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Reduce Car Insurance Costs!

You really need to shop around for car insurance. It's incredible how different the costs can be from different companies. We've had quotations where one is over double the other. Same car, same driver, same insurance cover. I suppose they work on the principle that some people just don't check.

There are so many car insurance companies now that to find the best one for you is going to take a bit of leg work around the Internet.

Whoever you choose it's good idea not to make your final decision online, but to phone through as well. You may find some slight variation, or they can verbally ask you something which may be relevant to the final price.

Never Accept Insurance Renewal Quotes

Having shopped around and found the best price, a year later you get the renewal notice and they hope you just go for it. Why they think you will just accept a 50% price increase is a mystery to me.

Check around and then contact them to explain you won't be renewing with them because another company is offering the same level of cover for less. Most often they will reduce their price.

Insurance Comparison Sites

We've all seen the TV adverts for companies that compare prices between the different companies to get you the best deal. Surprisingly we've never got our best deal via one of these sites but still worth giving them a go. They do at least give you an idea of the general cost.

Which Insurance Company For You?

Different companies specialise in different markets. Some look to service young drivers, some older drivers. Some are geared up for cheap older cars and some for your Ferrari. I suppose if you own a Ferrari you won't be reading this though!

We find 4 companies worth checking and usually end up swapping between them each year. Churchill (Oh yes!), eSure, DirectLine and for the last 2 years Tesco have won for us.

Reduce Your Car Insurance Cost

These tips may seem obvious, but there might be a cost-cutting trick you missed.

  • Do you need fully comprehensive insurance if you have an older less expensive car?
  • Increase your excess. If you are a safe driver, then it can be worth having a £200.00 excess rather than £100.00
  • If possible, drive less miles. Less distance means less risk. Don't ever lie to an insurance company though. It's not worth saving a few pounds to find your cover is invalid.
  • Keep your credit in good order, some insurance companies look at this.
  • Maintain a clean driving licence - Stay out of trouble.
  • The more alarms and other safety equipment ie airbags, the less it could cost
  • Have a low profile car, not one that's going to get stolen more!
  • Always ask about further discounts. It’s worth calling and saying "You're not far off on price, is that the best you can do?" They'll say yes but when you say "OK, I'll think about it" they often come back with a sweetener.
  • Avoid direct debit or credit, it'll cost you somewhere. Best get the finance out the way for a year.
  • If two of you drive (husband and wife) then it can be worth checking if the rate is cheaper by making the other partner the prime driver.
  • Many insurance companies offer deals on breakdown services. Worth checking out and factoring in.
  • Finally, drive safely. You can protect your no-claims bonus if the worse comes to the worst.

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