Running A Car - Tips for buying car insurance online

Motor insurance premiums have soared by 30% over the past 12 months, which means the importance of getting the best deal – without compromising on cover – has never been so paramount.

Thankfully, the internet has made this task a whole lot easier. Drivers can tap their details into a price comparison website such as MoneySupermarket, hit search and be returned with a list of the cheapest providers in minutes flat – and all without spending a penny.

Yet, according to recent research carried out by MoneySupermarket, around 7.3 million drivers in the UK still opt to stick with their existing provider when their policy comes up for renewal, despite MoneySupermarket research which shows that drivers who switch to the cheapest deal save on average £375 compared with those who ‘auto-renew’ with their current provider.

So before you sit down at your PC, swot up on the best ways to buy car insurance effectively online.

Arm yourself with the relevant information: Make sure you have all information to hand before you start on your search for the best deal. For example, dates and details of motoring convictions and penalty points, or claims you have made within the last five years.

Know your annual mileage: The number of miles you drive each year will affect your premium. Logically, the more you drive, the more you are exposed to the risk of an accident and the higher your premium will be. Work out your estimated mileage in advance to ensure you receive an accurate premium. There is special tool on MoneySupermarket to assist you with this.

Be clear about who the main driver is: When you are comparing deals online, running quotes in different names for the same vehicle to see which returns the cheapest quotes can ring alarm bells with motor insurers, as they can suspect you are supplying inaccurate information. Be clear about who uses the car most and conduct your search accordingly.

The cheapest deal may not be the best: If you find a policy that seems especially cheap, look again at the ‘small print’ as what is included as standard can vary significantly. Some policies will throw in a courtesy car, legal costs and even breakdown cover, while others offer these features as optional extras which – of course – add to the price.

Establish an excess according to your affordability: Another factor that will affect your quoted premium is your excess, which is your own agreed contribution to any claim you make. If you opt to pay a voluntary excess in a bid to keep down premiums, you’ll still have to pay the standard excess too, which can get expensive. Establish a realistic sum you know you’ll be able to put your hands on at any time of year and stick to it.

Never lie: Price comparison website technology makes it easy to see how your premiums can rise and fall when you input different information. For example, keeping your car in a garage overnight will be cheaper than parking it on the street. Nevertheless, don’t be tempted to lie. If information is found to be incorrect – especially if it’s deliberate – you will risk invalidating the policy when it comes to claiming. And even the cheapest policy is a false economy if it doesn’t pay out.

This article has been researched and written by whatcar.com's car insurance partner, MoneySupermarket