Let’s talk about things to watch out for when it comes to car insurance. The first one is: when you renew your policy.
Your existing insurance company will make it very easy for you to renew with them, but that is not a good thing, because the chances are if you go to MoneySuperMarket you’ll find a company that wants to charge you less, because they want your business more.
So, have a look around, get a quotation and you can find yourself paying a lower premium than you did last year.
The next thing to watch out for is when you pay your premium by instalments. Now, it can be attractive to chop up a big premium of several hundred pounds into twelve chunks and pay it off monthly but the problem there is, that the insurance company charge you interest for doing so. It can be as much as 30% on top of the premium you’ve been quoted. So, think very carefully and if you can afford to pay it all in one go upfront, then do so.
If you make changes to your policy during the course of the year, say you change your address, then you’ll be charged with a policy adjustment fee and that might be £25. Sometimes this is unavoidable you have to make the change, but if it’s getting close to renewal and the change isn’t urgent, wait until you change your policy and do it all in one go.
Now, when you buy car insurance, the insurance company might try to sell you policy add-ons such as, legal expenses cover, personal injury cover, protected no claims bonus cover and a car hire policy.
Now, all of these are perfectly valid, there’s nothing wrong with them, but just check whether you really want them and really need them. If you don’t, make sure any boxes on the application form are unticked, so that you don’t buy them.