This is a short and comprehensive guide to assist you in finding the cheapest and most suitable insurance to suit your individual needs.
These 5 easy steps can help you save a lot of money on your insurance premiums.
Step 1 - In the beginning When you begin, use the tools available to SHOP AROUND.
I cannot stress the importance of shopping around enough! Use the Internet, use companies and websites that do comparative quotes and if you need to, pick up the phone and call around.
Although it may seem tedious, it could save you thousands every year.
Step 2 - Level of cover Deciding how much cover you require can be tricky.
Do you need comprehensive cover or just fire, theft and 3rd party? The deciding factor in this should be your current financial status as well as what kind of car you are insuring.
In the event of it being a brand-new sports car and you know in your heart that you have a tendency to speed, you may want to consider comprehensive cover.
If, however, you have an older, paid off car that would not necessarily be bait for car thieves, you may want to consider collision and 3rd party only.
Just keep in mind that you must be able to afford the premiums! Step 3 - Remember the 'bad' things you did on the road! It is easy to forget about your speeding tickets, but it is important you make sure that all your tickets are paid up in full.
If you had an accident, it is usually best to wait a couple years before switching insurance companies.
After 3 to 4 years of not claiming you are classified as a lower risk and are given better rates by your current insurer as well as other insurance companies.
Step 4 - Compare quotes This is an incredibly important step.
In fact, it is one of the most important things you can possibly do! Try telling competitor insurance companies what the other companies quoted you.
By making them aware that you are shopping around and comparing quotes it may 'motivate' them to give you a better deal.
You never know, they may just throw in an additional discount for you.
Step 5 - Choosing your policy Remember that choosing the cheapest policy is not necessarily the best option.
Read all the fine print and make sure you are covered adequately.
Make sure that they will use new and genuine parts if you are involved in an accident.
It is also vital to compare levels of cover and not just premiums.
Some policies are cheaper, but have a higher excess.
It is pointless to have insurance if you cannot afford the excess when you need to claim.
Finally, consider getting an insurance broker to explain all the parts in the contract that you may not understand.