Published: 13/02/2020 By Sarah SchendelCar insurance costs are expected to accelerate due to a rule change to compensation pay-outs, so avoid being hit hard in the pocket by knowing when the best time is to bag the cheapest deal.
Why do you need car insurance?
Having car insurance is a legal requirement and with the right level of cover, provides financial protection in the event of your vehicle being damaged. It will also provide cover for injuries to other drivers, passengers or pedestrians, and their property. Start by obtaining quotes from a variety of companies. Just because one company is offering you a lower rate does not mean it is the lowest rate on the market. Make sure to plug in the details you collected on your current coverage and see what is being offered. Accidents happen, so it’s reassuring to know that you’re covered financially if you’re involved in one. Remember to also compare companies who aren’t on comparison sites.
The three types of car insurance are:
There are three main types of car insurance - comprehensive, third party, and third-party fire and theft. Of these, comprehensive offers the most complete cover as it protects your car as well as other people's property. Third party insurance is the minimum legal level of cover required to drive a car. Comprehensive is the highest cover and can sometimes be the cheaper option depending on the company!
Is it better to stay with your existing car insurance company?
The question of whether or not it’s worth staying loyal to your car insurance company really depends on your individual situation. It’s always a good idea to shop around regularly and get some quotes – there’s no obligation to obtaining insurance quotes and it lets you know where your current rate stands in comparison to the other rates that are currently being advertised.
When your insurance is due for renewal, it’s really worth your while timing it correctly as most insurance companies’ renewal costs fluctuate depending on how long you leave it to renew before your existing policy expires. Not many drivers are fully aware that if you renew right at the end of your policy, the insurance company may see you as a high risk driver for leaving it so late to renew and may bump the renewal cost up to its highest level. So the most cost effective way in which to renew your policy is to renew between 20-26 days before your policy expires according to money saving expert Martin Lewis (www.moneysavingexpert.com) This is when you should receive the cheapest renewal price which can be substantially lower than leaving it towards the end of your policy.
Why should you consider changing your car insurance company?
Simple - to save money!
Loyalty doesn’t always pay off, so it’s to your advantage to spend a little time scaling the comparison sites. There are incentives for new customers in addition to your policy likely being cheaper, and it’s always worth a haggle! Play one off against the other, but stay truthful. It’s also advisable to consider what optional extras the companies are offering i.e. legal cover, courtesy car cover, windscreen cover and breakdown cover. You can also adjust the amount of voluntary and compulsory excess you would pay too in the event of an accident, giving you a higher or a lower policy premium cost. The choice is yours.
Multicar Policies: (Courtesy of moneysupermarket.com)
What is multi-car insurance?
A multi-car insurance policy can usually cover up to five cars and offers all the same benefits as regular car insurance. The only difference is that the same policy covers more than one car and insures will give you a discount for insuring multiple vehicles with them. The same logic applies when it comes to multi-car breakdown cover – with discounts being offered to those who purchase cover for multiple vehicles under the same policy.
Why choose multi-car insurance?
As multi-car insurance provides cover for up to five cars, it can be a wise option for households with more than one vehicle. One policy provides all the paperwork needed for each car and the renewal date is the same. Some insurers offer discounts for every additional car that you add to the policy.
Who could multi-car insurance work for?
Families with more than one driver, couples who have a car each or a person with more than one car.
Some insurers will offer cover for drivers living at different addresses – like a child at university, for example – but not all policies support this.
Top Tips When Renewing Your Car Insurance:
- If you decide to change your insurance company (if your current insurance company won’t price match) then it’s still best to do your research within 20 – 26 days of the expiration date of your policy. If you decide to stay with your current insurance company, whatever you do don’t accept the policy renewal without discussing a reduction in the cost! They will contact you about a month before the policy expires and the price is likely to be much higher than last years and with so many comparison websites offering new customer incentives we would all be crazy not to check out any brand-new deals rather than auto renew, otherwise it could unnecessarily cost us hundreds of pounds more! We may feel like being loyal to our car insurance company, but they have no reason to be loyal to their customers, it’s all about the money!
- If you want to stay because they have excellent customer service and are very helpful, all you need to do is to obtain some other cheaper quotes. Just have all the details in front of you and ask if they will better the lowest deal. If not it’s definitely time to change!
- For younger drivers, it may also be cheaper to add an additional experienced driver to your policy as the insurance company will assume that the additional driver may be driving the car as well as you, which implies you to be at a lower risk to them if you’re not driving the car as much.