This is one of a series of articles provided by the MOT Chelmsford blog.
As a responsible, legal driver it happens to us all. Every year a letter arrives from your car insurer informing you of the renewal date and your car insurance premium for the coming year. In most cases, your insurer will make life really easy for you and you will be required to do absolutely nothing. Your insurer will automatically renew your policy for another year and simply debit your payment card or continue to take monthly instalments from your bank.
Unfortunately, if this scenario sounds familiar and you are one of the many drivers that allows this to happen you are almost certainly going to pay a price this easy option. The simple fact is that if you let your car insurance renewal pass by without looking for a better deal you could be paying far more than you need to.
Broadly speaking, most car insurers do not reward you for being a loyal customer. Instead, they concentrate their efforts on offering discounts to attract new customers. They then increase the premium the following year to make a profit. This is why you are likely to find that your renewal quote is more expensive than your original premium.
In today’s market place there is little excuse to not shop around for a better deal. There are a number of price comparison websites that can be used to search for an improved quote. Consider though, that a cheaper policy may not provide the same cover as your current insurer. For example, there may be a higher excess or your insurance cover may be limited. For this reason, it is essential to compare policies on a like for like basis and ensure that the policy covers you for the things that you consider important. In short, it is not a question of simply going for the cheapest.
Car security is also factor that will affect your insurance premium. Most insurers will offer a discount if you can park your car on a driveway or better still, in a garage, rather than on the road. Fitting an approved alarm, immobiliser or tracking device could also see further savings.
If you can afford to do so you should always try to pay the full amount for your premium upfront. Avoid monthly payments if you possibly can as some insurers are likely to charge between 10%-20% or even more for this service.
Finally, if you do find a new insurer offering a better deal be sure to inform your previous insurer that you wish to cancel your policy as you do not want end up paying for your car insurance twice.
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