If you’re about to buy your first car or replace your old one with a new, used model, don’t forget about the car cover. If you’re caught without suitable insurance, it could leave you facing a hefty fine and points on your licence. In the worst case, you could even be disqualified from driving. So, with advice about how to get cheap car insurance and what your options are, here’s a comparison site, mustard.co.uk.

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Transfer An Existing Policy To Your New Car

If you’ve already got a car insurance policy, you should be able to transfer it to your new car, simply by calling your insurer and letting them know.

Bear in mind that your insurer may charge an administration fee to do this. If they do, the cost should be clearly set out in your policy documents. You’ll also need to consider that the cost of your policy could increase, especially if the car you’re buying is more powerful than the car it’s replacing.

Arrange A New Car Insurance Policy

If you don’t want to transfer your existing policy, you can cancel it and arrange a new one with a different provider. For example, if your existing insurer significantly increases your premium, you might be financially better off looking elsewhere for a policy.

However, it’s important to remember that if you switch providers before your existing policy expires, you may:

• Have to pay a cancellation fee to terminate the policy. Like admin charges, this will be set out in the terms and conditions of your contract.
• Lose your no claims bonus for that year as these are typically earned over the 12-month period.

Will I Get My Money Back If I Cancel A Policy Early?

As a general rule, yes, if you cancel your policy, you should get a refund for the remaining months. But remember that if there’s a cancellation fee, this will be deducted from your refund.

What’s The Best Option For Insuring A New, Used Car?

This is likely to come down to several factors as there’s no definitive answer. For instance, if you need to pay a cancellation fee, this might outweigh any savings you make from buying a new policy. If that’s the case, it may be more economical to stick with your current insurer, particularly if you only have a few more months left on the policy.

Alternatively, if your insurer significantly increases your premium and charges an expensive admin fee, you might be better off arranging a new policy (even if there’s a cancellation fee).

The trick to finding the right option for you, is to weigh up all the costs involved and work out if it’s cheaper to stay or switch providers. Crucially, don’t forget to factor in the level of coverage you currently pay for, and any features included in your policy. If you decide to cancel and switch to a different insurer, double check you’re happy with what the policy includes.

How Can I Get The Cheapest Car Insurance For My New Car?

The type of car you have plays a big part in determining the cost of insurance. If you’re looking at bringing the cost right down, it’s worth considering a car in a low insurance group – there are 50 in total and all cars in the UK belong to one. Broadly speaking, the lower the group number, the cheaper the car is to insure.

Aside from that, you can keep costs as low as possible by:

• Paying for your annual policy in one go – this will mean you avoid paying interest.
• Increasing your voluntary excess – whatever you agree to needs to be affordable, as you’ll need to pay it before a claim can go ahead.
• Limiting your mileage – the more miles you drive, the greater the risk of being involved in an accident. If you can’t reduce your mileage, try to be as accurate as you can, as overestimating can bump up your premium unnecessarily.
• Improving car security – you can shave money off your premium by keeping your car as secure as possible. That could mean parking it in a locked garage, on a private driveway or investing in an alarm system or immobiliser.
• Considering all policy types – comprehensive car insurance might be the highest level of coverage available, but it doesn’t always mean it’s the most expensive. In some cases, third party policies actually cost more so it really pays to compare.
• Comparing policies – making the most of comparison sites like mustard.co.uk, really is one of the quickest and easiest ways to find a great value car cover that fits your needs and your budget. You can start a quote online right now, or speak to an expert on 0330 022 8825.