5 Steps to Finding the Cheapest Motor Insurance Quote Online

Buying a car insurance policy may be a legal requirement as a motorist but there's no law that set's the amount you should pay. You have more control over your insurance premium than you might think, particularly if you buy online.

Let's look at five of the easiest factors that you can control to get a better deal:

1. Don't Pay Premiums Monthly

Most car insurance companies charge a "handling fee" for customers who pay monthly rather than upfront. This fee is actually a form of interest and can be extremely high: as much as 24% in many cases. Even if you can't afford to pay the full amount up front, consider whether it might be worth putting it on an overdraft or credit card. You'll only pay interest until you've repaid it, and even if it takes all year you'll probably be paying a lower interest rate.

2. Be Excessive

There's some basic logic to agreeing to a higher excess fee in return for cheap car insurance premiums. Simply put, because the average motorist is more likely to go through a year with a claim than without a claim, they are more likely to get the benefits of lower premiums without the cost of an excess. Of course, if you do make a claim and pay the excess, you'll be worse off. The best way to deal with this is to look at the savings you'd make and the potential extra expense, then consider how likely you are to make a claim. In most cases, the higher excess will look the better value option.

3. Shop Smart, Shop Online

Although car insurance price comparison websites can certainly help to find good deals, not all of these sites quote the same offers and some may give weight to selected insurers. The more comparisons you do the better your end result is likely to be so be sure to use at least two sites to cover as much of the market as possible. Remember though that some leading car insurers don't allow their policies to be quoted on these comparison sites so be sure to get quotes from them too.

4. Be Honest

This is a classic example of short-term vs long-term thinking. For example, the use of "fronting" (declaring a "safer driver" such as a parent as the main driver of a car rather than the true "risky driver" like a teenager who really owns and uses the car most) may result in a lower premium. The problem is that if you do have to make a claim, which is why you pay premiums in the first place, there's a good chance it will be rejected, meaning you've paid for nothing. You'll also then pay the costs of dealing with any damage or injury, and could face fines or worse if prosecuted for fraud. You'll also likely find it harder to get insurance in the future, meaning you'll have less options for shopping around for a good deal.

5. Fit An Alarm

In most cases, an alarm costing in the £25 region will be enough to get you a two or three percent discount on your car insurance. That might seem paltry, but given the average premium is the painful side of £500, the alarm will usually pay for itself within a couple of years. And, even leaving finances aside, it also means your car is less likely to be broken into or stolen, which will save on hassle and stress.

Apply just a couple of the tips above and you could save 10%-20% on your next car insurance premium. Apply them all and the savings could be even more. The key is to not assume that your current insurer will be as competitive as they were last year or offer you anything like a good deal at renewal time.

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