Even if you provide every insurance company you contact with exactly the same information, you often get a number of very different quotes. This is because insurance companies use their own claim statistics and experience, as well as slightly different methods to calculate your insurance premium. You may also find that your renewal premium has gone up even if you haven't made a claim.
To make sure you get the best possible car insurance quote you should always shop around and compare the different policies on offer in terms of price, coverage, compulsory excesses and reputation of the insurer. To work out the best level of insurance coverage for you, you should consider the value of your car, the value of your personal possessions in the car, your budget and how much of a risk you are prepared to take. Ideally you should always try and get at least 3 different car insurance quotes.
So, how can you make your policy cheaper? There are a number of ways to get a cheap car insurance quote, although some may seem a little more drastic than others:
- Change your car. The value, type and engine power of your car all make a difference to your premium. In general, a smaller, lower powered car will cost less to insure. It is also worthwhile assessing the cost of replacement parts and maintenance as this can affect the cost of premiums.
- Park your car in a garage. Where you usually park your car overnight can affect your premium. You could lower your premium by using a garage but even off-road parking is better than on the street. Remember, the premium calculations are all based on the perceived level of risk.
- Increase your car security. By fitting an alarm, an immobiliser or a tracker system in your car you can often get a discount on your car insurance quote.
- Describe your occupation appropriately. This may not be an immediately obvious one but here is an example. Say you work in the publishing industry: if you sit at a desk all day editing children's story books you will be in a much lower risk class than a journalist who has to drive all over the country reporting on breaking new stories. So make sure you choose an appropriate job category so that you don't end up paying more than you have to.
- Accurately estimate your annual mileage. Insurers work on the principle that the more miles you drive, the greater your chance of having an accident and therefore the greater your insurance premium will be. Try to be as accurate as possible with how many miles you would drive in an average year.
- Don't add more drivers than necessary. You should only add named drivers to your policy if they regularly use the car. 'Any driver' policies and policies with more than two named drivers can be expensive. You can often add drivers temporarily to your policy for a small charge. The only case where it may be cheaper to have an 'any driver' policy is where several of the drivers are young and inexperienced.
- Increase your voluntary excess. An 'excess' is the first part of a claim that you have to pay, although you can get it back if the claim is deemed 'non fault'. If you increase your voluntary excess then your premium should get lower.
- Change your policy coverage. If the trade value of your car is not too high, you could save money by choosing a Third Party Fire & Theft policy instead of a Fully Comprehensive one. However, it is important to note that downgrading further to a Third Party Only policy may not save you more money. This is because only a limited number of insurers offer Third Party Only insurance so you may still get a more competitive quote for Third Party Fire & Theft.
- Choose a policy with fewer 'extras'. Extra services and products mean higher premiums. If you can make do without, for example, a courtesy car while yours is being repaired, you may well be able to get a cheaper car insurance quote.
- Choose a specialist policy. Whilst this option may not always save you money, insurance policies specifically designed for women drivers only or young drivers may work out cheaper. Also, some insurance companies will specialise in a particular type of car and are often prepared to discount more in some areas than others.
- Shop around. The biggest savings usually come from shopping around. There is likely to be a big difference between the highest and lowest quotes for the same car and driver(s). Get at least 3 car insurance quotes - either online or by telephone - and compare the prices and policies to find the most appropriate yet cheap car insurance quote.
