Sound Insurance Advice for New Car Buyers

With the new ‘55’ registration plate released a few weeks ago, hundreds of motorists have purchased new cars, with many more expected to follow suit. How many, though, will give insurance much consideration?

However, Norwich and Peterborough Insurance Brokers (NPIB) has warned consumers not to overlook getting the best insurance deal for their new car by getting caught up in the excitement of their new purchase.

To help with getting the best deal, the insurer offers consumers a few tips on obtaining the most competitive quote, such as being as specific as possible about estimated annual mileage.

As an example of the above tip, NPIB revealed that a driver over 25, quoted £518 for unlimited miles insurance cover could reduce that quote to £399 if they calculate they will drive only 8,000 miles annually. Thus by stating the number of miles expected to be driven, the driver can save £119. A considerable saving, most would agree.

Other insurance busting tips include naming drivers on the policy, as taking out a policy which allows any driver to drive your car can lead to an expensive policy. Naming the drivers who will drive the vehicle can, for example, lead to the premium on a £399 unnamed policy being reduced to £220 if the policy holder and spouse are named drivers.

One of the biggest savings to be made is among young drivers, as they tend to be on the receiving end of sky-high premiums due to their higher risk category. However, taking a Pass Plus exam, to improve their driving skills, can lead to a massive saving of around £400 for insurance.

“ It’s not always about reducing the cost , it’s often beneficial to pay that little bit extra in order to save yourself money in the event of a claim,” says Steve Kendall, personal lines director at NPIB.

“For example, it’s worth checking the difference in price between comprehensive cover and third party fire and theft. The difference can be small, but you’re covered for more. Our tips are designed to help get the lowest price without loss of cover.”

In essence, it’s best to avoid the ‘false economy traps’, such as not paying the extra to protect your no claims bonus. While not paying the extra premium may save you money in the short term, it will cost you more if you have an accident which is your fault as you will thereafter pay a higher premium in the future due to losing your no-claims discount.