If you're one of the thousands of people whose car insurance is due for renewal this September then don't let apathy cost you a packet.
An increasing number of insurers will automatically renew customers' policies unless those people contact them directly and ask them not to.
That's because they know that many drivers won't bother getting in touch, meaning they'll be tied into another year's agreement - if insurers ask people to actively renew, they might encourage those people to shop around for a better deal and leave.
But apathy can cost a fortune. Research by Consumer Intelligence found motorists can save an average of £157 by using moneysupermarket.com to compare different providers and hunt down the cheapest deal. That's a lot of money.
So it's important to avoid the reinsurance trap and to remember that loyalty rarely pays when it comes to car insurance. And there really is no excuse - moneysupermarket compares prices from more than 100 providers and it literally takes just minutes.
Here are a few other things to watch out for when comparing quotes and policies.
Third party isn't always the cheapest
Many drivers, the young in particular, opt for third party only cover in a bid to keep the cost down. However, in some instances this level of insurance may actually cost you more than a comprehensive policy.
This may leave you chuckling in disbelief but it really is true. We've analysed the average cost of motor insurance across the board and found that the average fully comp policy is cheaper than the average third-party.
In fact the average third-party only cover for a driver aged under 21 is £1,434, while the average fully comprehensive policy is just £955.
You may well be wondering why this is the case - surely if the level of cover is lower, the price will be cheaper?
Steve Sweeney, head of motor insurance at moneysupermarket.com, explained: "Traditionally motorists might assume a third-party only policy will be cheaper because of the reduced levels of cover, but in recent years, drivers with a more 'risky' profile, such as younger motorists, have opted for this cover to keep the cost of motoring down.
"Providers have reacted to this perceived increase in risk by driving up the cost of third-party only cover. It really does pay to shop around and do the research to find the best car insurance policy at the best price."
Check the excess
When you go online to see if your renewal quote can be beaten, make sure you're comparing like with like. Check what excess your renewal price is based on - it could be higher than what you're using for your new quotes which may mean the price offered by your existing insurer looks more competitive.
Also, bear in mind there are two excesses - a compulsory excess which is set by the insurer and an additional voluntary excess chosen by you.
And remember, don't just base your decision on price - make sure the level of cover is adequate for your needs. Insurers differ in what they include as 'standard' cover - some strip out things such as windscreen cover and a courtesy card in order to make their quote seem more competitive, but when you factor in such protection it will cost extra. You may find that a policy which initially appears less competitively priced, is actually better value because the standard lever of cover is higher.
Pay annually
Although it might seem easier to pay monthly, you'll usually end up paying interest, meaning you'll pay more over the year. It's often much cheaper to pay for your policy in one lump sum.
However, if you're planning to give up your car in the next 12 months then it's probably cheaper to pay monthly, although you may be hit with a cancellation fee, so find out what that is before you pick the policy.
Quick saves
Here are a few more easy way to shave pounds off your policy.
Buy online: many insurers will give you a discount for buying your policy via the web.
Limit your miles: If you can cut your average annual mileage, your premiums can come right down. Consider car-sharing with a colleague.
Secure your car: Insurers will usually charge less if your vehicle is more secure, because it cuts the risk. Make sure you have a car alarm and an immobiliser.
Choose carefully: Certain cars are seen as bigger risks and so insurers will charge more. If you pick a reliable motor with a smaller engine, you'll probably pay less.
Pass Plus: Newly-qualified drivers can take some extra driving lessons and qualify for a Pass Plus certificate, which shows they've been taught additional skills like driving at night. This can cut your first year's policy by as much as 35%.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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