Providers of car insurance change their prices often. If you are leaving your policy to renew automatically every year, you might be missing out on some significant savings, especially if you have been with the same company for more than a couple of years and allow it to renew in this way. You should be shopping around with car insurance companies each year around the time that your policy renews. By doing this, you can find the cheap car insurance quotes that are currently the most competitive. While allowing your policy to automatically renew can be convenient because you don’t have to think about it, you might be losing hundreds or thousands of pounds each year. When you shop around for better deals, there are some things to keep in mind.
Choices in Your Policy
Your voluntary excess – also sometimes called the deductible – is what you have to pay out of pocket before the insurance company will pay on a claim. The more excess that you agree to pay in the event of an accident, the lower your premiums will be. This only works up to a certain point, though. There is a point at which the higher excess stops lowering your premium costs. Make sure to take a policy’s compulsory excess into consideration when you are looking. Some companies can offer premiums that are extremely low because their compulsory excess is very high already.
Premiums can be scheduled in a number of ways – monthly, quarterly, biannually, and annually. Annual payments are a larger lump sum payment, but they are cheaper than monthly premiums in the long run. Many insurance providers charge interest on monthly payments, increasing the overall amount.
Some insurance providers automatically authorise quotes for repairs that are made by garages and repairmen that they have a working relationship with and trust. Usually, this won’t be the most inexpensive quote you can find. By shopping around, you may be able to get prices for the work and parts that will save you some money. Look into an insurance company’s guidelines on repairs before purchasing a policy through them.
If you value your no claims discount, it is important to ask insurance providers about any restrictions regarding them. Some companies may cancel a no claims bonus even if you are in an accident that is not your fault or that they cannot get their money back on. Many providers now offer no claims discount protection, which keeps you from losing the discount in the event that you have an accident, with a restriction on how many files can be claimed before your discount is forfeit.
Optional Extras to Look For
Insurance companies offer many additional features that you can opt into. Be careful with these, however, because each typically adds to your premiums and will make your payments more expensive. It is important that you pay close attention and decide very carefully which features you need and are willing to pay extra for.
If you already have breakdown coverage through another insurance policy or organisation, you might want to make sure that you are not paying for it on your car insurance premiums, as well. Legal expense coverage offers you the opportunity to recover any losses that were uninsured in an accident. If you were not at fault, you can seek these losses from the driver who was responsible. The amount of coverage is typically anywhere from £50,000 to £100,000. Insurance companies decide whether your case can be won before it is tried and before they grant you this coverage in individual situations, though. When your car is under repairs, some insurance providers will cover you for a courtesy car to use until your own vehicle is back in your hands. Look into the fine print, though. Some companies charge to provide the courtesy car, charge to insure it, or will provide you with one only in certain circumstances. If you drive abroad, you may wish to find overseas coverage. Some insurance providers will not cover you at all or will only offer Third Party, Fire, and Theft coverage when you are abroad, and do not provide breakdown coverage automatically.