Running a car these days is expensive. From road tax, to car maintenance, fuel and MOT costs, everything adds up. So it’s important to keep on top of your motoring finances where possible. Reviewing your car insurance policy is just one way of achieving this, so let’s look at some of the factors that contribute to your car insurance premium.

Can you afford not to take 10 minutes?

First of all it’s vital that you spend ten minutes reviewing your policy so that you understand what exactly you are covered for. You don’t want to have an accident only to discover that your policy isn’t quite as watertight as you believed. With this in mind, look over the terms and conditions and establish what exactly is covered.

Double check the details

Check that all of the details are correct on the paperwork, and if there any discrepancies get in contact with your insurer either by phone or email and get the details changed as soon as possible. It’s important to make sure that all of the details you provide are correct because you don’t want to risk invalidating a claim or slowing one down because of a silly mistake. It’s simple, make sure the details are correct and if any individual circumstances change then tell your insurer.

Miles make a difference

Another factor you should keep a close eye on is the amount of miles you drive each year. If you notice the figure you gave when you first set up the insurance is higher than the actual amount you covered, then you should make the insurance company aware for the following year. Lower mileage per annum can result in a lower insurance premium because you are deemed to be less of a risk. As a result, if you know that you don’t use your car as much as you used to then get in touch with your insurer.

Do you really need all that power?

Buying a more economical car, with a smaller engine, and using your existing one for a part exchange deal can pay dividends in terms of your motoring insurance. A car with a lower sized engine and one that is more economical will cost less to insure and fuel then a more powerful vehicle. If you are thinking about getting a new car then think carefully about the model and engine size that you go for. Even if you only find yourself saving a minimal amount on your insurance, when added to other savings like fuel and road fund licence, it can mount up to a useful total.

Your economy drive starts on the Internet

If you find that you are not happy with your existing premium then you can begin your search for an alternative insurer and source a few quotes on the web. The Internet is a fantastic resource that can quickly and easily be used to find a number of suitable insurance companies. Older car owners often benefit from reduced rates, which can be secured from a range of specialist insurance providers. Recommendations from your friends or colleagues are also helpful when weighing up your options, but the Internet is an equally effective tool for comparing quotes and insurers.

Spend 10 minutes on your motoring insurance now, save money for years to come

Reviewing your policy won’t take long and you could make substantial savings for you and all of the named drivers on the car insurance policy, too. Many people simply update their insurance year after year without factoring in changes in circumstances or bothering to see if there is a better deal available.

And it’s not just about the money. Should you notice that you’re not getting the level of cover you require, it may be advisable to contact your insurer or look elsewhere for a more appropriate policy.

*Note: Insure4Retirement has issued this guide for information purposes only regarding what could be available on a home insurance product. No advice is being offered as to the suitability of any policy to a person’s own personal circumstances.