Car Insurance Mistakes to Watch Out For

Car insurance mistakes to watch out for

With the economic crisis continuing to bite into our finances, the pressure is on to find new ways to save money - and reducing car insurance premiums can seem like a good place to start.

There are a host of ways to save money on car insurance, but unfortunately, in our rush to retain our cash, many of us are making simple mistakes that could actually increase our premiums - and in a worst case scenario, even invalidate our policies.

Here we look at the most common slip-ups and how to avoid them.

Check your car insurance details

Insurers’ premiums are based on a number of risk factors including details about you and your driving record, the car you drive and more. Because these details are used to calculate premiums and no two car insurance quotes are the same, it’s vital that the information is kept up to date and accurate - if it’s not then your insurer could throw out a claim. Even simple errors such as getting the date you passed your test wrong, could lead to issues.

So check and double check all of your details - and remember to keep your insurer informed when your circumstances change. Moving house or switching to a new job for example, could all have an impact on your premiums.

Keep your car insurance provider updated on your modifications

Whether you’re adding alloy wheels, a turbocharged engine or you’re giving your car a new paint job, you need to keep your insurer in the loop.

Modifications impact car insurance premiums because they can make a car more expensive to repair. Indeed most insurers charge higher premiums to modified cars as they deem them more likely to be involved in an accident - particularly if the engine has been upgraded. So keep your insurer informed or it may refuse a payout.

Keep your eyes on the road to keep car insurance premiums down

The most obvious slip-up drivers make is to get involved in an unnecessary accident. Keep your eyes peeled at all times, watch other road users and keep a safe distance between you and the car in front.

Remember that an accident will almost certainly force your car insurance premiums to rise. You’ll have to pay an excess and you’ll lose your no-claims bonus unless you have taken out no-claims discount protection.

Do not break the law - it will cause your car insurance to rise

Driving offenses can seriously impact your car insurance premiums - two or more speeding offenses for example, can cause your costs to rise by as much as 74 per cent with some insurers.

You are required by law to inform an insurer of a driving offense - failure to do so will invalidate your policy. So on top of penalty points, and a potential conviction, bear in mind that your car insurance expenses could sky rocket and think twice before you speed, use a mobile phone or drink and drive.

But don’t mention convictions that no longer count to car insurers

The Rehabilitation of Offenders Act 1974 states that some criminal convictions are ‘spent’ after a certain length of time and do not need to be mentioned to insurers. So find out exactly how long you’re required to inform an insurer of a past conviction - once the time has passed, don’t mention your convictions or your premiums could be rising unnecessarily.

Vehicle neglect means high car insurance premiums

It may seem like a hassle to check your oil, tyres, coolant levels and lights on a regular basis… but failing to keep your car in top condition could backfire with your insurance company.

If you injure someone in an accident caused by vehicle negligence, you could be charged with driving a vehicle in a dangerous condition and expect a serious hike in your premiums. So if in doubt, take your car to a garage for a service.

How to cut the cost of car insurance cover

By avoiding these slip-ups you can keep your car insurance premiums at a manageable level - and there are also steps to take to cut your costs further.

For example, most car insurance providers will offer discounts if you fit security devices, take an advanced driving course and park in a garage overnight. There are further savings to be made by agreeing to a higher voluntary excess or by paying premiums annually instead of monthly. Make sure you compare car insurance online at least once a year too, to ensure you’re getting a competitive deal.