If you’ve been with your car insurance provider for more than a year, chances are you’re paying over the odds. Unfortunately, loyalty is not rewarded in the insurance industry: it's typical for insurers to offer their best prices to new customers and charge existing customers higher prices at renewal. While auto-renewing might seem like the easy option,on your annual policy.
We suggest you make a note of when your insurance is up for renewal, and look out for a letter or email from your insurer. This should arrive around 3 weeks before your policy is up for renewal, (this happens to be the best time to renew) and it’ll tell you what new price your insurer is offering you. This gives you the chance to find a cheaper deal before you’re automatically tied in again.
Check out our other top tips for getting the best price on your car insurance premium.
It’s not widely known, but the price you’re offered for car insurance is partly based on your credit risk. This is because assessing your credit risk (which is affected by things like your payment history and the types of credit you use) can help companies better predict insurance losses. Along with things like your age, address and vehicle’s value, insurance providers look at a range of factors to decide how much of a risk you pose. They then use your risk level to calculate your quote.
While a high credit score doesn’t guarantee you’ll be offered cheap car insurance, giving your score some TLC before applying could bring down your perceived risk, and consequently the price you pay for your premium. Follow our [10 steps to a great credit score](<) if you’re in need of some inspiration.
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Where you keep your car overnight is a major factor affecting your car insurance cost. Maybe surprisingly, parking your car in a locked garage isn’t always a guarantee for the cheapest policy. This is partly because insurers know that burglars have instant access to your car once they’ve broken into your house, as people often leave their car keys near the front door. They’ll take this into account, particularly if you live in an area with a high number of burglaries.
Generally, parking on a driveway is cheaper than on the road. That being said, rating factors vary from one insurer to the next. So if you live in a busy, built-up area, or an area with high crime levels, you might be better off parking your car in a garage rather than on the road. Or, you could get a cheaper price simply by parking your car a few roads away, in a less crime-heavy street.
When you buy car insurance, you’ll be asked to confirm your excess. This is the amount of money you’re prepared to pay out towards a claim before your insurer contributes. One way to bring down the cost of your premium is to increase your excess. Because you’re willing to pay more towards a claim, this means your insurer will have to pay less, so they’ll often reward you with a cheaper premium.
But there’s no guarantee with this one - a higher excess doesn’t always equal a cheaper price - and it is a bit of a risk. No one knows what will happen in the future, and not all accidents are within your control. So make sure you can afford to pay the amount you’ve agreed to, in the case that you need to.