Astonishing figures recently released show that some people are willing to drive without car insurance or drink and drive after a night out in order to cut costs. More than 1.3 million motorists* are happy to take on the risks involved in drink driving simply to save on a taxi fare. If the recession is hitting some people that hard, perhaps it's time for some sensible ways to find cheap insurance.
Insurance is a game of risk. There are two reasons why an insurer may offer you cheap insurance: a low chance of you needing to make a claim and a low claim value. The insurer is trying to get the balance right (based on historical data and assumptions) between premium payments coming in and the claim payments going out.
With that in mind in your pursuit of cheap insurance, consider what you can do to present yourself as a lower risk. For your car insurance, this could mean parking your car in the garage or installing a tracker. For products such as life and health insurance, take steps to quit smoking and generally prove to the insurers that you live a healthy lifestyle.
Sometimes you can uncover cheap insurance by simply removing the added extras which you're never going to need. Likewise, if you're offered cheap insurance, the first thing you should do is check to make sure the cover you actually need is included. Common examples include courtesy car cover when you have a second car in the household and buying health or life insurance which may already be provided to some extent by your employer.
If you have the option, you should find a way to pay for your insurance in one lump sum. If you chose to pay monthly premiums, the insurer could effectively be "loaning" you the full premium and are likely to apply interest on top - undoing your hard work in finding cheap insurance.
When your current policy is up for renewal, you'll receive a notice from your insurer. Included in this will be a quote to renew with them. This is rarely the cheapest option. The insurers rely on laziness to retain your business and recoup some of their costs. To make sure your insurance is as cheap as possible, have a hunt around for the best deals.
The easiest way to compare the insurance market and find cheap insurance is to use an insurance comparison website. However, you can get very cheap insurance if you take it one step further and haggle a little on the phone. The insurance companies who provided your best online quotes will be eager to win your business - take advantage and ask for a discount.
* Opinium Research carried out an online poll of 2,359 British adults on behalf of Direct Line from Thursday 5th February and Monday 9th February 2009
1. Consider Your Risks
Insurance is a game of risk. There are two reasons why an insurer may offer you cheap insurance: a low chance of you needing to make a claim and a low claim value. The insurer is trying to get the balance right (based on historical data and assumptions) between premium payments coming in and the claim payments going out.
With that in mind in your pursuit of cheap insurance, consider what you can do to present yourself as a lower risk. For your car insurance, this could mean parking your car in the garage or installing a tracker. For products such as life and health insurance, take steps to quit smoking and generally prove to the insurers that you live a healthy lifestyle.
2. Only Pay For What You Need
Sometimes you can uncover cheap insurance by simply removing the added extras which you're never going to need. Likewise, if you're offered cheap insurance, the first thing you should do is check to make sure the cover you actually need is included. Common examples include courtesy car cover when you have a second car in the household and buying health or life insurance which may already be provided to some extent by your employer.
3. Annual or Monthly Payments
If you have the option, you should find a way to pay for your insurance in one lump sum. If you chose to pay monthly premiums, the insurer could effectively be "loaning" you the full premium and are likely to apply interest on top - undoing your hard work in finding cheap insurance.
4. Don't Just Accept Renewal Quotes
When your current policy is up for renewal, you'll receive a notice from your insurer. Included in this will be a quote to renew with them. This is rarely the cheapest option. The insurers rely on laziness to retain your business and recoup some of their costs. To make sure your insurance is as cheap as possible, have a hunt around for the best deals.
5. Compare Online and Haggle On The Phone
The easiest way to compare the insurance market and find cheap insurance is to use an insurance comparison website. However, you can get very cheap insurance if you take it one step further and haggle a little on the phone. The insurance companies who provided your best online quotes will be eager to win your business - take advantage and ask for a discount.
* Opinium Research carried out an online poll of 2,359 British adults on behalf of Direct Line from Thursday 5th February and Monday 9th February 2009
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