How to choose your car insurance and save money

Compare premiums before you buy a car

If you’re buying a new car remember that it’s not only the monthly payment you have to squeeze into your budget, but its also the monthly insurance premium. And, if you’re financing the car, you have to insure it before you can get behind the wheel.

Pick a top-rated insurer

Saving money its not simply a matter of finding the lowest premium. You need to find an insurer that will have your back when the paw-paw hits the fan. And when your fan-belt breaks.Some insurers have lower premiums but end up costing you more because they cover less.Some insurers hide what they do and don’t cover in pages and pages of fine-print. But, some don’t. Pick wisely.

Report reduced mileage and remember what your garage is for

All insurers rate your risk and work out your premium accordingly. So, if you’re driving long distances in rush-hour traffic every day, your risk is high, and it affects your premium. But, if you clean out your spare bedroom and start working from home, your risk reduces and so should your premium.While you are at it, clean out your garage too, and park your car in it rather than on the pavement. Safer car = less risk = lower premium.

Adjust your excess

The higher the excess the lower the premium, but remember that you need to be able to pay the excess amount you’ve chosen if you claim.Can’t choose your excess? Rather find an insurer that allows you to select the excess that best suits your budget.

Combine your policies

Just like buying cheap toilet paper, discounted baked and spaghetti that’s on sale somewhere else can end up costing more in the long-run, covering your car, home and portable possessions with different insurers isn’t necessarily the cheapest way to go. There can be massive cost-benefits to covering everything under 1 roof.Some insurers even offer additional savings when you put more than 1 car on the same policy. Ask for ‘multiple car discount’ and factor in up to 20% off!

Look after your credit score

You really should look after your credit score as carefully as you would. Because having a great credit rating will positively affect your premium and could mean the difference between being able to afford a cabby rather than a Cub.

Check fine print to make sure you are getting exactly the same cover and benefits

Shop around for quotes but read the fine print.Get a number of quotes to help you negotiate the best price. Just be sure to get the same level of cover from your new insurer. If you are getting a better price, look carefully at the details to ensure you are getting exactly the same benefits. For example, check if the excess is a fixed amount or a percentage of the value of the claim, and whether your premium will change after you’ve claimed.

Make the deal and get it in writing

Once you have found the ideal insurer – a combination of price, value and service – be sure to get something in writing before you cancel your old one. Double-check that your new policy is active because the last thing you want is to have a gap in cover should you have an accident.

Cancel with previous insurer - be sure to get something in writing

Even if it’s not required, always cancel your policy in writing so you have a record of the requested cancellation in case the company continues to bill you. Cancelling itself should not cost you extra but your new insurer might charge a once-off administration fee.

Save your new insurer’s details

Display your new insurer’s towing details on your car (if they provide stickers) and save the relevant emergency and customer service phone numbers on your phone.