According to the Association of British Insurers (ABI) data, the average driver paid £485 a year in the third quarter of 2017 for comprehensive car insurance. Roughly, they paid £40.41 a month for 12 months. But is it really worth paying that much? Especially, when most of us pick car insurance providers based on recommendations from our friends and family. Other times, we decide to go with the one that airs the most ads on TV. Things go further downhill for those of us who pick up the easiest route and sign up with the first insurance provider they come across.
But is it a good idea to entrust a company with less than a stellar reputation with your safety?Like most businesses, insurance comes in a variety of flavors. Each company has its own rates that correspond with specific types of coverage.It isn’t smart to compare two policies from different companies even if they are priced the same and claim to offer similar coverage.
Are you looking for a car insurance provider? To assist you and ensure that you aren’t walking into the process blindly, we present the following points of note:
1. Consider these must-have features
An excellent insurance provider would throw in windscreen cover and offer it at the market value. With this protection, anytime your windscreen gets damaged, it will be replaced or repaired once you have filed a damage claim.
2. Consider these should-have features
A great insurance company would also offer new car replacement. That means in case of a theft, an accident, or a fire,your insurer will replace your car with a similar new one. This is true for when the cost of repairing your old caris higher than the retail price recommended by the manufacturer. Any good policy will cover up to 60% of list price and ensure that the car you receive is at most one year old. Of course, certain conditions should be met for you to be eligible for this feature. Talk it out with your insurance agent.
- Consider these could-have features
We Buy Any Car thinks that any insurance provider worth their salt should also offer the driving abroad feature. Also known as foreign use, this policy will extend the coverage you have paid for even if you are driving abroad. Great policies allow you to add this your standard policy. Alternatively, it is already included within the standard coverage. You might want to check out which countries are listed within the policy before you go on a road trip!
4. Consider the prompt for review
At the end of each year, your vehicle has gotten older. That means the coverage that you needed when it was new and shiny probably doesn’t make sense now.Since you may not have the same needs at present, why should you keep paying for the same coverage?If your insurance provider rings you up to review your policy, they are a keeper! If they don’t, you can still revisit the coverage you have and lower the ones you don’t need. You’d end up saving a lot of money that way!
5. Consider the relationship between auto insurance and ride-for-hire businesses
We don’t all use our vehicles for the same purpose. For some of us, they are just a way to get from point A to B. For others, they are a way of making money. Running a ride-sharing business has become a lucrative way to earn money. If you are thinking about it too, make sure you bring that up with your insurance agent first. That’s because it is highly likely that by doing so, you are voiding your car insurance coverage.
For instance, your coverage is for yourself, and most policies have a specific portion dedicated for the use of the insured vehicle “for hire,” a “livery” exclusion, or “for a charge.” That means you are clear to use the vehicle to drive yourself around. But things become different when you are transporting people for payment or goods. How can that become a problem you ask? For starters, you will be held liable for any accidents that occur while you are using your vehicle to earn money. Find out all about ride-sharing here.
6. Consider not buying an insurance trap car
A good insurance agent who cares about their customers will let you know if your car is an insurance trap! Certain models, such as sporty cars fall under this category. That’s because they can attract a high premium. Instead of buying that and paying much more than you should, your agent should advise you toget a different model. You will also save on petrol costs if you get a car with a smaller engine.
7. Consider switching insurance providers often
This past year, the prices of car insurance have been fluctuating. In the beginning, they had reached a record high, but now they have dipped again. This may be related with the hike in the average premiums that car owners have to pay. They have decreased by 11% and have reached £752 now. But isn’t that good, you ask?Not necessarily because research shows that more than 60% of drivers in the UK are paying the price for their loyalty to their insurance providers!
Many of us don’t bother reviewing our insurance coverage at the end of the year. As mentioned before, it is a measure that could end up saving us a lot of money. Additionally, if people renew their average premiums between April and June by staying with the same insurance provider, they paid £49 more!Similarly, 58 percent of drivers who have insurance were staying with the same insurer. It might be time you reviewed your loyalty program with a keener eye!
Finally, the research also shows that it is possible for drivers to save up to £613 on average. If you want to take advantage of such an opportunity – and stick with your insurance provider – you can renew your policy 21 days before the final date. By not doing so or paying up on the day of renewal, you could find yourself paying £1,264, i.e., twice as much!
Are you ready to go find the best insurance company in town? We hope these pointers will help you find a car insurance provider that fulfills all your needs!
Audrey Throne is a mother of a 3-year old and a professional blogger by choice. Throne is passionate about lifestyle, business, automotive, technology and management and blogs frequently on these topics.
Find her on Twitter: @audrey_throne.