How to slash the cost of your car insurance
If you are looking for no deposit car insurance, that you can pay for monthly, then you probably want to pay as little as possible for your policy too. Here are few little known ways that can help you cut the cost of it.
(1) Check the optional extras
Have you had a renewal quote, or got one from a price comparison site? Does it include optional extras, such as a courtesy car in the event of an accident or roadside recovery? See if you really need them. If not ask the insurer if they'll remove them and give you a price reduction.
(2) Be realistic about your car's value
Is your car still valued at the price you paid for it some time ago? They will only pay book value, not a higher sum that it may be insured for. Get it reduced.
(3) Re-calculate your mileage
Check on how many miles you drove last year and if it was much less than the the number you estimated, consider reducing it.
(4) Be a 'flipper'
Are you happy with your present insurer, even though you think you're being ripped off? Then switch to another one for a year. The following year you can switch back; after all you'll be a 'new customer' again and be able to enjoy the discounts they get! You could flip between a couple of trusted companies every year if you wished.
(5) Search early for the best prices
Are you one of those who leaves everything to the last minute? Insurers love people who are well organised, because they think they are less likely to have accidents, and so most of them offer lower prices (sometimes much lower ones) to drivers whose current policies still have a month to run. If you shop around for quotes using a price comparison engine, start looking a month before you need to buy a policy, and book it ahead. This might save you a lot of cash.
You could check the difference by getting two quotes; one for cover to start in a month's time, and one for it to begin immediately. The difference may surprise you.
(6) Reconsider that protected no claims discount
Many motorists believe that if they have a protected no claims bonus their premium won't go up if they have a bump. What really happens is this:
Yes, your NCB will stay the same. If you had, say, a 45% reduction before the accident, you will still get 45% off.
However; the basic premium will go up! So, you'll still end up paying a lot more!
Perhaps having your discount protected isn't such a good bargain as you thought it was. Maybe you can do without it.
(7) Consider increasing your voluntary excess - but be careful
Insurers are impressed by customers who offer to pay a higher voluntary excess, since it shows confidence in their ability to avoid having to make a claim. So, they often reward them with lower premiums. However they usually add a compulsory excess to this, as well. Remember that in the event of a claim, you will have to pay both excesses yourself; so make sure it is a sum that you can afford if it proves necessary.
Most comparison sites will let you go back and change the voluntary excess so you can see if is worth your while to increase it.
(8) Consider paying for minor bumps yourself
If you are at fault in an accident, you will have an excess to pay. If your insurer has to pay out on a claim your next premium should go up. It may be cheaper to just settle the claim yourself, particularly if you have an expensive premium but a cheap car. However; you are obliged to inform your insurer of every accident you are involved in, whether you are at fault or not. Even if you, or another driver, pay for any damage your premium will still go up. So will you tell them? that's up to you!
(9) Ask for a discount
Have you tried ringing your current insurer and asking for a discount? After all, if you haven't made any claims they'll want to keep you. Why not compare quotes, find the cheapest, ring up their customer service people and explain that you'd love to stay with them but you've been offered a much lower price - so would they like to match it? I did this once and was offered nearly £100 reduction off a renewal premium (I still switched to another company which was even cheaper!).
(10) Don't buy 'optional extras'
Extras such a courtesy cars, legal cover etc are rarely good value. In fact they are money spinners for insurers and brokers and you can often buy them elsewhere for a lot less money.
One common trick they use is to ring you up and offer you these extras at a large discount. They don't tell you though that they will include these at full price at renewal time! If you really want them at the reduced price then go ahead and pay for them but make sure you cancel them next year.
Conclusion:
Remember that, although you have no choice but to insure your car, there are ways you can probably shave a lot of money off the cost of cover. Insurance companies are not charities; they have to earn a profit and if you are failing to save money they are under no obligation to tell you.
However, they need a steady supply of new customers to replace those that die, give up driving or realise that they can get better offers elsewhere.
This is why they will spend a fortune on expensive advertising to attract them and, most importantly, why they are usually prepared to offer huge discounts to them - but this is at the expense of their loyal, regular customers! So, stop being so loyal and think of your own interests instead. Don't just accept any renewal quote: search for lower prices on several comparison sites for your next 'no deposit' policy.