How to get the best car insurance

You may not realise it but your current car insurer will automatically renew your car insurance policy as your renewal date passes. This is a precautionary measure - remember if you drive a car, car insurance is mandatory and your insurance company is ensuring that you do not break the law.

However, if you are thinking of looking for a better deal you had better make sure that you cancel your previous policy to avoid paying twice - it's a common mistake and one which can sometimes go unnoticed.

Motor insurance up for renewal? Check out the latest rates now

As your car insurance renewal date approaches, you can expect to receive a renewal notice through the post. This will remind you of your renewal date and quote you a premium to continue the cover for another 12-month term. If you don't want to renew your car insurance with the same provider, you must inform them. Otherwise, your insurance will roll over for another term whether you like it or not!

So, is the obvious thing to do just to let the insurance roll around? No! If you let your renewal pass each year without looking around for a better deal, you could be missing out. Heres why:

• Loyalty won't buy you much many insurers concentrate on getting new customers, offering discounts not available to existing drivers on their books.
• Circumstances change - yours and your insurance company's. You may have moved, changed jobs, even be unfortunate enough to have new insurance claims or even driving convictions. Your insurer may have changed its stance on the type of risk it wants to insure. Just how competitive your motor insurance is compared with last year could have changed.

How to get the best car insurance

Shop around - it should be obvious. You would shop around for the right car at the right price; you should shop around for the right car insurance too!

Don't 'pimp your ride' - unless you're prepared to pay for the privilege. Modifying your car will almost certainly increase your premiums and cut the number of insurers prepared to take you on. If you modify your car without telling your insurer you may invalidate your insurance.

Be safe - don't drive like Mr Toad. You'll build up a substantial no-claims discount that could cut your insurance premium to a fraction of the full price.

Be secure - fit an alarm (if there isn't one). Park your car in the garage if you have one and dont leave valuables in the vehicle.

Be excessive - opt for a voluntary excess. Choosing to do so or even increasing the size of the excess will reduce your insurance premium.

Be honest - a car insurance contract is a legal document. If you lie and get caught out you'll lose the insurance cover, will find it difficult to get new insurance and you could end up facing legal proceedings.

Automobile breakdown and car recovery cover, roadside assistance and repair service.

Don't break the law for your kids

It's been estimated that more than two thirds of parents would consider breaking the law by insuring their child's car in their name. The practice, known in the insurance industry as 'fronting', is technically fraud and the consequences if caught are serious for both you and your offspring.

If you are caught 'fronting', your insurer has the right to cancel the policy or charge the correct premium as a lump sum. Drivers who have had a policy cancelled will have to declare this on any future applications and will find getting insurance more difficult and more expensive in future.

Insurers can also refuse to pay-out for any claims or can settle a third party claim and recover the cost from the parent as the policyholder. If the insurer declines a claim, the young driver could be treated as uninsured and could be fined hundreds of pounds and receive six penalty points (an automatic ban for new drivers).

If you're looking to insure a younger driver, remember that generally, the lower the engine capacity, the lower the premium - ideally an engine size of less than 1200cc is best. Also, avoid models with letters after the name, for example i, sxi, gti or xl.

Newly qualified drivers should also consider taking the Pass Plus training course which is designed to give them additional practical driving experience. Once completed succesfully, the course normally entitles drivers to reduced insurance premiums.

See how much you could save - get a student car insurance quote today!

21 September 2007 © Moneyextra.com

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