Five Car Insurance Money Saving Tips

If it’s time for you to renew your car insurance, you might be concerned about how much it’s going to cost you. Insurance premiums have been rising pretty much constantly since records began in 2005, and it’s often the case that any additional no claims bonus you may have built up in the last year isn’t going to be enough to radically offset the increased cost due to changes in the economy as a whole. Still, it doesn’t have to cost you an arm and a leg… if you’re smart about it.

Here are five tips to help you save money on your car insurance:

1. Don’t have an accident… and if you do, think before you claim.
This might sound like ridiculous advice, but no claims bonuses exist for a reason – if you’re a safe driver, you’re less of a risk to the insurance company. However, you don’t have to claim on your insurance if you do have a minor accident (say, a fender bender) that won’t cost much to repair. In fact, given that it would allow you to keep your no claims bonus, you’re much better off dealing with small damages yourself in the long run.

2. Look around for a better deal.
Insurances companies often raise their prices each year because they know that most people will just pay the extra to save themselves having to look around for a new provider. However, thanks to the internet (and the vast number of price comparison sites that have sprung up in recent years), it’s now ridiculously easy to check all of the offers available at any given time. As such, you really have no excuse to stick with your current provider… that is, unless they really are offering you the best deal on the market.

3. Cut down on your policy.
Don’t be afraid to ask for a reduction in your policy if there are extenuating circumstances. Do you really need four named drivers on a car that only you drive? Is your excess low enough that it’s forcing your premiums through the roof? Do you only plan on driving a certain number of miles a year? Talking to your provider about exactly what you need (and, more importantly, what you don’t need) can help you cut costs.

4. Look for the special offers.
Many companies offer introductory offers to get you to switch to them. This can consist of many different deals, but they’re all designed to draw you in by saving you money. They work off the principle that most people are too lazy to look for a new insurer after the first year – but if you’re willing to switch, you can pick up introductory offers every year and save a packet.

5. Go direct, or buy online.
Call centres cost money to run, and middlemen charge a fee – and the money has to come from somewhere. Unfortunately, this is from you. Many companies offer discounts for booking your insurance online, and (if you’re willing to search them out yourself) you can save money by going direct to insurers instead of through an intermediary.