How to save money on your car insurance renewal: Tips that could save ‘hundreds of pounds’

Martin Lewis warns viewers about drastic car insurance changes

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Car insurance is an annual expense that keeps drivers legally on the road. Like any bill, though, it can be a drain on your bank account – particularly if it comes in tandem with birthdays, Christmas or other big outgoings.

But, according to Alex Kindred, an insurance expert from Confused.com, there are some simple ways you could be saving “hundreds of pounds” next time your car insurance renewal is due.

He spoke to Express.co.uk to share some of his top money-saving tips.

Understand the terms of your automatic renewal

In many cases, drivers will have their car insurance policy automatically renewed by their provider.

However, this does not necessarily mean that the cost will remain the same as the year previous.

Mr Kindred said: “Always remember that unless you tell your car insurance provider otherwise, your policy will automatically renew and the price could increase from the year before.

“This is why it’s always best to look for a new quote before renewing as it’s likely you will find cheaper options.”

Consider switching insurance providers

Although you may have been with your insurance provider for many years, Mr kindred points out that there are a number of reasons switching to a new insurer could be beneficial.

He explained: “Remember, you’re under no obligation to stay with your current insurer, and you’re free to shop around when it comes to renewal time.”

In doing so, drivers can often make sizeable savings.

Mr Kindred said: “By comparing car insurance quotes you could save yourself hundreds of pounds.”

Planning ahead is crucial if you want to secure the best deals, though.

The car insurance expert said: “When renewing your car insurance, we recommend looking around well ahead of your renewal date.

“On average we’ve found the cheapest time for customers to renew their insurance is 21 days before the policy expires.”

He added: “Generally, there’s no real benefit to being loyal to your insurer. It’s one of the myths surrounding car insurance.

“You can save yourself some money by switching to a different provider that offers the same level of cover and you can transfer your no-claims bonus, too.”

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Make sure you aren’t paying for unnecessary “add-ons”

Though there are a number of additional coverage options which can be crucial for drivers, depending on the reason they use their car and how often, motorists should make sure they are necessary.

Mr Kindred explained: “​​Insurers offer a multitude of add-ons to accompany your car insurance policy, but not all drivers necessarily need these.

“Some examples include hire car cover, personal accident and personal effects cover, windscreen cover, audio equipment and sat nav insurance, and cover for lost or stolen keys.”

Double-check the fine print of your policy to clarify exactly what coverage you are paying for.

The car insurance expert continued: “While all of these add-ons can be important for a driver, sometimes insurance policies will automatically include them along with their extra costs.

“Therefore, when signing up for a new insurance policy, always carefully read what add-ons are included and consider whether you would need them.”

Consider whether the model of your car is impacting the cost

Car insurance costs vary depending on a number of factors, including age, driving history, address and the make and model of your car.

For younger drivers, in particular, the type of car they are driving could see premiums soar.

Mr Kindred explained: “Age is one of the main factors which can determine the cost of a car insurance premium.

“Looking for a car that is cheap to insure will help bring down the costs of being a young driver.”

However, even more experienced drivers can see higher premiums as a result of certain vehicles.

According to the Confused.com expert, while cars in higher insurance groups tend to be more expensive to repair or replace, some other factors to consider, which will determine what group the vehicle will fall into, include:

Performance: The acceleration and top speed of your vehicle.

New car price: The more expensive a new car is, the more it costs to replace.

Parts pricing: The cost of replacing car parts if it’s involved in an accident. This is worked out using a standard list of 23 parts that are the most commonly damaged.

Security: How secure the car is against theft. The better the manufacturer-fitted security, the higher the chance of the car being placed into a lower insurance group.

Consider your mileage

How far you drive on a daily, weekly and annual basis can also contribute to how much you are paying overall.

Be sure to let your insurer know the main reason for use of your car, as well as how frequently it is used.

Mr Kindred said: “Premiums can be impacted by factors which could increase the likelihood of making an expensive claim.

“For example, drivers with a higher mileage are more likely to be on the road more often.”

This also applies to people who commute, or who are more likely to be driving at busier times.

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