We all know the jingles and we all know the characters created to keep us familiar with each brand of comparison website. But do you know how to properly compare car insurance quotes?
Are you one of the millions who let their car insurance roll from one year to the next?
That can be a big mistake!
You could be spending hundreds extra on more expensive car insurance than you need.
Even though the so-called ‘car insurance loyalty penalty’ was outlawed in 2022, quotes can still be more expensive for existing customers than new ones.
That makes comparing car insurance a necessity. Especially when every penny really does count.
So how do you properly compare car insurance?
The right way to compare car insurance
There’s slightly more work in comparing car insurance properly than just going to your favourite comparison site, but it’s well worth it.
First, some things you should know:
Compare like for like
The best way to get an accurate comparison is to compare like for like. That means the same car, the same, or more, number of years’ no claims, the same mandatory and voluntary excess and the same inclusions.
If you choose breakdown cover on one policy, choose it for all.
That’s the only way you’ll get a truly accurate comparison.
Time it right
There are a lot of theories about timing your car insurance quotes to get the best price.
Some theories say the earlier you do it, the lower the quote. Most will say the later you do it the higher the quote.
Martin Lewis from Money Saving Expert says the optimum time is between 20 to 26 days before your current cover expires.
Compare a few comparison sites
Did you know not all car insurance comparison websites are considered ‘whole market’ comparison sites?
A whole market comparison website will show quotes from all insurers and not just those they have arrangements with.
Unfortunately, not all websites make this clear so we recommend using 2-3 comparisons so you get the clearest idea.
Go direct
If you have the time and energy, sometimes going direct to an insurer can save you money. It won’t in every case, but there are some insurers that offer discounts for going direct.
There are also mainstream insurers like Direct Line that don’t feature on comparison websites.
Pay annually if possible
If you’re in a position to be able to pay your car insurance all at once, I recommend doing so.
It saves money on interest applied to monthly payments and can lower the quote you get. It also avoids a hard credit check as you’re not applying for credit like you would if you paid monthly.
While hard credit checks from insurers are normal, if you can avoid them, all the better.
Get your details ready
Get your details ready in advance and you’ll find it much faster to accurately compare insurance quotes.
You’ll need:
- Your vehicle registration number
- Driving and insurance claims history including no claims bonus
- Details on how you’ll use the car, social, domestic, pleasure, business, commuting
- Expected annual mileage
- Type of insurance you need, third-party, third-party fire and theft or fully comprehensive
- Your current renewal quote price
Once you have those things, you’ll be able to accurately compare car insurance quickly and easily.
Most comparison sites offer to save your details for future use. This can be useful for saving time next year.
Comparing insurance quotes
There are a number of car insurance comparison websites around and I’m sure you know most of them.
Consider:
- Compare the Market
- Uswitch
- Confused.com
- GoCompare
- MoneySuperMarket
- Quotezone
Also try any you know of personally or have tried before.
Open each in a browser tab and leave it open once you have received your quote.
If you have time, visit Direct Line and the other insurers that don’t feature on comparisons to check.
Once done, look at the cheapest quote from an insurer with a good customer feedback score.
Check the policy details very carefully. Look for the ‘assumptions’ listed in the quote to make sure they are accurate.
Also check the level of cover. Some insurers will offer less cover for comparison sites so they can compete better on price. If the level of cover is different, bear that in mind.
If you proceed with a quote, you’ll likely be taken to that insurer’s website. Don’t rush this part.
Check all the details, check the vehicle, your address, excesses, levels of cover and any extras. Make sure you know exactly what you’re signing up for.
Even though you have a cooling off period, it’s better for you to avoid the time and hassle of repeating this process.
Comparing car insurance
This might all sound like a lot of work, but it’s worth the investment in time and effort.
You could save anything up to a couple of hundred pounds by taking the time to compare and being selective about the sites you use and the insurers you sign up with.
When times are tight, the less you pay for essential cover, the better. Especially if the level of that cover is exactly the same!
