March insurance renewal? Time to save on car cover

Published:
27 February 2012
Topic:
News,Insurance,Car

March 1 sees the arrival of the new '12' car registration plates, which signals a busy time for car purchases and a peak period for insurance renewals.

But if your insurance is up for renewal, are you a savvy shopper who will search for the best price - or will you automatically renew without a second thought?

If the latter sounds familiar, you are among the 7million drivers who are wasting the opportunity to potentially save hundreds of pounds.

We take a look at why it is vital to shop around and how you can drive down the costs of your car insurance.

A high price to pay

Research from MoneySupermarket shows that over 7million drivers are collectively wasting a staggering £2.8billion by staying with their existing insurance provider.

Of these 10% don't think they could save money and a further 7% automatically renew their car insurance policy because they simply can't be bothered to see if there are savings to be made.

Yet this apathy is costing motorists an average saving of £375 each - a very high price to pay in these cash-strapped times.

Loyalty won't be rewarded

Unfortunately, car insurance providers don't reward loyalty. They depend on inertia and willingness of customers to renew their policy without question.

Our research shows the over-55s are the most loyal age group, with the majority staying with the same provider for over three years.

The younger generation on the other hand, were found to be are the least loyal, with 18-24 year olds only staying with their provider on average 1.9 years

Pete Harrison, car insurance expert at MoneySupermarket said: "It really doesn't matter if it's pure indifference or plain and simple laziness - the fact is that motorists who don't shop around at renewal time are missing a trick on the potential savings on the cost of cover. 

"Our research once again shows motorists could be saving themselves hundreds of pounds. With household budgets under continuous pressure, and fuel prices sky high, I'm shocked people are so willing to throw money down the drain. 

"It is vital motorists don't just accept the renewal price from their current provider, and instead scour the market to protect their hard-earned cash by finding the best car insurance deal to suit their needs."

 

Bring costs down

Along with shopping around and comparing policies, there are other steps you can take to reduce your premium further. While it's important to get the level of cover you need, there's no point paying over the odds.  Consider the following tips:

• Increase your voluntary excess to bring your premium down. Just make sure that, if you have to make a claim, you could can afford to pay the excess.

• Fit your car with devices likely to deter burglars. An alarm or immobiliser will attract a discount as you will be viewed as lower risk.

• Pay your insurance annually to avoid hefty interest charges every month. Read our article 'The best way to pay for car insurance' to weigh up the options.

• An extra driving qualification such as PassPlus can bring down the cost of your premium.

• Younger, more inexperienced drivers could add an experienced driver to their policy to bring down the price. But don't be tempted to lie about who the main driver is - this is known as 'fronting' and your policy could be deemed invalid if you were to make a claim.

So - plenty of savings are there to be made, and with family finances squeezed to the limit, now is the time to take action. If your car insurance is up for renewal, compare prices and make sure you get the best possible deal.

Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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