead to savings.

Think about increasing the excess on your policy to improve your premium. Do be realistic about what you could actually pay though if you did need to make a claim. For a small saving on your insurance you do not want a policy that will not protect you from financial hardship if your car is written off.

If your car is damaged, you would usually have to get quotes for the repairs and your insurer will then examine the quotes and authorise the work. This can be time consuming, so some insurers have garages that they work with reguarly who they will send you to if you need any repair work. This faster service can mean higher insurance premiums.

Finally, if you are buying your own insurance for the first time but have been a named driver on someone else's policy, some companies will take this time into consideration towards a no claims bonus. Check whether your no claims bonus is protected against a limited number of claims. You may pay slightly more for this protection but losing your no claims bonus would lead to a steep price rise the next time you had to insure.