Car Insurance, home insurance, health insurance, holiday insurance – we know they are important but it is a cost we all pay through gritted teeth. We mostly think that we are never going to be claiming (touch wood) and therefore we begrudge paying out. However insurance is one of those vital things that we need to budget for and is a legal requirement when owning a car. I was very ill once on holiday and did need to go to a local hospital, I needed antibiotics and was nearly kept in the local hospital as I had a nasty infection. It was my first holiday abroad and it was a pretty horrid experience to be so ill and so far away from home. However it taught me that it is always important to have that safety net of insurance. I dread to think how much it could have cost me otherwise. We are the same now and I have to always make sure that the insurance covers our specific needs, especially for Erin who has had multiple surgeries and health issues.
However no matter which insurance you are getting cover for there are ways to ensure that you get a good deal, especially for car insurance which is one of the biggest costs we have to pay. Follow these tips to get a good price.
- Shop around, never accept your renewal always speak to them. There is no such thing as customer loyalty!
- Protect your no claims bonus. This is built up each year after no claims and reduces your premium.
- Take out the highest excess that you can afford as this reduces your quote. I go for a mid range excess to get a better deal.
- By keeping your car off the road at night it will reduce your quote. Park on a drive way or in a garage for the best rates.
- Pay in a yearly fee if possible as paying monthly increases the overall price. It would be better for example to pay in full on a credit card and then pay off the credit card without having interest added.
The Co-Op Hub has put together a great video tutorial that demonstrates just where the money from your car insurance goes. Whilst this doesn’t reduce the cost it does make it easier to accept it when you understand where it is going and what it is spent on. Half of motorists in the UK believe that car insurance is too complex to understand and this video is just the start of the journey to make insurance simpler.
Do watch it and let me know in the comments what you think.