4 Ways To Save Money On Your Car Insurance
Car insurance is a key car expense – especially for new drivers. Younger road users looking to get behind the wheel for the first time would do well to treat their search for insurance as the next stage of the learning process. As soon as the theory test has been passed, learners should dedicate their efforts into understanding how insurance works and how to get the best deal. It’s only by looking into it with such rigor that you’ll be sure not to be ripped off.
For the rest of us it’s still important not to lose out on the best deals. It’s easy to get complacent as you get older and presume that the difference between deals is likely to be less significant but it is still important and the difference could be hundreds of dollars, especially once you’ve been with the same insurer for a while and their prices creep up.
There are ways to save money and time taken in a little research and comparing options will pay dividends.
Make yourself as low risk as possible
Certain things such as the amount of time you’ve been the road without making a claim can only be built up over time (accruing no claims discount), but a few other things can be done to make insurers consider you less of a risk.
- The car – the less powerful and large the better overall. A small city runabout will cost less than a large model with a bigger engine.
- The excess – the more you’re prepared to pay in the event of a claim the less your premium will be.
- Garaged – if you can use a garage to house you car overnight, you’ll save.
- Another driver – it can reduce your premium if you have another driver on your policy. Try it and see if it alters the price.
- Fitting security equipment – a professionally fitted alarm could help reduce premiums.
- Advanced driving qualifications – passing a driving test may help reduce premiums.
- Your job – how you describe your occupation can make a difference. Don’t falsify anything of course, but a minor change of description – often one that more accurately describes your role, could save money.
- Your credit score – your credit score can have an impact on your car insurance rate.
This is the key method to reduce your insurance. Use comparison sites to quickly obtain a raft of quotes, then see if your existing insurers can match the best.
Make sure you are comparing like with like; ensure the excess and your details are the same for the quotes you’re getting as exists on your present policy. Don’t forget insurers who don’t appear on comparison sites – get a quote direct from their website.
Insurance companies are notorious for being uncompetitive with their existing customers, so it’s vital to check your renewal price. That said, there are examples of insurers who, when quoting for renewals, ask their policy holders to inform them if they have a cheaper quote, giving them a chance to match it by negotiating.
Make a calendar note for a good few weeks before your insurance is due so you have time to comparison shop and check prices properly.
Insurance companies are known for deliberately sending renewal documentation through shortly before your renewal so as to encourage you to simply renew as time is running short. Check if your present insurers have your policy on auto renewal – if it is, you’ll need to notify them if you’re switching and don’t wish to renew.
Paying by installments
If you wish to pay monthly, the installment plans from the insurer are likely to be expensive as they charge interest at high rates. You’re likely better off paying on a lower rate credit card if you don’t pay the whole amount in one go.
You can definitely save if you’re prepared to put in some virtual legwork. In the case of comparison sites, the good news is your details can be retained so next time round you simply call up your details, amend anything that may have changed, and run through the process again to get your next set of quotes. It’s certainly a lot quicker than they days when copious amounts of phone calls were involved.
Photo courtesy of: olivermonschau
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