According to reports, auto insurance has increased by about 15% in the past year alone. Well, predictions state that it won’t get better and so, it makes sense to try and keep your car insurance costs down. Here are a few tips on how to make that possible.
Do Your Homework
Most people tend to take the first quote they get, but this is not advisable especially when it comes to purchasing insurance. Prices for the same coverage can vary substantially between insurance companies and so, it’s best to use a price comparison site to find the best deal. Do not assume the insurance company you used for another policy will be cheap due to your loyalty. That rarely happens, and so, it’s best to explore all your options.
Get Rid of the Extras
According to Money Expert, many insurance providers will try and convince you to add all kinds of extras to your policy. They are not free, but they are not mandatory. Additional features like breakdown cover, windscreen cover, legal services and courtesy car provision all sound handy, but they only make your policy expensive. If you don’t need them, cut them out.
Think About How Regularly You Drive
How much you drive and the way you use your car can significantly affect the cost of your coverage. If you only drive a few thousand miles per year, you can save some money by putting a lower mileage cap on your insurance policy. If you do not drive to work, then remove the commuting option. All this brings the insurance costs down.
Think About Your Named Drivers
Adding other drivers to your policy is a double-edged sword. It can work for or against you in keeping the car insurance costs down. Young and less experienced drivers, along with those who have motoring convictions will bring up the premiums. If they do not drive your car regularly, consider adding them temporarily instead of paying to keep them on your auto insurance policy. Adding a more experienced driver, on the other hand, can reduce your premiums.
Increase your Excess
Increasing the voluntary excess is a relatively quick and straightforward way to reduce your premium. However, do keep in mind that if you make a claim, you have to be able to cover the cost of the increased excess.
Consider Your Profession
Some professions are considered to be higher risk than others and tend to be charged more. You should not lie about your line of work, but be a little creative in the job description part. It can make a significant difference when it comes to premiums.
Install a Blackbox
Telematics has become quite popular in the insurance world. They are especially helpful for young drivers who are looking to lower their cost of insurance. Tracking when and how you drive gives the insurance company better access to your risk, and they will be able to tailor your costs. Most insurance providers will give a discount for merely subscribing to a telematics policy. Also, if you drive safely, you can expect a reward of lowering the premium costs.
Pay Upfront
Most insurance providers will allow you to pay on a monthly basis, but if you pay upfront, you can expect to be charged a lower sum. If possible, get rid of the painful part by paying a large sum, and you could save up to 10% on premiums.
This entry was posted on Wednesday, November 15th, 2017 at 6:16 am and is filed under Auto insurance, Insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.