Published: 29/06/2010

£20 cash back with Moneynet car insurance – how much can you save?

Are you being charged for cover that’s no longer relevant – many of us will shop around for a cheaper deal when we receive our renewal notice, but when was the last time you checked the details of the cover you are actually paying for? 

A lot of people won’t have looked at their policy details for years even though their circumstances may have changed.

Perhaps you’ve changed your job which means that your commute to and from work is now shorter and therefore your annual mileage is now lower than the allowance you’re paying for on your policy.
The higher your annual mileage the more chance you have of an accident and therefore the higher your premiums, so it’s important to get this right.

To get an idea of how much you’d save, input your new mileage on the Moneynet car insurance search
Another area that can increase the cost of your cover is if you have Additional Named Drivers on your policy. Just check to see who is named on your policy and consider if they really need to be included on your insurance any more.

Consider opting for a higher excess- The excess on a policy is the amount that the insurance company will deduct from any claim you make. For example, if you make a claim for £500 and there is an excess of £150 the insurance company will pay out only £350 leaving you to pay the excess. Excesses usually vary between nil and £500 and the higher the excess, the cheaper your premium will be. When you get your quote ask for a range of prices with different excesses and see how much you can reduce your premium. But just bear in mind, the higher the excess the more you will have to contribute to any claim.

Don't Pay In Instalments- There are usually added costs if you choose to pay your premium by monthly instalments. If you can afford it, reduce your premium by paying the annual cost up front.

Beware of Added Extras- your insurance provider may try to add little extras – usually just before you agree to sign on the dotted line. It’s a simple ploy for them to extract a little more money from you before you hand over your credit card details.

There isn’t anything wrong with these extras, as long as you’re sure that you need them and aren’t paying over the odds for them.  For example, if you’re adding breakdown cover, check out how much it’s being offered for by the RAC, Green Flag or the AA. If you can get it cheaper elsewhere, then do. Insurance companies are often banking on you not doing your homework and – as you might be getting a good deal on the cover itself – assuming that the extras are the cheapest too.

Build up Your No-Claims Discount- One of the best ways to reduce your premium is to drive carefully and avoid accidents. In this way you will build up your no-claims discount and reduce the premium payable. You can usually start building up your no-claims discount after one year of claim-free driving. After one year you could expect a reduction in your premium of 25-30%, building to a maximum of up to 75% after 7-8 claim-free years, although the exact amount of discount and terms will vary from insurer to insurer.

Choose a Car With a Low Insurance Group- All cars are rated and grouped by insurance companies in order to determine the insurance premium charged. Groups go from one for the lowest price insurance right up to twenty for the most expensive. You can check which group your car falls into at http://www.parkers.co.uk/insurance. If you're happy with a car in a low insurance group you will definitely save money on your insurance and in many cases you’ll also benefit from cheaper car tax and a lower fuel bill too.

Protect Your Vehicle- By fitting approved alarms and/or immobilisers you not only protect your vehicle from thieves but you will also qualify for a discount from many insurance companies.

Consider Third Party Fire & Theft Insurance- If your car is of low value you may find it more cost effective to opt for third party fire and theft insurance rather than fully comprehensive. Whilst this could leave you to pick up the bill for repairs to your own car if an accident is your fault the risk might be worth considering if the difference in premiums is great enough.

Think About Where You Park Your Vehicle Overnight- If you can get your car off the road and onto a driveway or tuck it away in a garage overnight you could be eligible for a reduced premium. But, don't be tempted to lie about it because the insurance company will refuse to pay out if the car is stolen and you can't prove where it was parked.

Never renew your policy without checking out the prices elsewhere- Always shop around for your cover as premiums vary considerably. Never accept the renewal quote offered by your existing insurer without comparing with other providers - loyalty rarely pays when it comes to choosing insurance or other financial products.

Even if your car insurance renewal isn’t due quite yet, take a look at the Moneynet car insurance page to compare cover from over 90 leading insurers in one simple search, at least you’ll get an idea of the potential savings you can make, in readiness for when your current policy expires.