Car insurance: Buying guide
Online car insurance quotes can be 10% cheaper than phone quotes
Most people know you can save money by shopping around for car insurance, but did you know insurers often hike up prices after the first year?
Shop around for your car insurance
Keep moving your business. A 56-year-old man and partner, driving a Ford Focus and living in a high-risk area, could save more than £500 by moving from a poor-value deal to one of our Best Buy car insurance policies, based on quotes for comprehensive cover.
Get quotes online as well as by phone if you can as internet quotes can be more than 10% cheaper than phone quotes. Don't be afraid to haggle or play one insurer against another too - some insurers will match or even beat your best quote so it never hurts to ask.
Don't overstate the value either as most insurers will pay only the current market value of your car if it's written off.
Speak to a specialist
Buying car insurance direct from the insurer works for most of us, but an insurance broker may be able to offer a better quote for young drivers or those with a high-risk car, such as a sports car.
Pay towards claims
You can reduce your annual car insurance premiums if you take out a policy with a bigger excess. This is the amount you have to pay towards a claim. Savings vary from one insurer to another so it's worth shopping around to find a deal that suits.
No-claims?
It's common sense not to claim for minor damage, as all insurers offer no-claims discounts (though you should still tell your insurer about any damage). The size of discount varies among insurers, but clocking up one year of no-claims usually saves around 30%.
Watch your mileage
Don't overestimate your annual mileage when getting car insurance quotes, and tell your insurer if you drive fewer than 12,000 miles a year or if you don't use your car to drive to work. Which? motoring editor Richard Headland says: 'I just saved £45, as my annual mileage has fallen from 15,000 to 9,000 a year.'
Pay in one go
If you can, pay your annual premium all in one go. It may feel less painful on the pocket to spread payments over the year but many insurers charge you interest - some up to 30% - if you take up this option.
If you run a second car then a courtesy car might not be a top priority
Cut out the frills
Some insurers offer basic policies – with no courtesy car, for example – at a lower price. This might be worth considering if you could live without one for a few days (say, if you have two cars). Liverpool Victoria and Swiftcover offer low premiums without a courtesy car.
Check the add-ons
Many insurers offer breakdown cover at an additional cost, typically around £65. This might seem tempting at the time, but consider whether you can buy it more cheaply elsewhere. Buying breakdown cover separately can save you money if you shop around.
Add another driver
Adding a second named driver living at the same address may reduce your car insurance premiums if they are experienced and have a good driving record.
Enhance your skills
Further driver training may help you get a discount on your car insurance. Some insurers offer discounts if you take further training, such as the Advanced Driving Test.
Bump up your security
Extra security features, such as an alarm or immobiliser, can cut your premiums. But check first with your insurer whether it offers a discount and, if it does, exactly what devices qualify. Most insurers will give you a discount if you park your car in a garage or driveway overnight, rather than leaving it on the street.