How to reduce the cost of your annual car insurance policy

Each and every year consumers decide to remain with their existing motor insurance provider without taking the time to shop around. Perhaps this is due to the convenience of simply choosing to renew, avoiding the need to search for alternatives when a new price is ready and waiting. For many and particularly the older generations, this is exactly the route chosen and sadly, this is often at a cost. The cold hard truth is that often a motor insurance renewal quote from your existing provider will cost you more than the previous year and almost certainly more than a new provider could offer elsewhere. When renewal quotes are generated and sent out to us annually this should be our cue to start the process of shopping around and ultimately hunting out a much better deal. Given the fact that these renewal quotes are automatically generated by our existing provider, I can say confidently the price quoted will almost certainly be higher than the best price the supplier is prepared to accept. Often a quick search on a comparison site will highlight this fact and you may even find that your current provider is coming out cheaper too. This is why it is more important than ever that we stand up to renewal quotes and get ready to go to battle with our motor insurance providers.

As mentioned above the point to start considering how you can reduce the cost of your annual motor insurance policy is when you receive your renewal notice. Depending on the provider this will either be via post or email and generally they will be sent between 2 or 3 weeks before your renewal date is due. If you are unsure as to whether your insurance provider generally communicates with you via email or post, make a calendar reminder in your phone or email calendar around this time to prompt you to find out the renewal quote being offered. As I touched on above do not be surprised if when this quote does arrive, the premium for the year offered by your existing supplier has increased; regardless of the fact that no information has in fact changed and no claim has been made.

Thankfully there is a number of different ways in which the cost of your premium can be reduced and the first of which is to use a comparison website. Take for example, Compare The Market. This site works with the vast majority of insurance providers and this probably includes the company with whom you currently have cover. They offer a quick and simple service to establish what prices are currently available for your specific motor insurance needs. The process of completing the information required usually takes little longer than 10 minutes and the available quotes are generated in under a minute. As is the case with most comparison sites, Compare The Market will then display the quotes in price order. The cheapest available policy will therefore be displayed at the top of the page. It is important to take the time to ensure this price is reflective of all your requirements, such as Legal Cover for example. Equally there may be some providers who are purely online based, so if you would prefer the ability to communicate via telephone with such a company, paying a slightly higher premium may be necessary.

Your next port of call will be to contact your existing supplier armed with this information. When you are going through the telephone based options, select the option for ‘cancelling your policy’ as this will ensure you reach someone of assistance as quickly as possible. Advise that you have found a quote or several quotes elsewhere and on a like for like basis there are better prices. In the vast majority of cases your existing supplier will either reduce the quote to match the price you have found or certainly look to get as close to it as possible. When renewing a motor insurance policy, it is important to ensure all the information the provider has is up to date as this could affect your quote. Take for example your annual mileage, if this has reduced then ensure you let the company know. Equally if it is possible to add another driver to the policy, this may too assist in reducing the amount due to renew, in instances where there is the ability to add an older family member, who has a greater length of driving experience, this is often a sure-fire method in many cases of reducing the overall quote further still.

Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

Warning: Late repayment can cause you serious money problems - For help, go to moneyadviceservice.org.uk

This article is not intended to contain information about, or advertise, products offered by us but is intended to contain information, give opinions or discuss generally available products/services.

Author: Internal Customer Services Agent

 

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