Friday, January 27, 2012

Top Tips For Your Auto Insurance Renewal

Here are some easy things you can do to avoid overpaying for your car insurance. Try these ideas to see how much you could save. We know we all need to have car insurance, but it's not getting any easier in these days of financial turmoil. That doesn't mean you have to blindly pay whatever your insurer quotes though, as there are several simple things you can do to reduce the cost of your premiums.

Firstly, you should shop around as much as possible - too many people don't even do this step which is unforgiveable with the internet at our disposal these days. The wonderful world of the internet allows you to easily compare insurance costs of various insurers, so get looking today. Plus, you'll usually get a discount of 10% or more just for buying your policy online.

Then there's policy type: do you really need a comprehensive policy with all the extras? Going for a third party fire & theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn't an expensive model.

Thirdly, there's the no claims discounts: Nearly all policies feature a discount that increases for every year you don't make a claim. The higher the discount available, the more you could save. It's also possible to protect your no claims discount for the life of your policy, so that even if you had to make a claim, you would still be able to maintain your no claims discount level.

Then there's the excess: The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.

How secure is your vehicle is the next question to ask yourself. By fitting a proper alarm and immobiliser it can also reduce your premium. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.

Pay annually: Many insurers charge you interest for the privilege of paying in monthly installments. So definitely pay annually if you can, but if you can't manage this, then find the insurers who don't charge extra for the monthly payment method.

Mileage: The more mileage you run up every year, the more your insurance will cost. Even if you can't reduce your mileage, make sure you're not overestimating how much you actually do drive, and give your insurer an accurate figure.

By: Mario Pulman
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