5 Steps To Finding The Cheapest Motor Insurance Quote Online
Every year consumers pay more for their car insurance than they have to either because
they are unaware of the steps they can take to control the cost of cover or they don't have the time to take action. In reality there's a lot you can do that takes very little or no time at all and could mean big savings for you at renewal.
Here's just five of the many ways you can save time and money:
1. Don't Pay Premiums Monthly
Most car insurance companies charge a "handling fee" for customers who pay monthly rather than upfront. This fee is actually a form of interest and can be extremely high: as much as 24% in many cases. Even if you can't afford to pay the full amount up front, consider whether it might be worth putting it on an overdraft or credit card. You'll only pay interest until you've repaid it, and even if it takes all year you'll probably be paying a lower interest rate.
2. Be Excessive
There's some basic logic to agreeing to a higher excess fee in return for cheap car insurance premiums. Simply put, because the average motorist is more likely to go through a year with a claim than without a claim, they are more likely to get the benefits of lower premiums without the cost of an excess. However, if you do need to make a claim, you'll have to pay the higher excess and will be out of pocket. The best way to deal with this is to look at the savings you'd make and the potential extra expense, then consider how likely you are to make a claim. In most cases, the higher excess will look the better value option.
3. Shop Smart, Shop Online
Although car insurance price comparison websites can certainly help to find good deals, not all of these sites quote the same offers and some may give weight to selected insurers. Take the time to check at least two, and preferably three sites to make sure you get the best deal. Remember though that some leading car insurers don't allow their policies to be quoted on these comparison sites so be sure to get quotes from them too.
4. Be Honest
This is a classic example of short-term vs long-term thinking. It is true that fronting (falsely putting down a "safer driver" such as a parent as the main driver rather than the "risky driver" such as a teenager who actually owns and uses the car) or giving a false address will mean the premium you pay is lower. The problem is that if you do have to make a claim, which is why you pay premiums in the first place, there's a good chance it will be rejected, meaning you've paid for nothing. You'll also then pay the costs of dealing with any damage or injury, and could face fines or worse if prosecuted for fraud. What's more, you may find that future applications for insurance are either rejected or attract a substantial premium rating making it harder to shop around and find competitive cover.
5. Fit An Alarm
In most cases, an alarm costing in the 25 region will be enough to get you a two or three percent discount on your car insurance. That might seem paltry, but given the average premium is the painful side of 500, the alarm will usually pay for itself within a couple of years. And, even leaving finances aside, it also means your car is less likely to be broken into or stolen, which will save on hassle and stress.
Apply just a couple of the tips above and you could save 10%-20% on your next car insurance premium. Apply them all and the savings could be even more. The key is to not assume that your current insurer will be as competitive as they were last year or offer you anything like a good deal at renewal time.
by: Simon Christopher
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