How to Avoid a Car Insurance Renewal Rip-Off

Whether it’s car or home insurance, the sight of your annual premium review letter can induce feelings of apathy, frustration or even panic. Many of us simply renew with the same insurer wrongly assuming that we have little control over the price quoted and believing that because the original premium was competitive, the renewal offer will be too.

In fact, all too often the opposite is true. With a little knowledge of how insurance renewals are priced you can take control of your premiums and actually look forward to saving money next time that renewal letter drops on your mat.

One of the first points to remember is that insurers will commonly offer their best discounts to attract new customers which aren’t repeated at renewal time. In effect, existing customers are subsidising the discounts enjoyed by new customers.

How to avoid renewal rip-off’s

So, next time you receive a renewal quote, don’t just accept it, prepare and compare. Get online at least two weeks in advance of your renewal date and use a minimum of two price comparison sites to shop around. It only takes twenty minutes or so to compare your renewal quote with hundreds of policies from across the market and, if your existing insurer doesn’t match up, make the most of those new customer discounts by switching to another provider.

One note of caution though; when comparing policies ensure that you compare like with like. There’s no point opting for the cheapest premium if the cover isn’t worth the paper it’s written on should you need to make a claim.

Depending upon how much effort you want to apply, you can reduce your premiums further by making yourself a lower risk. Simple changes like parking your car in a garage or enhancing it’s security will help you to pay less now and in future years.

One measure that requires a little less planning is to add a low risk motorist to your policy as a named driver. So if you know someone who is over thirty, ideally a female, get quotes with them as a named driver on your policy and you could save as much as 10%. Doing this has the effect of averaging out the risk across all drivers on the policy so reducing the premium.

For more money saving tips like this visit http://www.uk-insurance-index.co.uk/car-insurance-companies-1.html where you’ll find step by step guides plus customer reviews of big name motor insurance providers like money supermarket.

Simon_Christopher


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