Car Insurance Online

With many households around the country feeling the pain of the financial squeeze, now is a good time to review income and expenditure to see where any savings can be made.

When it comes to credit, you have to make sure you check out all of your options, you can compare loans at moneysupermarket and other price comparison sites, but there are many other ways to wring every last penny out of the pound.

Insurance is never top of anyone’s spending list but isn’t something to skimp on, as you never know when you will need it. However, that doesn’t mean that you shouldn’t find ways to reduce how much you pay without compromising on cover.

To stay legal on the roads it is necessary to have car insurance, a cost which has rocketed rapidly in recent years, even for those with exemplary records. But there are ways to try and combat the rising premiums.

It is common knowledge that points on your licence will lead to a higher premium but it’s not just drink driving or speeding that will rack up your insurance quote. Getting caught using a mobile phone is viewed very seriously by insurers and can double the amount you have to pay for your cover.

Adding a second person aged over 25 can reduce the premium with some insurers, as they take into account the overall risk. However, under no circumstances can this person be named as the main driver on the vehicle. This is an illegal practice known as fronting and is treated as a form of fraud.

Insurers often put more effort into attracting new customers than retaining existing ones because they know that most people can’t be bothered to switch providers at renewal. Therefore, by getting a ‘new’ quote from your insurer rather than just accepting the renewal premium, you may find you can shave a fair amount off what you have to pay.

Contents insurance is not compulsory but cover can be relatively cheap and going without simply isn’t worth the risk. For those with a mortgage, the lender will insist on buildings insurance but there is no rule that says you must take out the cover they offer. Getting it elsewhere is perfectly acceptable. However, some lenders will charge an administration fee if you choose to do this, so remember to take this into account.

The cost of both contents and buildings insurance is partially based on the post code and quotes are also based on the individual insurer’s past experience. This means it can vary significantly between insurance companies, so it is always worth shopping around.

In some cases, it works out cheaper to bundle the contents and building insurance together but in other cases it can be cheaper to purchase them from separate providers. Getting a number of different quotes online can show you the most cost-effective option for you.

Finally, don’t over-insure yourself. When it comes to a claim, you will only get paid what you have lost, so inflated values just mean an increased premium. You may also find that you don’t need to cover your property for its market value but just for the cost of a rebuild, which will usually be substantially less.

With a few careful tweaks here and there, it is possible to reduce the amount you spend on insurance without leaving yourself exposed. However, it is important to always be honest when you take out a policy, as even a few white lies will lead to a claim being rejected and could leave you with a huge bill.