COMMENT
Save £50 In Sixty Minutes!

By Alison Hunt (TMFAlly)
July 27, 2005

It's almost August, traditionally a time for motor insurance renewal forms to start dropping through thousands of letterboxes across the country. What are you planning to do with yours?

If your answer is "put it in the drawer and worry about it later", you may risk being caught out. Although in the past motor insurance companies have included so called 'days of grace cover', essentially a 14-day extension period to motor policies that allowed consumers more time to shop around when renewing, this cover no longer exists. The British Insurance Brokers' Association (BIBA) has warned consumers that in order to help in the fight against uninsured driving, the majority of motor insurers have dropped this grace period meaning that any motorists now driving without full insurance are breaking the law.

We don't really need to panic new industry regulations dictate that policyholders must receive an insurance renewal quotation at least 21 days before their policy expires. This gives us plenty of time to shop around for a competitive deal. However, apathy, as always is the enemy of money saving, meaning that thousands of us will end up simply leaving it too late and have to accept that renewal premium.

However, if you were to realise how much money could be saved taking the time to shop around a little, you may change your mind. A study carried out by insurance broker Swinton revealed that by obtaining seven quotes we could save an average of £52, and to get this many quotes would take less than an hour, just 55 mins and 11 seconds. And many people can save far more than that! Is saving £50+ worth an hour of your time?

It's worth remembering too that although you may have received an awesome deal last year, your insurer is unlikely to offer such a bargain this year; more often than not it will increase your premium to recoup some of that discount. What's more, as your details (such as address, no claims bonus) can change from year to year; you may suddenly find you've become more desirable to other insurers. It will most certainly be worth phoning or applying online for a few quotations!

However, always take into account the cover as well as the price. An ultra-cheap quotation that provides inferior cover may not be worth it in the long run. And paying to protect your no-claims bonus can be money well spent (though read the small print, not all companies have the same rules). It is equally important to tell the truth when applying. Saying that your car is locked in a garage each night when in reality your garage is full of junk, or lying about the details of your car may result in a slightly cheaper premium, but could mean that your insurance is invalid, should you need to claim. You'll essentially be throwing your money away.

If you're looking for some tips to cut the price of your premium, remember these facts:

• Adding your partner can actually reduce the cost of your insurance.
• If you don't use your car to commute, this can save money.
• If your mileage is very low, make sure you mention it.
• Check if there's a charge to pay monthly. Some insurers charge up to 30% APR for this privilege; a major rip-off. Try and pay upfront if you can, if not consider taking out a 0% card and spreading the cost over six to twelve months.
• Clear out your garage and put your car in it. This really can reduce your premium.
• If you have a sports car, consider joining the specialist car club associated with it and find out how to take out cover through a specialist insurer. A friend of mine did this and not only did he save hundreds of pounds on his premium, his new insurer also provides him with breakdown cover and free track day insurance, too.
• Don't settle for the first quote you get shop around!

So go on, grab that insurance renewal form out of the drawer and aim to beat that deal!

You can find out more or obtain a competitive quote in our Insurance Centre, or apply for a 0% card in our Credit Card Centre.