Four ways to save by comparing car insurance

	Compare leading motor insurers

A recent report by research company Mintel has found that more people than ever are now shopping around and comparing car insurance year on year.
 

Although important to shop around, it’s also vital to ensure you are getting the right level of cover for your needs, and that involves comparing car insurance policies on more than just price alone but also on the features offered.  To help you make the right choices we have drawn up a list of the top 4 tips to look out for when comparing car insurance quotes.
 

1 Check your excess – Some insurance companies will produce a much lower quote in return for you choosing to pay more upfront in the event of a claim.  This could be in addition to any voluntary excess you may opt to pay.  Of course you may be happy to take the gamble and should you make a claim share the cost with the insurer, but check the excess before you buy
 

2 Check the benefits – Benefits such as windscreen cover, driving abroad and driving other cars may be included in your policy and these are areas that we some of us take for granted. However we have very little knowledge of what protection they provide us with, and in some cases you may be required to pay an additional premium for these to apply to your policy
 

3 Look at the payment terms – To aid budgeting many of us will opt to pay our car insurance on a monthly basis, however this can in a lot of cases cost more.  It’s not uncommon for APR rates of 20-30% to be charged for the benefit of paying monthly for your insurance, this can be as much as an additional 15% of your annual premium over the year!  Instead check the payment terms you require and if necessary look to spreading the payments out over a 0% credit card, or look for an insurer who offers interest free payments, it could work out cheaper over the year
 

4 Be aware of any add on’s – Additional features such as protected no claims discounts, courtesy cars in the event of yours being off the road and legal cover can all be purchased separately, although many quotes will preselect these options for you loading them onto your premium.  Consider whether you need these elements of cover carefully, courtesy car may be vital to you as it keeps you on the road, however you may have legal cover with a separate bank account or credit card.

There is no one overall insurance product that is good for everyone.  What may suit one person doesn’t the next, however it is important to be aware of what you are buying and agreeing to when you sign up for your annual car insurance policy.  Comparing car insurance policies not only on price but also on benefits will then give you some comfort that should to worst happen and you have to make claim, you are fully aware of what is and isn’t covered.

For further advice on reducing the costs of motoring, also read our guide to car insurance and car insurance money saving tips.

2009-07-06 13:44:01 © Moneyextra.com

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