We all want to save money on car insurance and at Confused.com we’re committed to reducing your premiums. But there are some risks that aren’t worth taking; and that includes withholding information from your car insurer, or giving faulty information to obtain a cheaper car insurance quote.
What your car insurer needs to know about
Insurers need accurate answers to their questions in order to assess the risk level of your policy and price it accordingly. If you don’t supply exact information, you won’t be getting a fair quote.
Car insurance providers require that you give accurate information when taking out motor cover and that you keep them notified about any incidents or changes that occur during the life of the policy; this obligation is known as a duty of disclosure. Therefore, you need to let your car insurer know about any of the following:
- Minor knocks, as well as more serious accidents. Even if there’s no real damage done to your car, or if you’re not claiming for the accident on your car insurance, you still need to inform your insurer.
- Any other incidents, such as fire, theft or water damage; no matter how insignificant you think they are, you should let your car insurer know.
- Penalty points gained on your licence, or any motor-related conviction. You need to tell your car insurer straight away if you get caught speeding or committing any other crime; don’t wait until renewal.
- Changes to your address, or how you store the car (for example if you convert your garage and start parking on the street). This could result in cheaper car insurance next time round.
- Alterations to the details of other people included on your car insurance.
- Any increase to your yearly mileage, or a change in the type of mileage you do (for example if you start to use your car for business purposes).
- Changes of career or job title, as this information is used to calculate premiums; your car insurer may ask you to pay extra if you give up the office job for a career in Formula 1.
Many motorists might feel tempted keep schtum to prevent their car insurance premiums rising. But although Confused.com is dedicated to saving you money on your car insurance, fraud is one tactic that we’d advise you to steer clear of.
Repercussions of not updating your car insurer
If you don’t let your car insurance provider know that your circumstances have changed, your policy could be invalidated. This means that any claims that you make on your car insurance may be refused or payments reduced.
Even if you think that telling your insurer that you’ve moved from a sleepy village to a rowdy city centre will raise your car insurance premiums, it’s worth paying a little bit extra now to make sure that you are still fully insured. Many claims can run into thousands of pounds, so it’s really not worth the risk.
And the penalties for keeping your car insurance provider in the dark don’t end there. You could also be given a criminal record for fraud; something that may make your future car insurance premiums soar – or make you uninsurable.
How to save money on car insurance
If withholding information from your car insurer isn’t a valid way to keep your premiums down, how else can you save money? The following tips could reduce the amount you pay for car insurance without getting you in trouble with the old bill.
- Make sure you shop around when your policy is up for renewal. Confused.com allows you to compare over 60 car insurance providers by filling out one simple form: and our customers save an average of £208*.
- Be aware that you could be paying a lot extra for the convenience of monthly payments. If you can’t afford to pay your car insurance premium in one go, putting it on a low rate credit card may work out cheaper.
- Having a higher voluntary excess will usually reduce the amount you pay for your car insurance. Make sure that you understand the implications of this, however, as it will mean that you will have to pay out a larger amount in the event of a claim; for more information, read The Excess Factor, our guide to voluntary excesses.
- Don’t pimp your ride; alloys and large spoilers are more likely to attract a higher car insurance premium than the admiration of other drivers.
- Adding extra security to your car, such as alarm systems or immobilisers, could save you money on your car insurance.
- Provide accurate mileage, as rounding up your displayed mileage up to the nearest thousand could get you a higher car insurance quote.
There are many legitimate ways to reduce your car insurance premiums other than by tweaking your application form. The important thing is to always give accurate information and keep your car insurer informed of any changes to your circumstances; that way you can then drive safe in the knowledge that you are fully insured.
For more information, read What Happens If I Lie On My Car Insurance Policy?.
* Customers who provided a best alternative price on car insurance between 1st January and 1st June 2008 saved on average £208.18.
