Save Money On Car Insurance

When it comes to insurance, cars can can cost you a substantial amount of money. So here's three ways to reduce the size of your premium.

1) Shop Around For Car Insurance

When the time comes to renew your car insurance it's tempting to remain with your current insurer and avoid the bother of searching for a cheaper quote.

But if you don't look for a lower quote you could end up paying more than you need. Recent research has shown that the average motorist could save as much as 30% by shopping around for their car insurance.

So when it comes time to renew your car insurance, just think of all the money you could save with a few simple enquiries.

The best place to start is the internet. A number of websites will allow you to search the databases of the major insurance companies so that you can find the best quote for your situation.

Alternatively, use the internet to get the details of a number of insurance companies and then pick up the phone and see what's on offer.

Aim for six quotes before you stop searching. Then it's just a case of accepting the lowest quote that provides the level of cover that you require.

By shopping around for your car insurance you're almost certain to find a lower quote than your existing insurer is willing to offer.

If you want to remain with your current insurance company, you could give them evidence of their competitors lower quote. They may be prepared to beat their quote just to retain your custom. If they don't, just move on and think about the money that you've saved.

2) Get Your Car Insurance Online

Once you've found the best car insurance quote for your circumstances, make your purchase online.

In most cases, buying online is cheaper than completing the deal over the phone or even using a broker. In general, you can expect to pay 10-20% less for your car insurance if you buy online (after all, it cuts out the middleman and the call centre). This is particularly true if your circumstances are more mainstream (i.e. no exotic cars or driving convictions etc).

3) Pay For Your Car Insurance Annually

Paying for a year's insurance can put a mighty strain on your personal finances, especially if you have to make large payments on your debts.

So to help their customers, most insurance companies will allow you to pay for your premium in monthly instalments. Isn't that nice of them!

But don't think they do this out of the kindness of their heart. Oh no, they want their reward for having to wait for their money. In fact, paying for your car insurance by instalments can easily add 10% to your annual premium.

So avoid it like the plague. And if you just can't afford to pay for the whole year's cover at once, it's best to use a low interest credit card to spread the cost over 12 months. As long as the APR of the credit card is less than the extra cost of the insurance instalment plan, you'll be better off in the long run.

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