Although car insurance can be highly valuable for your peace of mind and could give you some much-needed financial relief, for example, if you suffer a personal injury in a car accident, it can also be very expensive. That is why, if you have car insurance,it’s a good idea to attempt to reduce the amount that you regularly have to pay for it where possible. Here are a few tips to help you to do just that.
Don’t accept a renewal quote
It is often not a good idea to just accept a renewal quote from your existing insurer, even if you have built up a tidy no-claims bonus. This is because insurance businesses rarely give financial perks to existing customers; on the contrary, they often offer large discounts to potential customers and higher premiums to existing customers for exactly the same cover. Protest by voting with your feet.
Avoid making small claims
It is probable that if you claim anything up to £500 on your car insurance, at renewal you will have to pay a higher premium for the following year’s insurance. It is even possible that an insurer could opt not to cover you at all if you have made a certain number of claims over the previous year. Hence, you should avoid making any small claims unless you feel that it is very important to make them.
Indicate your precise occupation
Insurers can often charge very different amounts to people simply due to their occupations. Journalists, estate agents, sales reps and entertainers for example, are often charged highly. In many instances, people can save money on their premiums if they are more precise about their occupations when applying for car insurance (depending on their occupation). Furthermore, it is important to ensure that you are always honest on insurance forms, as any future claims that you make may be invalidated if you give inaccurate or insufficient information.
Don’t modify your car
Roughly half of all car insurance companies will refuse to cover a considerably modified or customized car. Those that do will often charge more for the insurance.
Add another driver onto the policy
Strange though it may sound, you can sometimes reduce the total premium simply by adding another driver with a clean and safe record onto the policy.