1. Think insurance when buying a car
If you’re about to buy a new car, it’s worth taking a moment to find out how your choice will affect the price of your car insurance. Why not try a few quotes online and see how the prices vary?
You may not realise, but a more expensive car is sometimes cheaper to insure. This doesn’t mean fancy sports cars; it’s safe, reliable cars. For example, having advanced security including an alarm, immobiliser or tracker in your car can help you get a cheaper premium, as you are less likely to be broken into, or more likely to get your car back if it is stolen.
Also, if your car has been imported or modified (other than by the manufacturer), this may prevent you getting an insurance quote, so be sure to know the facts before you choose your next car.
2. It’s cheaper to pay in one go
When you agree to pay for your car insurance in monthly instalments, it’s a bit like taking out a loan. The entire cost of the premium is essentially lent to you, and you pay it back bit by bit. However, as is the case with any other loan, it’s not free.
An interest rate is charged on top of the total price, so this will increase the total amount you’re paying. Obviously for a lot of people the full cost is too much to pay at once, but if you can pay annually it is cheaper for you in the long run.
3. Don’t keep quiet when your details change
Your car insurance premium is worked out according to the risk you pose to the insurer. However, this is not just about you as the driver – it’s also the risk involved with the area you live in and the car you drive. So, if either of these changes, your premium might change as well.
Remember – the price could go up or down, so you could get some money back. Either way, you must tell your insurer if anything about you or your car changes otherwise your policy may not cover you when you need it most.
4. Porky pies aren’t worth it
You may or may not be aware of the term “Fronting”. This is where an older driver is falsely listed as the main driver in order to get a cheaper premium. It often happens among young drivers who register a parent as the main driver and themselves as the named driver in order to reduce the price of their premiums.
Fronting is in fact against the law and in the event of an accident can leave the vehicle uninsured. This would expose the policyholder to the possibility of having to meet the costs of a claim themselves, and also result in a motoring conviction.
In reality, fronting is likely to actually end up costing much more that the cost of insuring the vehicle on the correct basis.
5. Insure it or SORN it
It might seem strange that you have to insure your car even if you’re not driving it. However, if a vehicle does not appear as insured on the Motor Insurance Database (MID) the registered keeper will be sent an Insurance Advisory Letter (IAL), explaining the penalties involved if they do not purchase a valid insurance policy.
This does not apply if the vehicle has been declared ‘off road’ by a Statutory Off Road Notification (SORN). So if you have not filled in a SORN for your car, it must have valid insurance cover.