How to Get Cheap Car Insurance?
There are nearly a dozen ways to get cheap car insurance. From paying annually instead of monthly to using comparison sites to get quotes from cheap car insurance companies for your profile, UK motorists use many tricks to save on car insurance costs. Here is an overview of some popular ways to get a good deal on car insurance:
- Pay annually. While some car insurance companies don’t charge extra for monthly payments, most companies impose a finance charge for motorists paying in monthly instalments. By paying monthly, a policyholder is essentially taking a loan out to spread the costs over the year. This typically comes with a charge, and APRs can reach over 20%, making monthly payments quite a bit more expensive than paying upfront.
- Compare quotes before renewing. Motorists who auto renew are potentially leaving hundreds of pounds on the table. Even if a rate hasn’t increased dramatically at renewal, there could be other insurers willing to insure a motorist at a cheaper rate. The only way to find this out is by comparing prices from other insurers.
- Check rates for all levels of car insurance. Motorists wanting to save money often make the mistake of thinking that a lower tier of cover will be cheaper. It often isn’t. Despite offering a higher level of cover, comprehensive car insurance is often cheaper than lesser offerings, third party only and third party, fire and theft.
- Adding a named driver. Higher-risk drivers might secure a lower rate by adding a lower-risk ‘named driver’ to their policy. But honesty is critical when declaring which driver is the main driver to stay legal.
- Increase the excess. Opting for a higher excess can lower the premium. However, motorists should think about whether or not the higher excess is worth it, as the premium savings are sometimes relatively small. Also, motorists should be sure they would be comfortable paying the excess should they need to claim.
- Take care with add-ons. Add-ons are a popular way for car insurance companies to make extra money, but they aren’t always worth it. For example, a motorist that has alternative transportation might not need to pay for courtesy car coverage.
- Choose a car in a lower insurance group. Insurance costs are highly dependent on the particular car. Insurers look at the insurance group of a vehicle, its engine size, and current market value. Opting for a car in a lower insurance group with a small engine and a lower value can significantly reduce car insurance costs.
- Use a broker. While brokers charge fees, they can ultimately save some motorists money on their car insurance. This is especially true for motorists who are having trouble finding affordable insurance elsewhere, perhaps due to a previous conviction or for a high-value car. To find a broker, use the British Insurance Brokers’ Association’s find a broker service.
How to haggle with car insurance companies
The key to haggling with a car insurance company is to have a competing offer that is better in at least one regard. A better offer could have a cheaper price, a lower excess, or more features included. Features to look out for include breakdown cover, legal cover, personal accident cover, key cover and more.
With the details of the better offer in hand, contact the desired car insurance company and negotiate. Perhaps they’ll be able to offer a discount or throw in an extra add-on feature to make their offer more attractive.
Cheap car insurance for people who have had accidents
Car insurance is more expensive for motorists who’ve had an accident. Not only are rates more expensive, but there will be a smaller group of car insurers willing to offer cover. As a result, it can take more effort to find car insurance after an accident.
In fact, some of the big-name insurers may shy away from offering cover, and a specialist insurance provider might be needed to secure a policy. Specialist brokers can help in this regard, as they might have access to insurance companies that are willing to insure those who’ve had an accident and claimed.
What information do car insurance companies have access to
Car insurance companies have access to five different databases that record information from claims to insurance fraud convictions. Here are descriptions of the data that each of these databases holds about motorists and vehicles in the UK.
Claims Underwriting Exchange (CUE): A database of all home, motor and personal injury claims, regardless of whether or not the insurer paid out.
Insurance Fraud Register (IFR): A list of everyone who has been convicted of insurance fraud and funded by the Association of British Insurers (ABI).
Motor Insurance Anti-Fraud and Theft Register (MIAFTR): A record of all vehicles that have been stolen and not recorded or declared “write-offs” due to an accident.
My Licence Database: Data on each motorist’s driver’s licence and endorsements. Endorsements appear on a licence if a motorist has received a conviction and show the type of offence, the offence date, the date of conviction and the sentence (e.g., fixed penalty, fine, points, disqualification or another penalty such as a community order or imprisonment).
Motor Insurance Database (MID): Records of the insurance status of each registered vehicle in the UK, including the identity of an insurance company if a vehicle is insured.
