Are you lazy about losing money?

As the launch of the new ‘08’ registration plates looms and hundreds of thousands of motorists splash out on new cars, Insurancewide.com warns drivers not to be lazy about the insurance.

“Taking the easy option of simply renewing your existing insurance policy could mean you’re throwing your money away. Think new car, new policy, or at least do your research online to check whether you could get a better deal the one than your existing policy offers”, says James Harrison, chief executive.

“A driver’s profile will constantly change. Your age, occupation, address and type of car all affect your premium and the type of insurer capable of offering the most competitive product and price.

“The potentially huge cost of car insurance is often overlooked in favour of focusing on the model, the engine size and colour of your new car. But think more carefully before you buy. Ask about the insurance classification of the car, for example. Cars are currently classified in 20 different bands, with the most expensive or rare cars in the top brackets. The dealer may offer you a period of free insurance as an incentive to purchase.

“Be sure to check the policy details and what your premium would be after the free period. Although it is hard to predict running and repair cost, check the manufacturer’s figure for mile to the gallon (allowing for an element of inaccuracy). You should also enquire as to how often the car will need servicing and what the re-sale value is likely to be.

“Finally, don’t be misled by insurers’ advertising campaigns that don’t tell the whole story or that don’t really apply to you. Decide what cover you need for your own circumstances, then look for it.”

10 steps to saving on your car insurance

1. Start your search and preferably buy the insurance online: Many companies offer discounts when you buy online, although the online purchase option is not available to every driver – it will depend on your profile and requirements. Visit the Insurancewide.com MotorWizard and shop around to find insurers who are most suitable for your driver profile.

2. Don’t modify your car: Modifying your car will affect your premium. Manufacturers work closely with insurers so that a particular model of car can be insured to a standard. If you modify the car then the factors on which your premium has been based will have changed and the number of insurers that will insure you is cut dramatically. If you do modify, make sure you tell your current insurer.

3. Drive Carefully: Careful drivers who build up a history of no claims will be rewarded with lower premiums so it pays not to treat the roads as a race track.

4. Security: Fit an alarm or an immobiliser or use a steering lock. If you have a garage use it to store your car, don’t just leave it on the road. If you have a detachable stereo make sure that you remove it from the car.

5. Voluntary Excess: You can reduce your premium by agreeing to accept a voluntary excess. This is the amount you agree to pay in the event of an accident.

6. Low mileage discounts: If your annual mileage is low, inform your insurer as this can cut the cost of your insurance by 15%. Using your car to commute to work will make your premium more expensive.

7. Don’t lie: When you sign a contract with an insurer it is entered in ‘utmost good faith’. If you lie this can allow an insurer to refuse payment in the event of a claim. During the policy period you must keep the insurer up to date with any information which may affect your premium e.g. change of address or speeding points.

8. Don’t automatically buy comprehensive insurance: If your car has a low value you can cut a third off your premium by insuring your car for Third Party Fire & Theft.

9. Pay in full each year: Many insurers charge a high APR if you pay monthly.

10. Don’t Buy a High Performance Car especially if you are under 30: If you drive a sports car then expect a high premium, especially if you are male and under 30. Insurers will take numerous factors into account including your age and the group rating system of the vehicle to be insured. Most family cars fall into groups 6 to 12, unless they have high-powered engines