| 10th September 2010
With car insurance premiums up by around 30 per cent over the past year, it could be an expensive year for motorists. However, knowledge is power, especially if you know a few tricks of the trade when it comes to sourcing cheap car insurance.
Research from Consumer Intelligence, an independent market research company, found that over 97 per cent of drivers could make an average saving of £224.25 by shopping around for the best deal. It doesn’t pay to be loyal in the car insurance game, so when you get your renewal through act straight away and don’t leave it till the last minute.
Why are prices increasing?
There are several factors that are pushing prices up, and it’s the usual culprits who are to blame.So-called ambulance chasers’, frequently seen on TV asking if you have had an accident recently, are pushing people to make a claim on common related injuries such as whiplash, adding to average insurance premiums as companies attempt to recoup the costs of legal action.Although the amount of uninsured drivers has fallen by 20 per cent, that drop hasn’t translated into reduced costs. Uninsured drivers still cost the industry £500m every year and add an average of £30 to the typical yearly premium.Finally, insurance companies are more likely to offer cheaper quotes to new customers rather than their existing customers, with research indicating that drivers stay with the same insurer for an average of 2.8 years.There are just a few of the factors adding to the cost of insurance premiums each year, with the cost of an average car insurance policy rising from £538 to £704.
How can I find the best deal for me?
As your renewal comes through, take a few minutes out of your day to make sure you find the cheapest price available.Use a comparison website
Use price comparison websites and make a note of the top three polices and what they include. A courtesy car, legal cover and personal injury cover are just some of the things you need to consider.Consider a higher excess payment
An excess payment is the amount YOU are willing to pay in the event of making a claim. A compulsory excess is set by the insurer, but you can also opt to pay a voluntary excess. The higher the voluntary excess, the cheaper your overall premium will be. Reduce your mileage
Lowering your mileage can help bring down your premiums. If you’re not planning to rack up the miles it can pay to agree a mileage limit with your insurer.Add a partner to your policy
Insurers charge less for husband-and-wife policies than they do for ones designated 'main driver with one named' because they believe family members are safer drivers. Also multi-car policies are available from some insurers which can lower the overall premium for a number of cars in the household.Threaten to leave your insurance company
Once you have found your cheapest quote online, tell your current insurer that you are leaving them and see if they can quote you less. In a highly competitive market, they will do all they can to try and keep you. This article was provided by MoneySupermarket.com, who offer cheap car insurance quotes