16 Helpful Tips to Get the Cheapest Car Insurance

16 Helpful Tips to Get the Cheapest Car Insurance

16 Helpful Tips to Get the Cheapest Car Insurance

It seems like the cost of car insurance premiums is constantly rising!  Running a car can be very expensive when you consider the price of gas, the expense of maintaining the vehicle and paying those insurance premiums.  Fortunately there are a number of clever tactics that can be used to obtain the cheapest car insurance premiums possible.  This article will go over 16 clever ways to ensure you get the cheapest car insurance premium possible.

Look at the cost insuring the car before you buy it

The smartest time to look at the cost of car insurance is before you actually purchase the vehicle you are interested in.  You can visit a number of insurance companies online or use online comparison tools to check how much the car you like will cost to insure.  If it is a private sale, you can even use the registration number of the car when getting the quote from the insurance company.

Avoid cars with high performance modifications

Including the cost of any high performance car modifications in the insurance will add to your premiums.  So while many modifications can look good, they can be very costly to insure.

Avoid cars that have large engines, turbo or have sports in their name

Any cars that are capable of extreme speeds will cost more to insure because the insurance companies knows those kinds of cars are more likely to be involved in a crash.

Get additional driving skills

This one works for young drivers especially — gain some additional qualifications and tell you insurance company.   Programs like “Pass Plus” can give insurance companies some additional certainty that the young driver has basic skills and is less likely to crash.

Use Online comparison tools

With the advent of the Internet, comparing policies is incredibly easy.  You no longer have to walk to an insurance broker to get a quote, you can get a dozen quotes in 10 minutes via insurance comparison websites. 

Be sure they take into account any special circumstances you have or discounts you are eligible for.  To obtain the very cheapest insurance it’s usually important to negotiate with your insurance company, so the comparison tools should be considered a ballpark figure.

Check for discounts

Ask your insurance company about every kind of discount they offer.  Insurance companies offer many types of discounts including: discounts for retired people, army veterans, single mothers, low income families, for loyal customers and more.  Make sure you aren’t missing out on any savings!

Compare renewal costs to new policy costs

Some insurance companies offer fantastic deals to attract new customers, and current customers sometimes miss out.  If you spot a deal for new customers that you didn’t receive as an existing customer, simply ring the insurance company.  Demand they give you the deal — you will usually find them very apologetic and helpful because they want to retain you as a customer.

Pay yearly, not month

You can receive some hefty savings on car insurance premiums by simply paying it annually.

Drive carefully and avoid getting any traffic fines

One of the worst things you can do as a driver looking for cheaper premiums is to get a traffic fine, or worse still a conviction for a traffic offense!  Insurance companies will know of any traffic infringements you are involved in, so always drive carefully!

Avoid claiming for small bumps and scratches on your car

If you have a small fender bender that only damages your car, reconsider claiming it.  If it is minor damage to your vehicle it might only cost $500 to repair, however if you claim it your excess may be $300, then on top of that your premiums might be higher for the next 5 years.  You will lose any “no-claim” bonus that you had, and you will be paying higher premiums for a few years — Insurance companies don’t forget.

Use multi car policies

If a number of people in your family are driving, for example your two teenage children have cars, you should look at multi car policies.  You could get a better deal if you insure 3 or 4 cars at once.

Drive Less

Some companies offer discounts if you can demonstrate you rarely drive your vehicle and it is garaged in a safe location most of the time.

Pay as you go insurance

“Pay as you go” insurance uses telematics technology to track your car use and give you cheaper insurance based on that usage pattern.  The devices track things like including total miles traveled, speed and trip distance (long trips or short trips).  These devices are becoming more complex and are starting to track things like deceleration (braking speed) to evaluate your driving ability.  If you are proud of your driving record, you don’t speed and you don’t drive regularly, pay as you go insurance could save you a lot of money.

Increase your excess

The simplest way to obtain cheaper premiums is by increasing your excess, something that can done by emailing or calling your insurance provider.

Do you really need theft coverage?

Some people tend to buy theft coverage or premium insurance for piece of mind.  However if you own an aging car, you should consider the declining replacement cost of the vehicle.  Comprehensive insurance may only be a sensible decision for the first 8-10 years of owning a vehicle. If your car is rarely left on the street and usually secure in your locked garage, you should also reconsider comprehensive insurance.

Cut out optional extras from the policy

There may be some optional extras on your insurance policy which the insurance company includes without consulting you.  You may be able to remove certain aspects like free hire car rental after car theft, which could save you some money.

So there you have it, 16 simple tips to get cheaper car insurance premiums.  The key is to demand more from your insurance company, tell them about your specific circumstances and get the best deal possible!

Pay As You Drive Car Insurance Explained

Pay as you go car insurance

Pay as you go car insurance

“Pay as you drive” insurance has become more prevalent within recent years due to large advertising campaigns touting the money saving potential of this form of car insurance.  Within the insurance industry these kinds of policies are referred to as “usage based” policies.  They place more emphasis on your usage of a vehicle to determine what premium you should pay for the policy.

Many people are interested in pay as you drive insurance but don’t understand exactly how it works.  This article will look at the basics of this kind of car insurance policy and help you understand if you should purchase it!

These kinds of policies often utilize something called “telematics” to determine car usage.  Telematics deals with technologies that are capable of recording and reporting how far your car travels, what speeds it travels, how long each trip is and other information which you agree to share with your insurance company.

Telematics help an insurance company build a very detailed risk analysis profile from your car usage and driving style.  The devices can also record data like car acceleration and car braking speed, which the insurance companies can use to determine if you are a “safe” driver.  That more detailed risk analysis allows them to offer you lower instance rates if you drive your car less than the average person.

In the United States over 1 million cars have these devices fitted and that number is growing quickly.  Many of those cars are fleet vehicles that have the devices fitted so companies know where their assets are located but the insurance industry is pushing hard for customers to use these devices.

How much can you save?

Essentially it comes down to how far you drive, how frequently you drive and how safely you drive.  If you drive daily the savings might be limited because your vehicle is still regularly exposed to all of the dangers of being on the road.  If you are a safe driver who is not on the road every day, you can expect savings of between 25-50% compared to a standard insurance policy.

Because the technology is new, many companies are offering cheaper insurance premiums just to install the device, so there are savings to be had there as well.

Telematic devices are also becoming more advanced and will be capable of storing more detailed driving data.  At the most basic they measure speed, time of the trip and distance of the trip.  However the more advanced units can measure breaking power, acceleration speed and location to ascertain what kinds of traffic the vehicle is exposed to and how safely you are driving. 

Not every insurance company will use the more advanced capabilities of telematic devices and the precise capabilities of the installed device will be detailed in the insurance policy.

Are there any drawbacks?

Insurance companies claim that these devices are only designed to reward good drivers, so there are no penalties attached if you install one and drive badly.  However it is unknown if it will always remain that way and insurance companies might eventually use them to determine which drivers are high risk.

If they do eventually start using the devices to build a record of your driving ability, and that information is sold onto other insurance companies, it could mean an increase to your premiums.  However it is important to note that insurance companies are not at that stage yet and it may not be legal for them to do so.

There are also some concerns about the security of these kinds of systems also.  Every computer system has vulnerabilities, and some of these telematic devices are capable of tracking your position with GPS.  Even though it has not happened yet, there may come a point when the devices or systems that send data are compromised.

The bottom line

If you are a safe driver and drive infrequently pay as you drive insurance could save you a lot of money.  Telematic devices are becoming more popular and help insurance companies provide better coverage tailored to your particular driving habits.  If you are interested in saving money, it’s worth taking a look at these kinds of policies as soon as possible!

Do You Know These 9 Common Car Insurance Myths?

Car Insurance Myths

Car Insurance Myths

Insurance contracts can be very complex and there is often a great deal of fine print involved.  It’s no wonder that many people end up learning what they know about car insurance from other consumers.  Unfortunately a lot of the information that gets passed around about car insurance is actually incorrect.  This article will highlight some of the most common misapprehensions about car insurance!

Having a bad driving record is the only factor insurance companies consider

There are  actually a number of variables that go into determining how much your insurance premium will be, in addition to your driving record.  Your age, how many years you have been driving, the age of your vehicle, the place you live and even your credit history can go into determining your insurance premium. 

Every insurance company has their own formula for calculating risk and that is one of the reasons why it is always a good idea to shop around for car insurance.

Having a good driving record will bring down my premium

You might have 20 years of good driving under your belt and expect your premiums to go down.  However if you continued to drive the same model car that you did 20 years ago, your premiums might go up despite the good driving record.

The color of your car influences insurance costs

Many people incorrectly believe that a red car will cost less to insure because it is very easy to see on the road or that a black/grey car will cost more to insure because it blends in with the road.  The reality is car insurance costs are not affected by the colour of the car.

Little cars are cheaper to insure

Smaller vehicles tend to take more damage in crashes, so are easier to write off.  For that reason small cars are not always cheaper to insure. Some cheap smaller cars might not have the safety equipment of larger vehicles either, for example, ABS braking systems.

If I still owe money on my car loan, the insurance will pay for it

Some people incorrectly believe that if a car is written off after an accident, the insurance company will give you cash equivalent to the amount you still owe on the car.  Unfortunately this is not true, and the insurance company will only pay you what the car was worth.

Because my car is old it is less likely to be stolen

On the surface it seems logical that car thieves would try to steal more valuable newer cars.  However older cars tend to be targeted because there is a market for parts for those cars and the security on older cars is typically weaker than a new car.

Insurance companies can cancel your insurance at any time

Without a compelling reason (for example fraud), insurance companies must fulfil their end of the insurance contract.

If your car is stolen, the contents are covered

Unfortunately anything inside the car when it is stolen are not covered by insurance.  However if you have a good home and contents insurance policy they might provide coverage if one of your personal items is lost when the car is stolen.

Drivers of fast and expensive sports cars pay more for insurance

This is not always the case because there are various factors at play when determining the cost of your insurance premium.  A 40 year old person who drives a sporty Mercedes coupe but has an impeccable driving record might end up with cheaper premiums than someone under 25 who has had a few crashes and drives a Subaru WRX. 

So we have checked out some of the most common car insurance myths.  Just remember, any time you are shopping for car insurance, it always pays to look around for the best deal!

10 Ways For Retirees to Save on Car Insurance

10 Ways For Retirees to Save on Car Insurance

10 Ways For Retirees to Save on Car Insurance

Most people see a significant change to their driving habits once they retire.  Instead of driving to work everyday, they usually end up driving irregularly.  Usually the driving involves a trip away or a trip to visit friends.

For most retirees, that means they drive less often than they used to.  Why should they pay the same level of insurance as someone who is constantly on the road?

Here are some tips to help retirees save on their car insurance.

Look for Limited-Driving Discounts

Many companies offer discounts that specifically target older drivers.  The fact that your driving is less frequent than a younger person should immediately obtain a significant discount.  Make sure that your insurance provider is giving you this discount and if not, call them about it.  Inform them of your retiree status and tell them about your driving habits.  If they don’t provide a discount, change providers.

Collision Coverage

If you have an older car you might consider completely removing your collision coverage.  When you are driving less, you might be perfectly happy with your old car that is not worth much money.  If it is only worth a few thousand dollars, there isn’t much point insuring it.

Increase Your Collision Deductible

By increasing your deductible you can save hundreds of dollars.  You won’t be driving much and most older drivers take a great deal of care on the road.  It is unlikely you will be involved in a crash so increase the deductible.

Install a Telematics Device

A telematics device keeps track of how often you drive your car, how far you drive and how fast you go.  It allows insurance companies to offer better value on your insurance policy based on your driving habits.  This can be a big saving for people who don’t drive very often.

Keep the Kids off Your Policy!

Young people who don’t have a proven driving record can be extremely expensive to insure.  Keep your grandchildren off you policy!

Use Your Good Track Record to Negotiate

If you have decades of unblemished driving, make sure you impress your insurance company with it, then ask for another discount.  If they will not reward you for that sterling driving record, find a company that will.

Loyalty Discounts

You probably have years of car insurance through the same company.  Ask for a loyalty discount, even it’s not mentioned in their brochures.  Insurance companies like to hang onto customers who have good driving records and who have been with the company for many years.

Take a Driving Safety Course

This tip applies to anyone who wants to obtain cheaper insurance premiums.  Many insurers will offer you a discount if you have successfully completed a driver’s safety course.

Buy a Car That is Cheap to Insure

It might be nice having a fast sports car to show off to your friends.  But when you retire you won’t be speeding around like a hoon anymore.  Sports cars with large engines can be more expensive to insure.  Consider buying another car that focuses on safety features instead of speed.

Keep Your Car in Great Condition

Even you have an older car, make sure it is well maintained.  Some insurance policies have clauses that limit coverage if your car causes an accident, due to mechanical failure.  Read the fine print and make sure your car is in great shape.



How Gender Affects Car Insurance

Women Get Cheaper Car Insurance

Women Get Cheaper Car Insurance

Despite women getting paid less than men in the United States, there are some benefits for being a woman, particularly when it comes to car insurance!  Most insurers charge women less for car insurance.  Many people would be curious as to why, so here are some reasons why women get cheaper car insurance.

Men Choose Faster and Riskier Cars

Men are more inclined to choose a car that is faster than a car that has the best safety features.  The faster the car is, the more likely it is that the driver will be involved in a crash.  Fast cars can be harder to control and fast sports cars are more likely to be stolen.  The drivers of these cars are more likely to be involved in risky activity like speeding or drag racing. 

Men Crash More

Despite what some chauvinistic males suggest, men crash cars more than women.  They are more likely to speed than a woman and more likely to drink drive.  Even though only 11% of the adult population is made up of males between the ages of 21 and 34, they are responsible for 32% of all drunk driving episodes (http://www.drunkdrivingstats.org/menversuswomendrunkdrivingstatistics.html).  Men are also more likely to speed, increasing their crash risk substantially.

Men are more likely to be involved in other forms of risky driver behaviour as well. They are more likely to drive like hoons, brake quickly and are more likely to be involved in road rage events.

Men Are Fined More
Men are more likely to be ticketed for speeding offences than women.  As a result of this, their insurance premiums will be higher.

Women Drive Less

Statistically, women are less likely to be in the drivers seat and they spend less hours per week driving.  The less time spent driving, the less risk of a crash.

Women Buy Cheaper Cars
Men are more likely to spend substantial amounts of money on an expensive car.  Generally, the more expensive the car, the more expensive the insurance costs.

Some Statistics

The statistics are very compelling.  According to the DMV:

  • 71% of all car accident-related deaths in 2012 were male.
  • Men are 50% more likely to die in a car crash (2008 figures)
  • Men drive under the influence of alcohol more often.  In 2012, 38% of fatally injured male drivers had BACs of over 0.08%, compared to 20% of fatally injured female drivers.
  • Women are more likely to use seat belts.  88% compared to 84% for males
  • For all fatal accidents, 23% of males were speeding at the time of the accident.  14% of females were speeding (2012 figures).

It is estimated that men pay as much as $15’000 more for insurance over their lifetimes, so this is a substantial difference!

What Can Be Done?

There are many ways for men to lower their car insurance premiums.

Detroit Most Expensive Auto Insurance

Detroit Auto Insurance Expensive

Detroit Auto Insurance Expensive

A blog post from insurancequotes.com suggests that Detroit might have some of the most expensive car insurance in the country.   The cost of insuring a car in Detroit came in at a massive 165% higher than the national average.  That makes it the most expensive of the largest 25 metro markets in the USA.  The cheapest was Charlotte, North Carolina, where they pay 43% less than the national average.

Insurance industry experts suggest that population density plays a role in determining which markets have higher or lower auto insurance costs.  Basically, the more people on the road where you are driving, the more likely it is that an accident will occur.  That’s why you wind up with New York and Los Angeles near the top of the list.

Other areas like Miami don’t have the same levels of traffic as New York, but they do have a problem with cars being stolen.  Another factor to consider is the type of cars being driven in the area.  In some parts of Miami there are a large number of expensive luxury cars being driven.   It’s a lot more expensive to repair a ding on a Lamborghini than it is a Ford.

Detroit has it’s own reasons for being so very expensive.

1) It is a no-fault auto insurance state.  Insurers must pay people even when they were at fault in the traffic accident.
2) The state compels insurers to provide lifetime medical coverage for injuries results from auto accidents.

While it costs a lot to insure your vehicle in Detroit, it’s important to remember that many other costs of living are cheaper than comparable metro areas in the USA.  But for citizens of Detroit, it’s enough to make them consider selling the car and taking the bus!

How Traffic Tickets Affect Insurance Rates

Traffic fines and insurance rates

Traffic fines and insurance rates

It’s one of the most common questions amongst car owners – how much will your traffic infringements cost you when you buy insurance?

Well unfortunately even a minor traffic infringement can make a difference when it comes to buying car insurance. The difference is minor in some cases, but in others it makes a surprising difference.

Let’s take a look at the minor traffic violations first.

A person in their 40s with a good driving record can see a 5 percent increase from being caught without a seat belt by police. If the same driver was caught failing to signal for a turn that could bring about a massive 19 percent increase in insurance premiums with some companies! Driving by yourself in HOV lanes could create a hefty 18 percent increase for a driver.

Are you a chronic tailgater? Well that could also land you a 19% increase in your insurance premiums if you are caught by the police. Speeding is even worse with a 15 miles over the limit landing you a hefty 21 percent increase in insurance premiums.

It’s important to note that every insurance company has different penalties for traffic infringements. That means if you have a few fines on record or a criminal offense, it’s more important than ever to shop around for you car insurance.

They increase the premiums because according to statisticians, the more fines you have, the more likely you are to be involved in a crash soon! Your risk profile is increased in the eyes of the insurer.

So the next question would be how long will you carry the penalty forward? Depending on the insurance company in question, you could carry the penalty to your car insurance premium between 3 to 5 years.

Now for the more serious traffic infringements!

If you get charged with reckless driving, that could increase your insurance premiums by over 80 percent! If you are caught driving under the influence, that increases your premiums by a huge 93 percent on average.

However there are ways to avoid the ticket showing up on your record and resulting in these huge penalties. For example a driver can accept a temporary suspension of their license, pay the fines and go into a driving skills program. It is up to the court whether they include a record of the infringement or look at your efforts to improve your driving and don’t put it on. A good lawyer may help there!

Some insurance companies have extremely high penalties when it comes to traffic offenses, so as always – shopp around for your insurance and do your research!

The Most Expensive Cars to Insure in 2014!

The Most Expensive Car to Insure

The Most Expensive Car to Insure

Most people think their car insurance premiums cost too much. Every year it feels like the premium is more expensive. Well to give us all some consolation let’s take a look at the most expensive cars to insure!

Every year Insure.com creates a list of the most expensive cars to obtain car insurance for and usually the list is full of expensive sports cars, but sometimes there are exceptions to the rule. This year the list is full of well known brands including BMW, Porsche, Mercedes and even Nissan.

Most of the cars in this list are capable of truly insane speeds and have truly insance price tags attached to their purchase costs. Well unfortunately for the speed freaks that want to drive these kinds of cars the insurance costs are nothing short of astronomical by conventional standards. It turns out that people who like to drive fast also crash a lot! Insurance companies worked that out pretty early on so pumped up premiums on these speed machines.

1. Nissan GT-R Track Edition $3,169
2. BMW M6 $3,065
3. Mercedes-Benz CL550 4Matic AWD $3,019
4. Mercedes-Benz SLS AMG GT $2,986
5. Porsche Panamera Turbo S $2,970
6. Audi R8 5.2 Spyder Quattro $2,917
7. Mercedes-Benz G63 AMG $2,887
8. Audi A8 L 6.3 Quattro $2,869
9. Jaguar XKR Supercharged $2,854
10. Jaguar XK $2,610

Hard to drive
It also turns out that many of these cars are extremely hard to drive! There is so much power behind the accelerator that an operator can be at face melting speeds in a few seconds and not always intentionally.

The cars are extremely twitchy and everything from steering, braking to acceleration are built for the driver who has lightning fast reflexes and the experience to handle a high powered vehicle. Unfortunately many of the people who are wealthy enough to buy these kinds of cars are not incredibly experienced drivers. Some of the cars have safety features which are designed to tame the speed and handling of the car, but operators can turn them off, and many do to experience the “beast unleashed”. Unfortunately when they go into full racing mode they are actually turning off controls that help with vehicle stability and easier handling.

The vehicle that comes in at number 1 is especially hard to tame. The Nissan GT-R track edition is nicknamed “Godzilla” which should scare you enough if the $115’000 price tag hasn’t already. It has a massive 545 horsepower from a v-6 engine and twin turbochargers. The car is really designed for people who want to take their car onto a racing track once every few weeks, and the various electronic controls help tame the beast and keep it safe on conventional roads. It can reach the 200 mile per hour mark, where even professional racing drivers need to be careful, so the average joe could get into serious trouble very easily.

Most of these cars “feel” stable and easy to drive and that is why some people get into trouble – they become over confident and don’t appreciate how quickly the extra speed can turn into a crash, particularly on roads that are not of race track quality. That’s another one of the issues, the speeds that some of these cars are capable of is primarily for the race track and the quality of roads around most towns and cities is much much lower. A sudden pot hole and that Nissan GT-R that felt stable at fast speeds is heading for a tree.

Repair Costs

It also turns out that repairing expensive and exotic cars is quite expensive! The insurance costs reflect the fact that a simple fender bender in a Nissan GT-R might cost $25’000 in parts, because of the advanced mechanical parts and rare body parts involved. Some components must be discarded because they are not metal that can be reshaped, but carbon fiber which shatters on impact and must be replaced after a crash.

So the next time you balk at the cost of comprehensive car insurance for your vehicle, remember the revheads who are forking out thousands every year for a thrilling and dangerous hobby!

The Extra Benefits of Comprehensive Car Insurance

Comprehensive Car Insurance

Comprehensive Car Insurance

A lot of unexpected and unusual events can occur in the real world and not all forms of insurance are equipped to deal with them. For example, many people who were in London for the riots in 2011 saw massive property damage including their cars destroyed by mobs of people. There is also common vandalism where someone might damage or destroy your car for the “fun” of it.

While the vandals might have fun perpetrating the act, it is certainly distressing and annoying to the owners of the vehicles who have to check if their insurance covers acts of vandalism or terrorism. If you have simple collision insurance, these acts will not be covered and you actually need comprehensive insurance to be covered against rioting, vandalism and terrorism.

Comprehensive insurance is the only form of car insurance that will also cover damage that occurs to your car that was not the result of a traffic accident.

Let’s consider the many ways that your car can be damaged, there are many!

Rioting usually involves wanton destruction of anything nearby ad rioters might decide that your car needs to be flipped or destroyed with blunt force! Vandals are similar – they simply decide that your car is a good target for destruction.

Fire can spread from property to your car or it can spread from nearby cars to yours. The car might have a mechanical problem that starts a fire and destroys the vehicle.

Flooding is unfortunately common in recent years and you might suddenly lose your car to a flash flood or water damage could destroy the engine.

Related to flooding, storms could bring down branches or throw debris at your car, destroying or significantly damaging it. With the increase in volatile storms in recent years thanks to global warming, this risk is in fact increasing rapidly. Related to storms, hail damage can also write off your car in the space of minutes.

A slightly more unusual one is animal damage which might occur! While it sounds strange, there are actually a number of cases of animals damaging or destroying cars every year in the United States.

You need to have comprehensive car insurance to guard against these unexpected and sometimes unusual events.

There are a couple of things to be aware of with comprehensive car insurance. The first is that when you get a car loan from a bank, you are expected to obtain comprehensive car insurance. This is to safeguard both you and the financial institution.

After the loan has been paid off and the car is older, many people consider dropping their comprehensive car insurance. However there is actually a lot of risk if you decide to do this, because as cars age they actually can become a greater target for thievery. Older cars are targeted because they are usually easier to break into and the seconds hand parts market is larger for those cars. T

hat means thieves can target the car and scrap it for parts and achieve a large profit. Often the greatest prize to a car thief is not the brand new Mercedes, but the 6 year old Subaru which they can break down into parts and achieve a large profit on.

It’s important to realize that vandals also attack cars indiscriminately. So if your car is brand new or it is 7 years old, they still might decide to vandalize it. That means that maintaining your comprehensive car insurance for a few years more might help you there as well.

So before you consider dumping your comprehensive car insurance, try to remember it covers for a wide variety of unusual and extreme events that most people never see coming!

Important Steps When Changing Car Insurance

Changing Car Insurance

Changing Car Insurance

Many people can be lazy when it comes to car insurance and simply pay the bill as it comes in without considering the possibility that other insurers may be offering better deals. Well the car insurance market is increasingly competitive and you might be able to save as much as 40% off of your current insurance bill by simply looking at competitors and negotiating a better premium.

Insurance experts say you should actually shop around for a better deal every couple of years because the car insurance market is increasingly competitive and premiums fluctuate greatly. Your trusty insurance provider may have slipped from providing the best value for money to providing the worst value for money in only a few short years.

Why throw money away?

Here are a couple of things to look out for when changing car insurance policies to make sure you really do improve the value for money you are receiving:

Checkout as many providers as you can

You only buy a car insurance policy once or twice a year and it is typically an expansive purchasing decision. So take your time and explore a number of options.

You should get quotes from at least 5 separate insurance companies before deciding on one, and typically, the more the better. Luckily, there are various websites on the Internet which allow you to do quick comparisons between insurance providers. At the very least, these websites can help you whittle down a large number of selections into a few front runners.

Also make sure you are comparing apples to apples. That is, make sure the policies offering the same or similar levels of liability protection and service. If you don’t have time to do the research yourself, you can always employ the services of an insurance agent!

Get in touch with your current Car Insurance Company

Many insurance companies don’t like letting go of their customers, so will fight for your business. It costs these companies a lot of money to obtain new customers, so they are willing to spend money to retain their existing customers as well.

A quick phone call or email to your current provider, in which you detail what the competitors are offering you and they may very well beat the other competitors! Also consider rolling your car insurance into other types of insurance you have if possible. Contact your home insurance company and see if they will give you a discount for getting your car insurance through them as well. That is called the multi-policy discount.

Make sure there are no penalties associated with switching

In some unusual cases insurance companies have fees attached to people who leave their current insurance coverage before completion of the agreement. So if you decide to end the 12 month insurance contact around month 8, there might be a fee attached.

Consider this fee, and make sure you time your purchase decision properly. It’s a rare case, but something to consider.

Investigate the new insurer before buying in

After getting some quotes, ensuring they all offer roughly the same level of service and narrowing it down to a top 2-3 providers – investigate the company.

Do they have a good reputation? Is it a large company? Do you know anyone who uses the company in question and have they had any problems? Where is the company based?

There are a number of websites where people share their experiences with various insurance companies so you can find out a lot with some quick searching on the Internet.

Having the lowest insurance premium is fantastic, but if the company has a horrible reputation and feedback on the Internet for the company is poor, then they may not be the right choice for you.

Check that the policy dates overlap or match

Double check the start and end dates on both your old policy and your new policy to ensure that there is no gap where you are not insured. Don’t cancel anything until the new insurance is up and running.

When you have canceled the old policy, make sure it is definitely canceled and there are no recurring fees.