Money Saving Expert (MSE), led by renowned finance guru Martin Lewis, has issued an urgent warning to all drivers regarding car insurance. According to MSE, if action is not taken immediately, drivers could lose out on thousands of pounds.
Lock in a Cheap Quote and Save a Fortune
The experts at MSE have shared valuable tips on how to secure a cheap car insurance quote that could potentially save drivers a fortune. They have highlighted the alarming fact that car insurance costs are at their highest level in over a decade, with no signs of improvement in the near future.
Check Immediately and Save, Even if Not Up for Renewal
MSE advises all drivers to check whether they can lock in a cheap quote, even if their insurance is not up for renewal. Despite new rules preventing insurers from charging renewing customers more than new customers, MSE cautions against assuming that the renewal quote is the best deal. Different insurers have different prices, so it's crucial to compare and see how much can be saved by switching.
Use MSE’s Compare+ Car Insurance Tool for Huge Savings
MSE recommends utilizing their Compare+ Car Insurance tool to find a cheaper deal and potentially save hundreds of pounds in the process. This tool allows drivers to fill out one simple questionnaire, and MSE will do the rest by providing cost-cutting tips and presenting insurance quotes as benchmarks. Personalized tips to further cut costs are also available, along with comparisons from other sites like Direct Line.
Different Types of Car Insurance Explained
In a helpful guide, MSE covers the main types of car insurance and advises on what might work best for those on a budget. The first type is third party cover, which is the minimal level of cover needed to drive legally and only covers damage to someone else or their property. The second type is third party, fire, and theft, which includes the same coverage as general third party insurance but adds protection against theft and fire. The last type is comprehensive insurance, which offers the widest range of coverage, including third-party, fire, and theft, as well as cover for repairs and damage caused in an accident, even if the driver is at fault.
Money-Saving Tricks for Car Insurance Renewal
MSE also provides some clever tricks to save on car insurance renewal. They suggest obtaining quotes 20 to 26 days before the policy start date, as doing nothing after receiving a renewal notice often leads to automatic renewal at the new price. Adding a responsible driver to the policy may also help lower the cost, especially if they have a lower risk profile. MSE emphasizes that for the cheapest policies, it is usually necessary to pay annually, as monthly payment plans come with high-interest rates that can add significant costs to the overall premium. Paying in full or using a credit card with a lower interest rate is advised in such cases.
Endnote
This valuable advice from MSE comes after their revelation of a little-known 20p hack that could save drivers hundreds of pounds. The experts also issued an urgent warning last month to anyone with an upcoming MOT.
