Don't Just Accept Your Car Insurance Renewal Quote

UK car insurance companies make substantial profits every year because a large number of existing customers just accept the renewal quote from their car insurance provider and don't bother to compare premiums.

Many people assume that because their first years premium was competitive they will continue to get good value for money from the same insurer. In fact, as an existing customer renewing your car insurance policy, you could be paying for discounts your insurance company offers to attract new customers.
This is a common way for UK car insurance companies to get new customers onto their books.

Become a New Customer Again

A simple way to ensure you don't pay more than a new customer for exactly the same cover is to become a new customer again.

Instead of just accepting your renewal premium, get a quote from your current insurer as a new customer. This will expose any discount given by your insurer to new customers which you will be paying for if you renew as an existing policyholder.

Call the insurers advertised phone number or get a quote from their website, but don't use the contact details from your renewal pack as this will result in policyholder rates.

Shop Around

Armed with the best quote from your current insurer compare it against at least ten other car insurance companies. The internet makes this far less hassle than it used to be and you can now get multiple quotes from major insurers using comparitive car insurance sites such as Moneysupermarket and Screentrade.

Cheap Car Insurance Premiums in 5 Easy Steps

Although car insurance is compulsory, it's not necessary to pay more than you have to. A few simple steps combined with some time surfing for competitive car insurance rates really can save you hundreds.

Step 1 - Cut the Insurer's Risk

The easiest way to cut your car insurance premiums is to reduce the insurer's risk and accept a higher voluntary excess. An insurer's standard excess may be £100 but if you meet the first £250 of any claim, you'll see a reduction in your premium. This is because you're taking on more of the risk so you get a discount. But it's a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.

Step 2 - Security

Fitting security devices can also result in cheaper car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.

Step 3 - Annual Mileage

If your annual mileage is 5,000 miles or less, ask insurer's if they offer discounts for agreed mileage restrictions.

Step 4 - Named Drivers

Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will certainly increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!

Step 5 - Shop Around

The biggest car insurance savings come from shopping around. This has been made much easier with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s). Start off using good comparative online car insurance quote sites like Moneysupermarket and Screentrade, take their best quotes and go direct to the cheapest car insurance companies for more specific quotations.