Terms and conditions
Every car insurance policy comes with a number of policy conditions. Whilst it might be tempting to focus on the headline price, you do need to check all the attached terms and conditions. If you don’t, you risk breaching a condition that might invalidate your cover.
It might also mean you don’t get the best value for money. The terms and conditions can be used to your advantage and there’s a number of ways you can save money on your policy.
Managing the excess
When you take out cover you will see there is an amount quoted called the ‘excess.’ If the worst happens and you have a bump, this is the money you will have to pay before the insurance policy kicks in.
There are various types of excess. Compulsory excess is set by the insurer but voluntary excess is the amount you choose to pay on top of compulsory. If you set the voluntary at zero, you would only have to pay the compulsory excess (if there is one) in the event of a claim but your premium may be higher. There are also other types of excess such as a young driver excess that is charged to drivers under 25 so make sure you read all of the T&Cs so you know what you’re paying for.
The temptation then, is to make this amount as small as possible. But, increasing the excess amount may be a good way of helping to reduce the insurance cost and could make a difference. Just make sure this is an amount you can afford and balance this risk against the overall cost of your premium.