Consumer Perception: The Rise Of Market Research In The Automotive Industry

Knowing your target market can be a company's key to success in modern business. Niche marketing, particularly with the availability of much more targeted advertisement using television commercials and online ads, is growing in popularity because of its high-yielding results.

With car companies putting out commercials and ads specifically targeting groups of consumers, like women, young people, parents with small children, and even successful CEOs, does anyone wonder where
they're getting their information? The answer: market research firms. The business of capturing information about segments of the consumer population has become a business in and of itself – and a big one at that.

For example, let's start looking back at 2005 when Harris Interactive – the 15th largest marked research firm in the world – conducted a study to find out what automotive brands people felt were not only the most technologically savvy, but also which brands were perceived to be driven by socialites. Six brands made both lists: Volvo, Jaguar, BMW, Lexus, Mitsubishi, and Isuzu.

While the results are no surprise to the first four on the list, Mitsubishi and Isuzu have never actively tried to position themselves in either market. Currently, Isuzu offers four models to U.S.

consumers – its high-performance SUV "Ascender" – and three pickup trucks: the i-290 Extended Cab, the i-370 Crew Cab, and the i-370 Extended Cab. One wouldn't necessarily assume that when the majority of your line are pickups – traditionally marketed to Middle America for their rugged hauling and towing capacities – that you'd be perceived as a company known for progressive technology and appealing to socialites. But, in all honesty, that should be no surprise either.

Isuzu's recent upgrades, like the i-370's Crew Cab Comfort Package proves that Isuzu drivers appreciate luxury as much as anyone else.

It includes high-back 8-way power driver seats (and 6-way power seats for the front passenger) with lumbar support and integrated adjustable head restraints. The driver window controls are one-touch automatic and the steering wheel is leather-wrapped. In addition to the CFC-free refrigerant air conditioning and an AMFM stereo with 6-disc in-dash CD changer, it offers a state-of-the-art 6-speaker audio system.

The i-370 also excels when it comes to desired safety features. The pickup boasts an automatic front-passenger airbag suppression system, power locks, remote keyless entry, and a content theft-deterrent alarm system. The interior is available in cloth or leather.

With ten exterior paint options to choose from like Deep Crimson Metallic and Pacific Blue, the pickup looks like it should sport a much higher price tag. It's truly and impressive looking vehicle.

Driving the i-370 is bound to prove that this ain't your grandfather's pickup. All that power handles as beautifully as many luxury cars handle thanks to a hydraulically assisted rack-and-pinion power steering system , triple door seals to block road noise, and Isuzu's own Electronic Traction Control.

So with all this, it's no real surprise that Isuzu ranked right up there with legacies of luxury like BMW and Lexus. In an effort to design the best possible product for their buyers, they ultimately opened the door to markets they weren't specifically aiming for. But that just goes to show you that comfort, performance, and style appeal to everyone.

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Bad Credit Rating High Auto Insurance There Is No Appeal

Believe it or not whether you pay your bills on time can make a hefty difference in your car insurance premiums.

The adage of an experienced home contractor was that “If the yard is neat you will have no trouble being paid. If the yard is messy then you will have trouble being paid for the home repair job.

It seemed in this case that a neat lawn showed an organized person who could asses priorities and follow through with projects. A messy lawn’s inference was that if the person could not take of their lawn - the same in most cases would be true of their finances and their ability to take care of the money – including paying bills – whether it was for the contractor, a mortgage or car payments or even home or income taxes.

Car insurance premiums are assessed in the same way by auto insurance companies. In the majority of states in the United States and in the provinces of Canada a key factor. taken into account. In the algorithm of the calculation of a motorist’s auto insurance premium is the individual’s credit rating and credit history. It is estimated that up to 90 % of vehicle insurance firms use credit ratings as a standard factor in the determination of the premium rates assessed on individual motorists and the other vehicles in the families fleet of vehicles – whether they be car , truck , can or SUV.

Amazingly there are laws to provide the individual with their credit rating, credit rating and history – as long as the individual asks for it, in the steps required by law. And the credit reporting agency.

Forewarned and informed and individual can take corrective action on credit problems – whether they be missed payments or debts. As well an informed consumer is the know to identify and proceed to correct mistakes in their credit history. Not so with a motorist’s auto insurance vehicle risk score. Not only will they not know that they are being dinged for a poor auto insurance risk score, because of a poor credit history so that their premiums will be much higher than they need be, but once a high premium rate is assessed it may stay in place for many years to come – on not one but a number of vehicles.In addition it is as if the insurance industry reporting system has tentacles in the insurance industry. Should you go to for a quote to a competitive auto insurance firm your poor credit rating has been attached already to your auto insurance risk calculations. Most likely you will find that you will have the same high assessed insurance premiums whoever you go to get a quote. There is no appeal process for this.

What is the message? First of all pay your bills on time. Whether you are irresponsible, disorganized or downright dishonest you should appreciate the fact that your credit rating is more than important to you. Sure you may think that there is nothing wrong in missing a payment – for a charge card, a bank loan or a home mortgage. The higher premiums that you may receive for your auto insurance are just one example that it does matter. On top of that bad business procedures and tactics on your part, on a business long ago dissolved may still sit on your credit history as unresolved debts and liens. You may even be named on such a financial document even though you left a company long ago and are not even employed by them. Check your credit rating for credit problems, that can be resolved and also for downright mistakes and inaccuracies on your credit history. It never hurts to be thorough and it never hurts to pay cash.

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Commercial Auto Insurance For Your Business

Commercial vehicle insurance is needed to cover the cars, trucks, and vans used in conducting your business. Large fleets, as well as small businesses, should be properly covered by a commercial auto insurance policy.

What is commercial vehicle insurance?

Commercial Vehicle Insurance is a policy of physical damage and liability coverages for amounts, situations, and usage not covered by a personal auto policy. Seems obvious, doesn't it? But, seriously, knowing the difference between a personal auto insurance policy and a commercial auto policy (and when you need which) is important business—for your business. This type of business insurance covers a variety of vehicles. You may also have heard of this coverage referred to as commercial auto insurance, commercial car insurance, truck insurance, or fleet insurance.

Why do you need commercial vehicle insurance?

That's a good question. Certain business usage and vehicle types may be excluded from personal policies. Why? Since personal auto policies were not meant for businesses, they are written and rated differently. More important to you—a business owner or manager—businesses often need the particular coverages found in a commercial auto insurance policy.

Determining whether your situation requires commercial auto coverage can still be confusing. Here's a little more information and examples of when you need commercial insurance.

What does commercial vehicle insurance cover?

Commercial vehicle insurance, like your personal auto policy, provides similar coverages such as liability, collision, comprehensive, medical payments (or personal injury protection) and uninsured motorist coverage. However, there are also differences between a commercial auto insurance policy and your personal auto policy that may include eligibility, definitions, coverages, exclusions, and limits.

What are the coverages?

• Bodily injury liability coverage – pays for bodily injury or death resulting from an accident for which you are at fault and in most cases provides you with a legal defense.
• Property damage liability coverage – provides you with protection if your vehicle accidently damages another person's property and in most cases provides you with a legal defense.
• Combined single limit (CSL) – Liability policies typically offer separate limits that apply to bodily injury claims for property damage. A combined single limits policy has the same dollar amount of coverage per covered occurrence whether bodily injury or property damage, one person or several.
• Medical payments, no-fault or personal injury coverage – usually pays for the medical expenses of the driver and passengers in your vehicle incurred as a result of a covered accident regardless of fault.
• Uninsured motorist coverage – pays for your injuries and, in some circumstances, certain property damage caused by an uninsured or a hit-and-run driver. In some cases, underinsured motorist coverage is also included. This is for cases in which the at-fault driver has insufficient insurance.
• Comprehensive physical damage coverage – pays for damage to your vehicle from theft, vandalism, flood, fire, and other covered perils.
• Collision coverage – pays for damage to your vehicle when it hits or is hit by another object.

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What is car insurance? Learn About Auto Coverages

Auto accidents can happen, even to the best of us. An auto insurance policy can help cover repairs to your vehicle and medical costs in the event of an accident. Think of it as your firewall against economic disaster should you be found at fault for property damage or injuries to other people.

Have you ever compared auto insurance rates with a friend or a family member only to discover your premiums are different? Check out this video on how auto insurance rates are determined.

Understanding Your Auto Insurance

We admit it. Auto insurance isn't the easiest thing to comprehend. You may feel like you need a PhD, the Rosetta Stone, and Sherlock Holmes to de-code all of the language about your auto insurance coverages.

Really, though, it's not that complicated. Here's a quick overview that will have you understanding auto insurance so well, you may just want to read your policy for fun! (OK-maybe not.)

What are the coverages?

1. Bodily injury liability provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you.
   In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets.
   Bodily injury liability covers injury to people, not your vehicle. Therefore, it's a good idea to have the same level of coverage for all of your cars.
2. Medical payments, no-fault or personal injury protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. There may also be coverage if you are injured by a vehicle as a pedestrian.
3. Uninsured motorists coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. In some states, there is also uninsured motorist coverage for damage to your vehicle.
   Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance.
4. Comprehensive physical damage coverage pays for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire or animals. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket.
5. Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.
   To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car.
6. Property damage liability protects you if your car damages someone else's property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.

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Colorado Registration Information

The Centennial State

Moving to Colorado? Register your vehicle.

If you have recently moved to Colorado, you must apply for a Colorado title and registration for your vehicle within 30 days from establishing Colorado residency. You will need to apply in the County Motor Vehicle Office in the county where you reside.

The following documents are required:

• Your out-of-state title, or current out-of-state registration.
• If you live in Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Pitkin or Weld counties, you must show proof of a Colorado vehicle emissions test.
• A vehicle identification verification form (DR 2087) completed by a law enforcement officer, a licensed Colorado motor vehicle dealer or a licensed Colorado emissions testing station.
• A current and accurate odometer reading.
• Proof of vehicle insurance coverage (insurance card, copy of insurance policy or letter from your insurance company on the company's letterhead paper).
• If a lien exists on an out-of-state title, the lienholder's name and address must be provided if not shown on the out-of-state title or registration.

Once you arrive at the county Motor Vehicle office, you will need to pay the title and registration fees.

Your Colorado title will be mailed to you if there are no liens filed against the vehicle. If there is a lien, the title will be mailed to the lienholder. Please allow 4 to 6 weeks for delivery.

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Denver Car Insurance

Denver Car Insurance—Knowing More

Unlike many other metropolitan areas, residents of Denver are very car-dependent. Nearly 80% of Denver workers either drive or carpool with others to work. With all those vehicles out on the road every day, it's important to make sure you and your vehicles are covered by a dependable car insurance company. And even though you may live in the Mile-High City, it doesn't mean your car insurance rates have to be sky-high. See how much you could save on quality car insurance with GEICO by starting your Denver auto insurance quote today.

Finding Your Way Around Denver

While most of Denver's street grid is oriented north-south and east-west, the oldest parts of Denver—including much of the downtown area and the neighborhoods of Auraria Campus and Lower Downtown (LoDo)—were designed in a grid oriented diagonally (northeast-southwest, northwest-southeast). The NW-SE streets are numbered; the NE-SW streets are named.

While this diagonal design can be a bit disorienting to drive in, it is actually ideal for melting snow. In the diagonal grid, NW-SE streets get direct sunlight in the morning, and NE-SW streets get it in the afternoon. In the normal N-S, E-W street grid, only the N-S streets get direct sunlight.

The 17th street district is home to many of Denver's large corporate buildings, including Republic Plaza, the tallest building in Colorado at 714 feet, located at 370 17th Street, Denver, CO 80202.

Two major interstates cross through the Denver Metro Area: I-70 and I-25. Interstate 25 runs north-south, while Interstate 70 runs east-west. Most of the major thoroughfares in Denver intersect one or both of these interstates. Denver also has an almost-complete beltway, better known as "the 470's," which consists of SH-470 (also known as C-470) in the southwest, E-470 (southeast to northeast), and Northwest Parkway.

Denver Bicycle Laws: Share the Road

While you're driving in Denver, keep in mind that it is a very bicycle-friendly city. Bicycles are allowed on almost all Denver streets. Many of Denver's streets have designated bicycle lanes, so many Denver residents bike to work. There are also over 850 miles of paved bike paths through Denver's parks and along its bodies of water, such as the South Platte River and Cherry Creek. The Denver bicycle sharing program, B-Cycle, is one of the largest in the United States.

According to Denver's Municipal Code, bicycles are considered vehicles. Cyclists have equal right to the road and must obey the same rules of the road that vehicles do. But rules alone don't prevent accidents. Whenever you're driving in Denver, watch out for bicyclists and treat them as you would any other vehicle. By law, motorists must follow at a safe distance and allow for at least three feet of space when passing a bicycle.

Denver Curfew Law

The City of Denver has a strict curfew law which restricts residents and visitors under age 18 from being "in any public place or on the premises of any establishment during curfew hours" (Sunday through Thursday, 11 pm–5 am; Friday and Saturday, midnight–5 am).

More about Colorado Car Insurance

Need to know about Colorado required insurance coverages? How about Colorado's teen driving laws and graduated licensing program? Take a look at our Colorado auto insurance page for important info that will help you make the right choices about buying car insurance.

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Colorado Car Insurance

Colorado Car Insurance—Before You Start Driving Here

Whether you're hitting the slopes or heading to the office, make sure you have valid Colorado car insurance when you drive in the Centennial State. Drivers who fail to show proof of insurance can face penalties upwards of $500, points added to their driving record, and in some cases suspended licenses and community service hours. Drivers are also required to show proof of insurance to the Colorado Bureau of Motor Vehicles in order to register vehicles. If you need car insurance or want to switch companies, you can get Colorado car insurance quotes online.

Ski Rack Requirements In Colorado

There are laws on vehicle height and driver visibility that could cause you to be pulled over by the police. When fastening skis and other equipment to the roof, drivers need to make sure there's no visual obstruction, like ski tips that could block the driver's view through any of the vehicle's windshields or windows. If you place a ski rack on a tall vehicle, like an SUV or van, take notice that the rack does exceed the state's maximum allowable height of 13 feet. Violations are subject to fines and surcharges.

Colorado Auto Insurance Minimum Requirements

Vehicle owners driving on Colorado roads are required to have at least the following minimum limits on their insurance policy:

• Bodily Injury: $25,000 per person, $50,000 per accident
• Property Damage: $15,000 per accident
• Uninsured Motorist: $25,000 per person, $50,000 per accident*
• Medical Payments: $5,000 per accident*

*Uninsured Motorist and Medical Payments can be rejected by signing an option form.

There are additional optional coverages that you may carry to better protect yourself and your vehicles. A GEICO insurance counselor can assist you in choosing the best coverage for your needs.

Colorado Teen Driver Licensing Process

For Colorado teens who want to get their license on their 16th birthday, they'll need to start driver's education before age 15. Colorado requires teens to have held a learner's permit for at least 12 months before applying for a Colorado driver's license. Colorado law prohibits drivers under 18 years of age from using a mobile phone while driving unless it is to contact the police, fire department, or it is an emergency. Drivers 18 and older may not use a mobile phone for text messaging while driving unless it's to contact the police, fire department, or it's an emergency.

The process for obtaining a driver's license varies depends on the driver's age:

• If you start at or before age 15 and 6 months, you must complete a 30-hour driver's education course before you can apply for a learner's permit (minimum age 15). Permit holders who have logged 50 hours driving time, completed a 6 hour behind-the-wheel training course, and have held their permit for at least 12 months can then apply for a driver's license.
• If you start between age 15 and 6 months up to age 16, you can either complete a 30-hour driver's education course or a 4-hour classroom driver awareness program to be eligible for a learner's permit. Permit holders who have logged 50 hours driving time (plus 6 hours behind-the-wheel training if you are younger than 16 years and 6 months when you apply for a license) and who have held their permit for at least 12 months can then apply for a driver's license.
• If you start at age 16 or 17, there are no prior driver's education requirements before being eligible to apply for a learner's permit. Permit holders who have logged 50 hours driving time and who have held their permit for at least 12 months can then apply for a driver's license. Additional 6 hours behind-the-wheel training is optional.

For the first year licensed driving is prohibited between midnight and 5 am, unless accompanied by an instructor, parent, or legal guardian.

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10 car insurance myths

Our guide reveals the facts behind 10 common misconceptions about car insurance

Car insurance can be confusing, and it’s made even more so by the myths circulating. You need to know the facts from the fiction or you could find yourself overpaying, or worse — without the cover you need to drive legally. Read on to find out the truth behind 10 common car insurance myths.

Myth 1: Third party cover is always cheaper than comprehensive

The truth: While it might seem logical that a lower level of cover would cost less, this is often not the case. Drivers who opt for a lower level of cover typically have a history of making more claims, which has driven up the cost of these policies.

For many drivers, comprehensive cover can cost the same or even less than third party only or third party, fire and theft cover — with the added bonus that your own vehicle will be covered for damage. You can read more about this in our guide.

Myth 2: My premium should go down or stay the same each year if I don’t claim

The truth: In an ideal world this would be the case — after all, you’re building up a no claims bonus every year you don’t claim. However, there are many external factors at play that affect the cost of insurance across the board. 2017 in particular has seen many changes that have driven up prices for most motorists.

It’s also worth bearing in mind that most insurers have a maximum no claims bonus, so you’ll stop building a discount after a set amount of years. Insurers will also take your age into account, so once you reach a certain age you will be considered a higher risk and might see your premiums rise. You might also notice your premium changes if you make any adjustments to your policy, such as changing your job or address.

Myth 3: No claims bonus protection will stop my premium increasing

The truth: Many people think paying extra to protect their no claims bonus will prevent their premium from increasing if they make a claim. But like many things relating to insurance, it’s not that simple.

While you won’t lose your no claims bonus if you make a claim and you’ve paid to protect it, your premium itself could still go up as your insurer might perceive you as a higher risk. As your no claims bonus is a discount applied to your premium, the amount you pay at renewal might still increase. And there’s a limit to the protection offered – if you make more than one claim in a year, you might find that your insurer removes a year or two’s bonus (but you’ll likely still be better off than if you had no protection and lost your whole discount). You can find out more in our no claims bonus guide.

Myth 4: I won’t have to pay excess if a claim wasn’t my fault

The truth: If you make a claim that wasn’t your fault (e.g. if a third party crashed into you at traffic lights), your insurer will usually waive your excess if it can prove you weren’t at fault and it’s able to claim its costs back from the third party. However, you’ll be responsible for paying your excess upfront even if you’re later entitled to a refund, so make sure you select a policy with an excess you can afford. You can read more about car insurance policy excesses and how they work here.

Myth 5: Comprehensive cover allows me to drive any car

The truth: It’s a common misconception that having comprehensive cover on your own vehicle automatically covers you for third party liability when driving someone else’s car. In fact, this used to be a standard feature of comprehensive policies, but it’s now offered by fewer insurers.

Some comprehensive policies do include this, but it’s important to check your documents rather than assuming you can drive another car. Look out for ‘driving other cars’ (DOC) cover in your policy — and bear in mind that even if you have this included you will only be covered for third party liability so won’t be covered for any damage to the car you’re borrowing. Read our guide to find out more.

Myth 6: Young drivers should get insurance in a parent’s name

The truth: Many parents want to help their children out financially, and might consider taking out insurance in their name or putting themselves as the main driver to cut the cost of their child’s insurance policy.

But while it might seem like a legitimate loophole, putting insurance in someone else’s name to get cheaper cover is known as fronting and is a form of insurance fraud. Fronting is illegal and has serious consequences, including penalty points, disqualification, and fines of up to £5,000 if the case is taken to court. You can find out more in our guide to fronting.

Myth 7: Black box policies have a curfew

The truth: Most black box or telematics policies no longer have set curfews. While this was a feature in most early black box policies, insurers have moved on and most now base premiums on driving behaviour such as mileage, speed, braking and accelerating.

While driving at night may affect your driving score on some policies, there are now very few black box policies that restrict the times of day you can drive. This is far from the only misconception about black box policies — in fact, we’ve rounded up some myths specifically about the technology here.

Myth 8: I don’t need to insure my car if I don’t drive it

The truth: Since Continuous Insurance Enforcement (CIE) came into effect in the UK in 2011, all cars must be insured unless they have been declared off-road with a Statutory Off-Road Notice, known as a SORN. You can only SORN a car if it’s kept off the road on private property — for example on a drive or in a garage. If it’s kept on a road but never used, you still have to make sure it’s covered for at least third party liability. You can read more about SORN requirements in this guide.

Myth 9: Paying monthly is a cheap way spread the cost of cover

The truth: While it might seem sensible to spread the cost of insurance with monthly payments, it almost always costs more in the long-run.

Most insurers will charge an upfront deposit as well as interest, making your premium cost much more over the year. While it can be difficult to find money for a year’s cover upfront, paying in one go usually works out much cheaper. Our guide to annual and monthly payments explains more.

Myth 10: It’s best to let my policy automatically renew each year

The truth: There are no prizes for staying loyal when it comes to car insurance, as you can often find a cheaper deal by shopping around. While you might be tempted by the convenience of letting your insurance policy renew, it could be costing you dearly.

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Insurance premium tax

The 2016 Autumn Statement announced a further rise in insurance premium tax (IPT), but what is it and how does it affect insurance costs?

In the latest Autumn Statement on 23 November 2016, Chancellor Philip Hammond announced insurance premium tax (IPT) will increase from the current rate of 10% to 12% in June 2017.

What is insurance premium tax?

Insurance premium tax is charged as a percentage of insurance premiums across most general insurance products, including car, home, travel, pet and private medical insurance. Other types of insurance, including life insurance, are exempt from the charge.

IPT was introduced in 1994 to raise revenue from the insurance sector, which was then viewed as being under-taxed. The rate of IPT stood at just 2.5% when it was first introduced.

While IPT charges remained stable until 1997, the rate has increased nearly fivefold since it was introduced, with more dramatic increases being introduced in the last few years.

The treasury has described IPT as a tax on insurers, and pointed out that it is up to insurers whether to pass the costs on to customers. However, in most cases, IPT is added to customers’ premiums and any increases will directly affect the price they pay.

Because insurance premium tax is a flat rate across all policies, people with the highest premiums are most affected by IPT. For car insurance policies this impacts inexperienced drivers, and for home insurance people who live in high-risk areas are likely to pay the most IPT.

Latest rise in IPT

Chancellor of the Exchequer, Philip Hammond, announced a further increase to insurance premium tax in his first (and last) Autumn Statement on 23 November 2016.

The rate will rise to 12% from June 2017, from its current level of 10%.

The current rate was brought into effect in October 2016, after rising from 9.5%. The tax rate previously jumped from 6% to 9.5% in 2015.

The new rate in June will mark the third increase in 18 months, with the rate of IPT doubling in that time period.

Despite the sharp increases in recent years, the rate of IPT in the UK remains lower than in many other European countries. The current 10% rate is the eighth highest in the EU, and June’s increase will take the UK to sixth position.

What does it mean for insurance costs?

Insurance premium tax affects an estimated 25 million car insurance policies and 25 million home insurance policies throughout the UK.

According to the Association of British Insurers (ABI), the tax increases introduced between 2015 and 2017 will add more than £25 a year to the average comprehensive car policy and £19 to combined building and contents cover.

The best way to save on your insurance costs and beat any price rises is to shop around for a better deal. With uSwitch you can compare quotes from different providers in just a few minutes.

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How do I cancel my car insurance policy?

Buying car insurance is not just a huge expense, but a big commitment, lasting 12 months (or longer if you auto renew). But things can change: maybe you found a cheaper deal elsewhere, want to sell your car, or simply don’t want to be tied down to your car insurance policy any longer. In this guide we explain everything you need to know, from how to cancel car insurance, car insurance cancellation charges, and the all-important 14-day cooling off period.

The first thing you need to know about cancelling car insurance is that it is possible – you are allowed to do it (but remember your car must be insured at all times, so make sure you don’t leave any gaps between cover). Unfortunately, the second thing you need to know is that there is almost always a catch, which involves having to pay a car insurance cancellation fee and possibly some other admin charges. In this guide we explain all the situations where you might be required to pay a car insurance cancellation fee, and how to cancel car insurance without paying a penalty or at least doing so in the cheapest possible way.

Having a one-year commitment to your car insurance policy can feel like a burden, but the truth is you can cancel at any time. And if you know what the rules are relating to your car insurance cancellation policy, then you can avoid paying a hefty fee when you do eventually need to cancel.

You might be only a few months into your car insurance policy, but need to raise some money by selling your car, or maybe you’ve shopped around and realised another insurer can give you a better deal. Perhaps, you’ve made a claim on your insurance, and you are now worried that the insurer won’t let you cancel the policy. Or perhaps you pay for your car insurance in monthly instalments and want to know if will still be able to cancel your car insurance. The answer is yes to all of the above, but there is still a lot to know before you pick up the phone to cancel your car insurance policy.

Cancelling your car insurance early

You can definitely cancel your car insurance early regardless of your reasons for doing so. However, the type of charges and how much you will have to pay for cancelling early will depend on your insurer’s policy, how much you have already paid for your cover, and how long you have left on the insurance term.

If you pay for your car insurance on a monthly basis, the longer you have left on your insurance policy term, the more you will likely have to pay to cancel your car insurance. Similarly, the less you have paid already, the more you will have to pay in order to cancel your car insurance policy early. Each car insurance provider has a different policy when it comes to cancelling so check your insurance documents first.

In most cases you should still be able to get a refund on some of the months remaining on your insurance term. Nonetheless, all of the extra features you are paying for on your car insurance policy, such as breakdown cover and legal expenses cover, are likely to be non-refundable. So if you cancel your car your insurance, you probably won’t get the money back on those features. You will also lose your no claims discount for cancelling your car insurance policy early.

However, there is one way to cancel your car insurance early without paying anything (well, almost). But you have to do it during the cooling off period.

What is the car insurance cooling off period?

You may have heard of the 14-day cooling off period when researching how to cancel your car insurance policy. Luckily, it can help you cancel your car insurance without having to pay anything (although there might be a catch depending on your insurer).

The cooling off period is a legal requirement for all car insurance policies. It is usually applicable for the first 14 days of when the cover starts or when your policy documents are sent to you, whichever is later. Some car insurance companies will have a longer cooling off period, but as a minimum this period is 14 days and that is generally what most policies will have.

During this period you are free to change your mind and cancel your policy for any reason at all. Some insurers will charge an administration fee for cancellations during the cooling off period, but this will still be a lot cheaper than what you will pay if you cancel any time after. Before you buy any car insurance policy read the cancellation terms and definitely check the details surrounding the cooling off period.

Getting a refund after cancelling car insurance

If you pay for your car insurance monthly, you are not necessarily paying for the cover month to month. This is technically a credit agreement allowing you to spread the cost of your 12-month insurance policy over a monthly basis. With this in mind, cancelling your car insurance even if you pay monthly does not mean that you aren’t going to be subjected to the same cancellation charges as someone who paid for the policy upfront.

The cancellation charges will vary depending on your policy and how long you have left on your policy, but if you pay monthly, you will probably have to pay an extra penalty, which is calculated as a percentage of the total policy price.

You are, however, most likely entitled to a refund when you cancel your car insurance regardless of whether you pay monthly or upfront (unless you have made a claim that year – more on this below). Most insurers will not offer a refund if you are cancelling with only two months to go, so if you are that far into your policy, it will usually be cheaper to just see it through to the end. You will usually be refunded on a pro rata basis for the months you will not be receiving car insurance cover for, minus the last two months and all the cancellation charges.

Before cancelling, especially if you are planning to switch to a cheaper deal, read the cancellation conditions and see if the savings of your new deal outweigh the costs of cancelling your current car insurance policy. Bear in mind that you will lose any no claims bonus too, so decide if it’s worth sticking around to claim that.

Can I cancel my insurance if I’m selling my car?

You can cancel your car insurance if you are selling your car, or for any reason. But if you are selling your car and not planning to get a new one, you absolutely should cancel your insurance. If you were planning to get a new car to replace the one you are selling, speak to your insurer and see if they will cover the new vehicle to avoid you paying a cancellation fee. If you’re not happy with their quote, you can shop around and cancel your current policy if the savings on the new policy will outweigh the cancellation fees — just remember that you may lose any no claims bonus.

You will be charged for the administrative costs of updating the policy, but you could also find your premiums increasing if the insurer finds there is added risk with insuring your new car. On the other hand, your new car could be in better condition and in a lower insurance group, meaning you could get cheaper car insurance from the same policy.

However, if you decide your car insurance still isn’t going to work out for your new car then it could work out cheaper to move to another deal. Just bear in mind all of the costs that could come up when cancelling. It may end up being cheaper to stick with the same deal.

Cancelling car insurance after making a claim

You can still cancel your car insurance even after you have already made a claim. Unfortunately, you won’t be able to claim a refund on any months you have already paid for. Plus, if you pay monthly, you will have to pay off the remainder in a final lump sum. This is the area of cancellation you ought to be wary of. If you have made a claim and want to cancel, weigh up if it’s worth it, as it could be quite expensive.

Cancelling at the end of your car insurance policy

If you let your policy auto renew, his means that you will be pulled into another 12 month deal with your insurance provider. If your cover is coming to an end and due to renew, it’s a good idea to shop around on a price comparison website like uSwitch to see if you could get a better deal than the renewal price offered by your current insurer. If you find a better quote, simply call your insurer and ask them not to renew your cover. If you ask them to cancel the policy effective of the day it was due to come to an end, you will not be charged a cancellation fee.

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How technology can cut the cost of car insurance

Car insurance premiums are based on several risk factors, but new technology can help to reduce the risk of a crash or claim. Our guide explores the gadgets that can help to cut the cost of your car insurance.

Driverless and autonomous features

Driverless cars, previously only seen in science fiction, are slowly becoming a reality as manufacturers explore the technology.

It’s not yet clear how driverless cars will affect insurance premiums, but with around 90% of car accidents caused by human error, the potential for crash reduction is significant.

It is hoped that this could lead to cheaper insurance premiums for both owners of driverless cars and other road users. However, it will take time for insurers, manufacturers and officials to determine who takes responsibility in the case of an accident before the technology becomes mainstream.

But you don’t have to wait for fully driverless cars to see the benefits of the technology. More than half of new cars are now sold with autonomous features such as parking assistance and automatic braking. Euro NCAP has found autonomous braking systems have been responsible for a 38% reduction in real-world rear-end crashes across Europe.

Insurers are now responding to this with cheaper premiums to reflect the cars’ reduced crash risk. Some new policies aim to cut prices based on the accident-reducing potential of driverless features such as parking assist and ABS. These new types of insurance policy also cover the driver in the case of software errors and hacking of the system.

Black box insurance

Black box technology (also known as telematics) can help insurers to offer tailored premiums based on actual driving behaviour. Black box insurance uses a small device or mobile phone app to monitor drivers’ usage of their cars.

As well as the usual risk measures such as age, car type and driving experience, black box insurers also take into account factors such as speed, braking and times of car use so they can get a better idea of the drivers’ risk.

Black box insurance offers an opportunity for drivers to prove to their insurer that they can drive safely – this means it can be particularly good value for those usually considered high-risk, such as young and inexperienced drivers.

In fact, drivers aged 17-21 with zero no claims could save an average of £1,282 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between November 2016 and January 2017).

Like all insurance policies, no one black box policy is the same and each one offers a different way to save. Some insurers will offer black box policies at a cheaper starting rate than their standard policy, while others will keep track of your driving behaviour and offer quarterly or monthly refunds or rewards for safe driving.

Dashboard cameras

Dashboard cameras, also known as dash cams, are growing in popularity as they become more widely available and affordable.

Dash cams are small cameras mounted on the car’s dashboard or windscreen that record each journey, making it easy to revisit the events and conditions leading up to an accident. They can help to determine the cause of an accident and speed up insurance claims by making it clear whether the driver was at fault.

Some insurers give an automatic discount if you have an approved dash cam. The camera could also save you money in the long run by making it easier to prove when an accident was not your fault.

According to uSwitch research, 27% of drivers have been unable to prove that they were not to blame for an accident. Unless you can prove you were not at fault you could lose your no claims discount and face a price hike at renewal time. Most insurers will now accept dash cam footage as part of a claim, helping to prove innocence in these cases.

Extra security

Adding high-tech security features to your car can also help to reduce your insurance premiums. As well as the risk of an accident, insurers base their premiums on the likelihood of your car being stolen, vandalised or broken into. By installing extra security features, insurers will consider you at a lower risk of claims of this type.

A professionally fitted alarm will help to deter thieves and vandals, while installing a tracker in your car can also act as a deterrent while making it easier to recover your car if it is stolen. These security measures should help to convince your insurer that your car is a low risk, and it’s likely you will be offered cheaper premiums to reflect this.

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