Drivers can save hundreds of pounds a year on their car insurance by switching provider, yet most stay on the same policy and pay far more than they should.
Instead of shopping around for the best premium, many people accept their insurer’s renewal quote, which is likely to be much higher.
It’s easy to compare car insurance prices through comparison sites, and most can find the best price in less than five minutes.
Customers are also able to compare the quality of policies offered, and see if they represent a better deal than their current provider.
Motorists are encouraged to shop around for their car insurance to see if they can save.
It is relatively simple to switch to another insurer that may offer incentives for new customers or better service.
Comparing prices will also give users the information they need to negotiate with their current insurer if they decide to stay.
It’s easy to get quotes using price comparison websites, including This Money’s partner Compare Market.
But making the switch isn’t the only way to help reduce your car insurance costs. Follow our ten steps and see if you can lower your premium now.
1. Shop for the Best Policy
This is the number one way to save on car insurance. Drivers can save hundreds of pounds if they shop around when renewing their cover.
An online comparison service, such as this is a partner of Money Compare Market Can work hard for you. Enter your details and check upcoming prices. You can change the additional amount you’re willing to pay and the mileage you’ll run, and get new quotes.
However, motorists are urged to ensure that they are comparing for the same.
Some policies may seem cheaper on the surface, but on closer inspection they may not offer the same level of cover when you have to make a claim.
It’s also important to check out insurers that don’t offer the feature on comparison sites like Direct Line.
If you are happy with the cover offered by your existing provider so far, but are unhappy with their renewal quote, tell them about the best offer you have received from a rival insurer and ask them to match it at least.
Customers should also be aware that insurers will try to include administration fees for policy changes mid-term. This fee, usually between £25 and £50, will be added if you change the address of the vehicle or your home.
However, if it is a minor customization, such as changing from a regular number plate to a personal registration number, you can ask for the fee to be waived.
Comparing prices will help drivers find the best price to negotiate with their current insurer
How to save on your premium
Drivers are encouraged to compare car insurance prices to see if they can save by switching providers.
They can also use the quotes to negotiate with their current insurer.
It takes just minutes to shop around and could potentially save you hundreds.
2. Sign up for Telematics (Black Box) Policy
Black box policies are those where the insurer installs a system in your car to monitor your driving. It is designed to reward those who drive carefully.
Many of these devices are aimed at young motorists, who can dramatically reduce their high premiums by installing one and proving themselves to be a savvy driver.
However, any motorist is able to get one. Officially called telematics, these devices check your speed, how fast you accelerate and brake, and how carefully you drive.
They also record whether you are on the road at a ‘hazardous’ time, for example in the early hours of the morning.
They can cut premiums significantly once you start proving that you are a good driver. Some insurers also offer an upfront discount if you take a telematics policy.
In fact, research by Compare the Market found that 52 percent of drivers aged 17 to 20 could save by switching to a telematics policy instead of a regular policy.
These drivers can usually save around £995 on average by switching.
3. Be careful how many drivers are named on your policy
Another way of deducting premium is to ensure that only regular drivers are named in the policy.
Adding a young, inexperienced driver can be a false economy, especially if you have a large or high-powered vehicle.
The premium will be affected by the youngest driver, and he cannot have a no-claim bonus.
Insurers are also cracking down on fronting, where parents insure cars in children’s names to cut costs.
Make sure that if you are the policyholder of a car your children drive, you are actually its main driver – or that you declare otherwise.
You can always add someone for a few days when they really need to drive the car.
Motorists should avoid keeping occasional users on their policy for a long time, as this can be costly.
4. Pay annually
While taking a new policy, the drivers will be given the option to either pay in advance for the entire year or in monthly instalments.
Many people opt for monthly payments because it means not having to part with a large amount all at once – but if you can pay your annual premiums upfront, you can save money.
This is because your insurer may charge you interest on monthly installments. It is worth asking them if there is a difference and if so, what is it.
5. Protect Your No-Claim Bonus
A tall no-claims bonus is the best way to cut car insurance costs, so play it safe.
Securing your no-claim bonus means you can claim your car insurance up to a specified limit, or under certain circumstances, without affecting the bonus.
This may increase the premium by a few pounds, but it becomes insignificant against the potential loss of a 90 percent discount on a premium of several hundred pounds.
However, the definition of a protected no-claims bonus can vary widely among insurers.
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