If you’re one of the thousands of British motorists who’ll be driving away in a brand spanking new set of wheels emblazoned with a ‘61’ registration plate this month, then you'll be in good company.
The Society of Motoring Manufacturers and Traders reckons that 330,000 new cars will be registered over the course of September. But thousands of people could be missing out on big savings if they stick with their insurers and transfer their existing policies to their new cars.
Plenty of insurers will try to pass on wallet-stinging hikes when you switch the car on your policy or when it’s time to renew your old one, and according to the AA Insurance Premium Index, drivers who took out a car insurance policy a year ago could be presented with premiums which are 30 per cent higher than they previously paid.
It makes for grim reading, but fear not - Gocompare.com customers save, on average, £354.35* by comparing their renewal against deals offered by a range of competing insurers. Some have saved considerably more by shopping around. For example, a 23 year old computer programmer driving a VW Golf recently saved a whopping £821 on his car insurance after he was sent a renewal quote of £1,640.
Gocompare.com’s resident car insurance sage Lee Griffin pondered: "It's a lovely feeling when you go and pick up a brand new car but drivers may have the shine taken off the experience this year if they don't shop around for their car insurance We estimate that nearly 40,000 drivers will simply stick with their long standing insurer, potentially costing them a collective £14m in extra premiums over the next year. He continued: "Buying a brand new car, or just one that's new to you, is an ideal time to have a good look at your car insurance. Unfortunately insurers are notoriously bad at rewarding loyal customers so if you're switching cars this September it may be time to consider switching your insurer too."
Five easy ways to keep your car insurance costs down
- Shop around! It's the most important and easiest way to make a saving on your car insurance costs.
- Get the cover you need. If you don't need extras like a guaranteed courtesy car don't pay more for them.
- Consider adding an additional driver to the policy if they have a good no claims history. This could be especially useful for young drivers although don't be tempted to name them as the main driver if they're not. That's fraud and could invalidate your insurance.
- Consider paying a slightly higher excess to reduce your premiums. If you do make a claim it will mean you have to pay out a bigger proportion of the claim yourself, but if you have a claim-free year you'll have saved.
- If you use your car infrequently opt for a lower mileage limit than the standard and it may bring your premium down. But don't say you'll drive 6,000 miles a year and then drive 20,000. If you have to make a claim and your insurers find you're doing considerably more miles than you declared they'd be within their rights to refuse to pay out.
Now you’re here, give Gocompare.com’s tip-top car insurance comparison service a whirl - the average customer saves over £350 on the renewal price of their car insurance. Get stuck in!
*£354.35 - Based on online independent research by Consumer Intelligence during 01 June 2011 to 30 June 2011, 35.82 % of consumers could achieve this saving with Gocompare.com car insurance.