The fact is that many drivers are still paying more than they have to for their car insurance and could save hundreds by following a few simple steps at renewal time. So, here are the top ten ways to save some cash on your car insurance in 2008. Try them when renewal time rolls around this year.
1. Shop around instead of automatically renewing.
One of the biggest mistakes that insurance buyers make is assuming that their insurer will give them the same great deal this year that they got last year. Insurers re-evaluate their positions every year, and last year's quote that was one of the lowest in the market could easily become this year's highest. Get multiple quotes from at least two price comparison sites that don't make assumptions about your insurance needs.
2. Keep mum about the quotes.
When approaching your short-list of insurers, don't tell them how much you've been quoted by other insurers. An insurer or provider isn't interested in giving you their best price - just beating the quotes you've got from others. If the provider knows you have a quote of £300, they aren't going to jump in with their best price of £250. They'll undercut it by as little as possible to keep as much of the profit they can.
3. Act the part.
If you're using a broker for getting quotes in person, consider how you dress and act. Insurance is a money game. If you look and act rich, the agent might quote you high, assuming you can afford it. If you look and act poor, the broker might assume that you have a bad payment record and quote you high to get rid of you.
4. Be likeable.
Courtesy is one of the most surprising money-saving tips on the list. A broker has contacts that you don't have, and a good one can scout around to find you the best deals. When you have rapport with a broker and they like you, he or she is more likely to go the extra mile on your behalf.
5. Practice reluctance.
Use a little shopping psychology when you're shopping for quotes. The more pleased you sound with your current insurance provider, the harder others will work to win your business. If you sound like you really don't want to leave, they're likely to cut straight to their lowest quotes to grab a loyal customer like you.
6. Be careful about the questions you answer.
Questions like "what have you budgeted for insurance?" are designed to find out what the market will bear. The insurer, broker or provider might as well be asking "how much can we charge you?"
7. Avoid the bargaining game before it starts.
When you hear "come back if you get a better quote", it really means "I can give you a lower quote". Get to the point and save yourself some time by telling the insurance provider up front that you don't have time to play games. You're going to choose the cheapest quote from your first and only round of comparisons.
8. Know what the quote covers.
A quote might be the cheapest, but does it offer the same features and cover the same things? Make sure that you're comparing oranges with oranges - or at least with grapefruits.
9. Ask for a freebie.
Most insurers will charge you £20 for legal cover when it costs them about £2. You can save that £20 by offering the provider a bone - ask them to throw in legal cover for free, and you promise you'll come back if you get a better quote elsewhere. Most insurers will jump at the second chance.
10. Give your insurer a chance.
Once you've got three or four quotes short-listed, ring up your current car insurance provider and ask if they can beat it. Many times, they'll be willing to shave another £10-20 off to keep your business.
