How to ensure you get a better deal at car insurance renewal time

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Every year a car insurance renewal letter lands on your doorstep reminding you of your renewal date and new car insurance premium - what do you do?

Accept the new premium and have your car insurance policy renewed automatically for another year? Or do you look around to see whether you can find a more competitive rate elsewhere?

If you are someone who lets your car insurance renewal pass each year without looking for a better deal you could be missing out on saving hundreds of pounds.

Reasons to look around

Unfortunately car insurers do not tend to reward you for being loyal a customer. Most insurers concentrate on discounts to entice new customers and then increase this in the following year to make a profit.

Therefore you are likely to find that your renewal quote is higher you're your original premium.

Over the course of the year your driver profile may have changed and therefore a different insurer may be more competitive for you compared to last year.

You may have changed address or job, or have made a claim or obtained a conviction. If you have not made a claim you should benefit from an additional years no claims bonus and expect to pay less for your car insurance for this next year.

Many insurers will automatically renew your policy unless you have informed them you wish to cancel it.

So if by shopping around, you do find a better deal for your car insurance and do not want to renew with your existing insurer be sure to let them know. This will ensure you will not make the mistake of paying twice for you car insurance.

Simple steps to save on car insurance:

• As your car insurance renewal day approaches, be sure to do your home work to find the best possible deal on your car insurance.

• Search the market for a competitive premium, a relevant (not just cheap) policy that covers you for the things that matter to you and be sure to compare policies on a like for like basis.

This latter part is often overlooked. Consider the excesses and exclusions carefully.

A cheaper policy may be hiding a high excess and limited cover. Link to car insurance

• Respect the rules of the road. Drive carefully, avoid claims and convictions and you will build up your no-claims bonus. In return, insurers will reward you with lower premiums.

• If you have access to a garage, make the effort to use it rather than parking your car on the roadside.

• Alarms and immobilisers will act as a deterrent to thieves. Always remove detachable stereos and valuable items from the vehicle.

• Pay your premium in full each year if you can afford to. This way you will avoid the high APRs that many insurers charge for monthly instalments.

• Inform your insurer if your annual mileage is low. If you use your car to commute to work, expect more expensive premiums.

• Younger drivers should avoid buying expensive high performance cars. Instead they should invest in a smaller cheaper car to start with. This way they can build up their no-claims discount and benefit from cheaper premiums later on.

• Never twist the truth when getting a quote for your car insurance. Insurers can refuse to settle a claim if the information you have initially provided them with is found to be untrue.

• You must remember to keep your insurer up to date of any changes in your driver profile. You are obliged to inform your insurer of any convictions, changes of address or modifications to you vehicle, all of which can affect the premium you pay.