Saving money always seems like a good idea. After all, if you spend less on certain things then you can spend more on the things that matter to you. It certainly makes sense to use a reputable car insurance comparison site, such as mozo to check out some of the best deals currently available.
But, before you get a new car insurance quote and take the cheapest one on offer, it’s important to consider all the options:
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Mid Policy Changes
It is rarely a good idea to switch car insurance part way through a policy. Not only will you lose the no-claims benefits you’re accumulating, but you’ll also likely incur a financial penalty.
If you take a look at the fine print in your policy you’re likely to discover there is a financial penalty for quitting before the end of the policy. Although there will be exceptions, simply saving money won’t be one of them.
You should always look at the fine print, the financial penalty is likely to wipe out any savings you make changing policy.
What Does The Policy Offer?
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Assuming you’ve waited until near the end of your current policy you can perform a search with a reputable comparison site, as indicated above.
However, you should note that the price isn’t everything. Before you take any policy you should check what it includes. A more expensive policy with higher levels of cover could save you a lot of money if you break a windscreen or have an accident that is your fault.
You’re not saving money if it’s likely to cost you more when something goes wrong. Of course, you can hope that nothing goes wrong. But, if it does it could cost you a significant amount and you’ll wish you’d taken the other policy.
If you’re looking to reduce your car insurance premium to save on your monthly bills it may be wiser to look at what other monthly subscriptions you have that can be eliminated. Most people have a membership they don’t use or a larger television package than is needed.
Reducing them will reduce your bills without affecting the quality of your car insurance cover.
Reputation
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You should also consider who is offering the insurance. A reputable and well-known company is generally a safe bet. After all, they have a reputation to protect and will do their best to look after you.
If you’re not sure who the company is then do some research. Speak to family and friends, as well as taking a look on social media. You’ll get honest feedback which will help you to decide if the company is good or not.
Sticking with a reputable company, even if the cost is higher, will give you peace of mind. In the event of an accident or theft of your car you know you’ll get the best possible service. Considering your vehicle is probably essential for getting to work and dropping children at school, if you have an issue you’ll be glad that you paid a little extra. It’s impossible to put a price on the convenience of insurance issues being resolved quickly and cleanly.
Coverage
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Alongside checking what is covered on your policy, you should also check whether other drivers are included. This is particularly relevant if you ever let someone else drive your vehicle. When they are not on your policy it can be expensive to add them for a short period or partway through the policy. That can eliminate the cost savings and even make the car insurance more expensive than you were previously paying.
It’s also important to make sure you are covered in all the situations you are likely to find yourself in.
The Full Package
Sometimes saving money, especially if the sum is low, isn’t as beneficial as staying with a firm that has all your existing policies. One of the biggest risks if you start to move your policies to other brokers is that you’ll lose a discount for having your policies with one broker!
You may not realize this is an issue when you move your car insurance, it will only become clear when you renew one of your other policies. The increase in cost then is likely to outweigh your car insurance savings.
Changing Vehicle
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Most insurance companies will charge you a premium if you change your vehicle partway through the policy. This is on top of the adjusted premium. If you’re considering changing your car in the next year it’s worth taking a look at your policy details and even speaking to your broker.
If you’ve been with the same broker for a long time and have a good reputation with them, they may waive the change of policy premium. It’s worth knowing if this is the case and how much the charge would be. It can influence your decision regarding whether to change to a cheaper car insurance policy or not.
Final Thoughts
Don’t forget, a cheap car insurance quote is fine unless you need to claim. That’s when you’ll discover why it is cheap.
It’s also the reason why you should verify what’s included in a quote before you commit. If you get it right you’ll have been smart and made a genuine saving on your car insurance. There are plenty of reasons to reduce your car insurance and you should always use a comparison site to help you check what deals are available.
But, it’s also essential that you verify the deal is as good as the one you already have. If it is and isn’t going to cost you more in the long run then changing your car insurance provider is a good idea. Just make sure you give yourself plenty of time to investigate the options and read the small print.
The real takeaway is to do your homework. Saving money is always a good thing, but, you need to be certain that you really will be saving money. Then you can commit to your new policy.
