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This powerhouse system severs car insurance costs – so powerfully the record result is 96p a year for fully comp. First, combine comparison site results to massively increase the number of quotes, then grab hidden cashback.
You needn’t be at renewal either, provided you haven’t claimed, most policies can be canceled with a refund; a few do charge penalties, but you’re still likely to save.
By reducing an insurer’s perception of your risk, you can reduce the price you’ll pay.
Compare Car insurance rates are set by actuaries, whose job is to calculate risk. Each insurer’s price depends on two things; their underwriters’ assessment of your particular risk focus, and then their own pricing model that dictates what customers they want to attract. See the following for ways to reduce your risk:
It’s worth considering going for a policy with a higher excess (the amount of any claim you need to pay yourself). Many people will find that claiming for less than £500 worth of damage both increases the future cost of insurance and can invalidate no-claims bonuses, meaning it’s not always worth making a claim.
So why pay extra for a lower excess? A few policies will substantially reduce premiums for a £1,000 excess, so try this when getting quotes. The downside of this is if you have a bigger claim you’ll have to shell out more, so do take this into account.
Comparison websites are all the rage as drivers bid to save money on their motoring costs. However, how do these websites work and do you have to pay more to use them?
Turn on your television these days and you can’t escape from the advertising campaigns of a host of UK-based comparison websites. For most of these websites, their focus revolves around one leading product – car insurance.
The theory behind a car insurance comparison website is certainly a noble one. A user comes online, enters their details, and they receive quotes from a variety of providers helping them find the cheapest deal. However, the skeptics among you will wonder what’s in it for them? It’s clear that even though comparison websites are free to use, they must make money somehow.
The answer of course, is that they do. However, they don’t actually cost the consumer any cash. This is because comparison websites make the bulk of their money through two resources – advertising and links. Every time you click from a comparison website on to a provider’s website, the comparison website earns a little bit of cash – it’s almost comparable to a finder’s fee in that they are putting your custom the way of the insurer.
The beauty however, is that this extra cost is not passed on to the driver. In fact, many car insurance companies even offer better deals through comparison websites than they do on their own company websites because it is so important to appear near the top of the ‘best buy’ tables.
So it seems that comparison websites are to be celebrated because they genuinely save consumers time and money. However, drivers should still be cautious in their approach to these websites.
That’s because comparing deals on the basis of which is the cheapest won’t necessarily help you bag the best deal. For example, one car insurer may be cheaper than the other – but this may only be because its cover is far less extensive.
Thankfully some car insurance comparison websites list product features and some even offer star ratings to help you compare car insurance by more than just price. So make sure you find not only the cheapest deal, but the right deal for you.
