In an earlier post we discussed how to get cheaper car insurance quotes by the way that you drive. This places the focus on maintaining an accident free record and driving as a responsible and vigilant motorist. Perhaps we should consider another starting point. Even a good driving record and responsible driving behaviour might not get you the most affordable car insurance premium…for this you need to do so some effort and shopping around!
To find the cheapest or most affordable insurance cover for your car, you will need a bit of homework/ research, and many more bits of clear communication! The car insurance marketplace is highly competitive with many insurers and companies in the car insurance marketplace trying to undercut everyone else. Use this to your advantage once you know what you need!
We would like to provide the following advice/ suggestions to the prospective car insurance client:
- Start by doing a bit of research and reading about car insurance.
- Familiarize yourself with the terms and conditions of a car insurance policy.
- Talk to friends about their experiences and pitfalls they might have experienced with their insurers.
- Once you have a bit more knowledge – it is time to shop around and ask for quotations!
- Before you buy a new car, contact your insurer to learn how much you’ll have to spend for car insurance. Premiums can significantly change, depending on the model, year and the make of a car.
- Rather spend a bit more time in the quotation and search phase – Call a few insurers to make sure you’re paying the lowest overall amount.
- Do not feel guilty to approach an insurer if you already believe you have a favourite provider in mind – ask many insurers – this is what they do! They provide quotations based on the information disclosed to them…
- Ensure that you get all quotes on a like for like basis so that you get a true idea of what you could be paying for the same quality and level of cover.
- Ask about discounts!
- You may receive a discount from your car insurance company if you buy more than one type of insurance through that same company (e.g., car and home insurance).
- A discount may also apply to your car insurance if you insure multiple cars under the same policy or with the same company.
- You can earn money-saving discounts for taking a defensive driving course or staying with the same insurance company for a number of years.
- Discuss with the insurer to increase your voluntary car insurance excess a little – This is what you pay if you make a claim. A higher excess usually means a lower premium.
Also consider how and where you do your shopping. Know the difference between brokers, direct insurers and insurance aggregators and how they have an influence on your car insurance premium. Consider doing business on the Internet – Financial products are sometimes far cheaper on the Internet than elsewhere.
Once you have found some quotes that you like (ie good price, good policy features and benefits) it is time to make even more savings as you start playing around with the quotes! Ask yourself whether you understand all the contents and fine print and whether you need all the benefits and cover offered. Share and discuss with a good friend who might have some experience of his own to share with you!
Be prepared to do the legwork, if you want a good deal. Communicate clearly and in complete honesty with the insurer and allow yourself enough time to make an informed decision. Do not feel coerced into signing any policy document before you are comfortable with the price and the product!