Ultimate List on How to Save on Car Insurance

On a tight budget, every penny counts. And if driving costs are dragging you down, it might be time to cut your auto insurance bill in half or more. Each insurer is different; however, there are a few things you can learn and do to lower the cost of insurance. Read on to learn how you can save on car insurance costs.

Consider Higher Excess

If you can afford a higher excess than the average one, consider it. Higher excess not only reduce your premiums but also cover you in case there are premium increases in future. Remember even small claims like windscreen claims and theft increase your premium.

Avoid Doubling Down on Roadside Towing and Service

Many car owners allow this to be part of their insurance policies but don’t realise it increases their premium costs. Such services are often included as a credit card feature or through their driver’s license membership.

Shop Around

It is vital that you routinely sit down and review your insurance options. Your current insurer may currently offer the best value, but if not, you might have to start comparing your choices once again.

Combine your Insurance Policies

You might be missing out on a multi-car discount if your household maintains different policies for each car at different insurance companies. Moreover, most insurance companies offer discounts if you purchase more than one type of coverage, such as paring auto and homeowners insurance. However, make sure you compare before making your final decision.

Acquire a Low Profile Car

It is relatively cheaper to insure a car that has low repair costs or is less likely to be stolen. Similarly, a car with a higher safety rating can significantly reduce the premium charges.

Kilometre Range

Some of the comprehensive policies offering the drive-less-pay-less approach can limit your cover for a particular distance range in return for a cheaper premium. Insurers like AON, CGU, Virgin Money, Apia, Budget Direct, etc., offer discounts for low kilometres. If you already know the distance you’re driving on average, mention this and use it to negotiate cheaper premiums.

Make Use of Your Garage

If your garage is full of junk, clear it out and instead use it for your car. Insurance companies like cars keep in garages and can dramatically lower your premium costs because of this. Other than the benefit of not having to scrape the ice off in winter, your garage is safer than keeping it on the road, and this will reflect when calculating your premium.

Third Party Insurance Isn’t Always the Cheapest

There are generally different options available when it comes to the type of coverage you want. You’d be forgiven if you think minimal cover equals minimal costs because this isn’t always the case. It doesn’t make sense straightway, but the comprehensive cover may be cheaper than third party cover. Merely selecting full cover makes insurers see you as low risk, hence more moderate prices. It’s best to compare options to confirm which is cheaper.

Don’t Pay Monthly – It’s Costly

Insurance companies may call it paying monthly, but in the real sense, they loan you the year’s cost. While some insurers offer zero interest for monthly payments, others will charge hideous interest rates because you’re essentially borrowing the money. If you can, pay all in one go. If not, try finding one of the many year-long zero% credit cards. Try paying your insurance early and in one swoop, rather than instalments. Even better, take out a two-year cover-if you’re flush, and avert the risk of an increase the coming year.

Speak to a Broker if you’ve Got Special Circumstances

Getting insurance can be tough if your situation is not normal. Often an insurance broker will find a bespoke policy that comparison sites cannot.

Avoid Over-valuing Your Car

You are only limited to claiming whatever the insurance company’s assessor deems is the value of your vehicle. Check your vehicle’s worth on the market before the assessor makes a price assessment since this will affect what you pay in premiums.

Haggle When Renewing

Most insurers reserve the best deals for new customers and often push up premium costs for their loyal policyholders. It can pay off if you bargain with your provider before renewal time of your policy. Some of the questions you can ask include: “why has my renewal price increased? What’s the lowest quote can you offer to keep me as your customer?” You should receive some incentive of some sort to make you stay with your current insurer.

Dig for Car Insurance Discounts

Car insurers offer distinctive ways to save. As a policyholder, you are eligible for modest discounts which are primarily meant for a low-risk lifestyle. Ask your insurer what discounts you're entitled to and review your possible savings with your agent. You may be legible for a discount if you’ve had no violations or caused no accidents in a particular period, or maybe you have taken a defensive driving course.

Remember that an insurer with many discounts doesn't necessarily offer the lowest overall premium price. The salient point is to make comparisons that will lead to a comfortable final cost while ensuring careful driving on the roads.

Car insurance shouldn’t leave you out of pocket. All these tips reveal that knowledge and research are pivotal. If you take time to invest in both, you will save a good portion of your car insurance money.