Martin Lewis issues urgent warning to anyone with a car – and it could save you hundreds of pounds
MARTIN Lewis’ MoneySavingExpert.com has issued urgent advice to anyone with a car that could save them hundreds of pounds.
The consumer website said car insurance policies are set to rise by 15% this year so you should check now if you can get a cheaper deal.
One MSE reader, known only as Ann, wrote in to share how she had saved nearly £400 by using the website’s Car Insurance Compare+ tool.
She said: “I used the ‘magic time before my renewal’ tip and went through the MSE tool.
“My insurance company’s best offer had been £652. I got exactly the same cover for £262.”
That’s almost a £400 saving.
Anyone using the tool has to enter a number of details, including how many miles the vehicle has done and where you leave it at night.
Once you’ve done this it will draw up the best deals on the market for you to choose from.
What is car insurance?
Car insurance offers you financial protection if you are in an accident, like a crash.
Some claims cover you if the accident left you injured too.
It is the law to have a basic level of car insurance, even if you don’t drive it.
That’s unless you register the vehicle as off the road.
If you are stopped and found to not have car insurance, you can be fined or receive points on your licence.
In some cases the vehicle might be taken off you.
Top tip for renewing your car insurance
The MoneySavingExpert.com newsletter shared key tips you can use when it comes to renewing your car insurance.
The first was checking if you can save on your policy even before renewal. In most cases, policies last for a year.
If you haven’t made a claim in this 12-month period you should be able to just cancel your policy and get a pro-rata refund if you paid up front.
But bear in mind you will usually have to pay an admin fee to cancel your policy early.
If you go ahead with it, once you’ve got the new policy you can cancel the old one.
One negative of cancelling early is that you won’t receive your no-claims bonus at the end of the year.
But, it might be worth it if your new policy saves you hundreds of pounds a year.
The second urged car drivers to never auto-renew.
When your car insurance policy runs out most insurers will roll it over automatically.
But, you could save by comparing deals across the market and switching.
Or, you could try haggling with your current provider for a better price.
On top of this, you can check if your policy suits your needs and complain if you think you are being unfairly treated.
You can check the policy to make sure the insurer is Financial Conduct Authority-regulated.
If you make a claim and it’s rejected without good reason you can go to the Financial Ombudsman.
The Financial Ombudsman is a free service where you can settle a dispute between yourself and a business providing financial services.
In the case of car insurance, this would be a dispute between the car driver and the car insurance company.
How else can I save on my car insurance?
There’s a host of other ways you can make savings on your car insurance.
Many drivers get black boxes or telematics installed in their cars – these essentially track how you drive so you can prove to insurers you are a safe driver.
Black box insurance policies can be useful alternative for younger drivers who are usually seen as more risky and charged higher premiums.
You can try adding a more experienced driver to your insurance policy too.
Again, this is useful for a younger driver wanting to lower their premium as the overall risk associated with a car will be reduced.
On top of this, you could change your car completely.
If you’ve got a car that has parts that are expensive to replace this will see your car insurance go up.
You might have to pay more if you’ve got a high-powered sports car too as these are more likely to be involved in an accident.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk