The cost of car insurance premiums are expected to rise dramatically in 2010 with some major insurance news sites predicting up to 20% in premium hikes as the industry adjusts to large losses and claims in recent years.
However the competition remains fierce and those who bother to take the time shopping around and comparing prices from different companies will benefit while those who cannot be bothered will pay the price at renewal.
You have probably heard the phrase ‘brand new customers only’ applied to the television adverts that constantly bombard us with deals and offers for cheaper cover.
Nearly all the major car insurance providers in the United Kingdom are offering incentives to get you to move from your current insurer and take out a policy with them. You will need to check out these offers carefully and be prepared to take the time and effort to understand the ‘catches’ if you want to successfully reduce your premium each year.
There is no logical reason why your premiums should rise at renewal unless you have had claims, but if you stay with the same insurance company year on year out moving companies brooklyn of inertia, you can virtually guarantee that you will be paying more to cover the costs of the incentives offered to the ‘new business or the claims of other people who are insured with the same company.
In the UK car insurance companies seem only concerned with how much volume of new customers they can attract and once they have your premiums you are no longer of interest to them. So if you want to save money on your car insurance it is necessary to change insurer every year!
About a month before your renewal date you should receive from your existing company an invite to renew, which in most cases will be automatic unless you cancel the policy. This is the time to start looking elsewhere for cheaper quotes for the same level of cover. Most quotes are legally valid for thirty days from the date they were given, which will allow you plenty of time to compare the car insurance market before cancelling your policy and obtaining cover elsewhere. The invite to renew document will also contain proof of your no claims driving history and the number of years discount you are entitled to. Keep this document safe as you will be required to produce it when moving to another insurance company as proof of no claims.