Can you save on car insurance?No one likes getting rolled over into a new year of insurance at a new higher cost. You can take steps to avoid this and find yourself a better deal.
Wed 07 Jun 2023
5 min read
We’re all busy people and something like car insurance is pretty dull, but extremely necessary to have in place at the right time and to make sure you have the cover you need at the best price. People are often on an auto-renewal with their insurer and all of a sudden they get rolled over to another year, an increased premium and it’s all too much aggravation to challenge.
But, if we had time and a way to make it easy, wouldn’t it be better to make sure we’re on the best deal every time it comes around?
What to do when your car insurance is up for renewal
When your car insurance is up for renewal, there are several things you can do to help make the right decisions:
- Review your current policy: Take the time to go through your existing car insurance policy and understand the coverage, no claims bonus, limits, and any additional benefits it provides
- Assess your needs: Think about any changes in your circumstances since you last purchased insurance. Have you moved, changed jobs, or bought a new car? And also consider your driving habits, the value of your car, and your risk tolerance to determine the coverage you need
- Shop around: Don't settle for renewing your policy without exploring other options. Get quotes from multiple insurance providers to compare prices, coverage, and customer reviews. You can do this by using online comparison websites
- Evaluate coverage options: Think about the types of coverage available and choose one that suits your needs. Many providers enable you to adjust the coverage limits and no claims bonus based on your budget and requirements
- Check for discounts: Ask about any available discounts that could help reduce your premium. Some common discounts include safe driver discounts, multi-policy discounts (if you have multiple policies with the same insurer), good student discounts, and low mileage discount
- Review policy details: Carefully read the terms and conditions of the policies you're considering, before switching. Pay attention to exclusions, limitations, and additional fees or charges. Understand the claims process and any potential penalties for early cancellation
- Ask: If you're unsure about any aspect of your car insurance or need help in understanding the policy terms, ask an insurance agent or representative who can guide you through the process and answer your questions
- Make an informed decision: After comparing different policies, coverage options, and prices, choose the car insurance policy that best meets your needs and fits your budget
- Renew or switch: Once you've made your decision, either renew your current policy or switch to the new insurance provider. Ensure a smooth transition by notifying your current insurer if you decide to switch and make sure you understand any cancellation procedures.
The renewal period is an opportunity to reassess your insurance needs and potentially find better coverage or rates. Some other tips:
- Start the process early: Avoid leaving the renewal until the last minute. Begin the process a few weeks before your current policy expires to give yourself ample time to compare options and make an informed decision
- Make secure payments: When making payments for your renewal, make sure that you’re using secure methods. Avoid sharing sensitive information over insecure channels and use trusted payment platforms or official websites. Be cautious of phishing attempts and verify the authenticity of any communication you receive. Watch out for scams
- Keep documentation: Maintain a copy of all documentation related to your car insurance renewal. This includes policy documents, payment receipts, and any correspondence with your insurance provider. Having a record of these documents can be helpful in case of any disputes or claims in the future
How can I make my car insurance cheaper?
There are several ways to lower the price of your car insurance. Here are a few:
- Obviously shop around: Get quotes from multiple insurance providers to compare prices and coverage options. Different insurers may offer varying rates based on their underwriting criteria, so it's worth exploring different options to find the most affordable
- Increase excess: Consider raising your excess, the amount you pay out of pocket in the event of a claim. Increasing the excess can lower your premium. But, make sure you can afford the higher deductible amount if you need to make a claim
- Bundle policies: If you have multiple insurance needs, such as home or renter's insurance, consider bundling them with the same insurance provider. Some insurers offer discounts for bundling policies, which can result in overall savings
- Be a good driver: Maintaining a clean driving record free of accidents and traffic fines is helpful. Insurance companies often offer lower rates to drivers with a history of safe driving. Consider taking defensive driving courses to improve your skills and potentially qualify for additional discounts
- Opt for a safe vehicle: The type of car you drive affects your insurance premium. Vehicles with high safety ratings and advanced safety features tend to have lower insurance costs. And sports cars and luxury vehicles generally have higher premiums due to their increased risk and repair costs
- Consider usage-based insurance: Some insurance companies offer usage-based insurance programs where your premium is based on your driving habits. This involves installing a telematics ‘black-box’ device or using a mobile app to track your driving behaviour. Safe driving habits, such as maintaining lower speeds and avoiding abrupt acceleration or braking, can lead to discounted premiums
- Look for discounts: Ask about available discounts. Common discounts include safe driver discounts, multi-policy discounts, good student discounts, low mileage discounts, and discounts for anti-theft devices or safety features in your car
- Review your coverage needs: Assess your coverage needs and adjust them accordingly. For older vehicles with lower values, you may consider dropping comprehensive and collision coverage and making it third-party only. But bear in mind the potential costs of repairs or replacement if you choose to reduce coverage
It’s good to review your car insurance annually or when significant changes occur in your circumstances to make sure you’re still receiving the best rates and coverage.
Make the most of your data
Rightly Save is a new service that automatically finds all your insurance policies and presents them to you in a single place, complete with renewal dates and the type of policy. Then we’ll set up automatic reminders so you get plenty of notice of all your insurance renewals, whether for car, home, travel, pet or any others you even have forgotten about. That way you’ll have a chance to find a better deal before the company rolls you into a new year and a new price which you may not have had time to look at until it’s already done.
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Don't you just love car insurance!
It’s not the most exciting thing, but if you have a car, you have to have insurance. When the renewal comes around we don’t always pay much attention to the mail that arrives from the insurer. Some people are on automatic renewals and before they know it, two or three years have passed and the premium has crept up and up. Or others forget to renew altogether. But a better way is in reach.