The Top 5 Ways to Reduce Your Car Insurance Premium

1. Shop, shop and shop again – the main thing people forget to do is to shop around. The one thing to do if you do nothing else is to call a few insurance companies and get a few car insurance quotes. Surprisingly to some, the quotes can change by hundreds of pounds. 2. Take … Continue reading “The Top 5 Ways to Reduce Your Car Insurance Premium”

1. Shop, shop and shop again – the main thing people forget to do is to shop around. The one thing to do if you do nothing else is to call a few insurance companies and get a few car insurance quotes. Surprisingly to some, the quotes can change by hundreds of pounds.

2. Take out more than one insurance policy – a lot of insurance companies now provide insurances for a variety of covers. Not only car insurance, but home insurance, contents insurance, life insurance, pet insurance – every type of insurance you can think of can generally be bought in the same place. Whilst it may not seem the cheapest quote around for each individual quote, buying them together can provide you with a significant discount.

3. Increase your excess – for younger drivers, this is often their first port of call when reducing their insurance premium. It’s often difficult enough to actually get car insurance when you’ve just passed your test, never mind getting a reduced premium. So the answer? Increase your own personal excess. All insurance companies ask for a set excess. However, most will also ask if you would like to contribute a voluntary excess also. This voluntary excess being what you would pay in the event of an accident on top of the standard excess. Of course, it works out more expensive should you have an accident, but if you don’t claim on your insurance, then you could save yourself a packet.

4. Don’t get into trouble – criminal convictions, whether they are vehicle related or not, will increase your car insurance premiums. And the bad news is they stay on your record for five years. So for example, you hit a bad patch when you were 18 and committed burglary, stealing a television from your next door neighbours. They pressed charges and you did a few hours community service. It hit you and you never did anything criminal again. However, you’re still going to be feeling the repercussions on your car insurance when you’re well into your 20’s.

5. Be a safe driver – the most sensible but most overlooked thing to do is simply be a safe driver. Driving within the speed limits, with a full MOT and tax will ensure you don’t attract any unwanted attention and receive a fine and points on your license. The more points you receive on your license – and remember, you can receive 3 points and a £60 fine even if you’re driving at 34mph in a 30mph zone – the higher your insurance premiums will be. And don’t forget, 12 points on your license and you need to take your theory and practical tests again (this is reduced to 6 points in your first 2 years of driving).

There are several different measures you can take to reduce your car insurance premiums. The above are the top five, but there are many more to choose from – just remember, be a safe driver and think before you buy and you should be on the right road to lower car insurance premiums.

5 Ways to Lower Your Car Insurance Premiums

While many things that affect your car insurance premiums are beyond your control (such as your past driving record, oops), there are some factors you can control. Here are 5 tips to that can help in lowering your car insurance premiums.

Take a defensive-driving course – A defensive-driving course costs as little as $50 and a weekend of your time yet can save you as much as 10% on your premium year in and year out. Other worth-while discounts to ask about are good-student discounts, association discounts, and home-office discounts.

Buy auto and homeowners insurance through the same company – Most insurance companies offer multi-line discounts for customers who buy more than one policy through them. My multi-line discount at Allstate, for instance, is 10% off the cost of both policies.

Skip the middle-man – It’s usually cheaper to buy directly from the source rather than through an insurance broker. Fewer middle-men means fewer mark-ups between your policy and your wallet. Allstate, Progressive, Geico, E-Surance, and Safe Auto will all let you by a policy directly from them on the internet.

Raise your deductible – Let’s face it: insurance is a loser’s game for the consumer. The law of probability is against you getting your money’s worth out of your insurance policy. If it wasn’t, the insurance companies would go out of business. Insurance should only be used to cover losses you couldn’t afford to cover yourself. To that end, raising your deductible to the highest allowed (often $1000) could lower your premium up to 40%. In all likelihood, you will save far more on the reduced premiums over the years than you will pay out in higher deductibles.

Drop coverage on older cars – As a general rule, you should drop comprehensive coverage if your annual comprehensive premiums are greater than 10% of the value of your car. For example, if your annual premium for comprehensive coverage is $500 but your car is only worth $4,500 you should drop your coverage to liability-only.

Top 4 Reasons Your Car Insurance Premium is Too High

Many car users often wonder about the difference in the amounts of premium paid by them and their relatives and friends. If you find yourself in a similar position, don’t feel alone. In Canada the car insurance premiums are high, but they also provide comprehensive coverage instead of partial ones.

The key is not to keep paying higher rates of premium, but it is to find areas where premium rates can be curbed to a more reasonable level. All you have to do is to find out the reasons so as to why you are paying higher premium rates.

First and the most basic reason is bad driving behavior. In certain circumstances, it is very easy to switch from being a safe and careful driver to a reckless one. For example, you might be late for office and in your haste, you step on the gas. Ditto if you are late and you have a plane to catch. In such cases, it is almost certain that your earn driving tickets. These driving tickets prove very detrimental once you apply for car insurance as the insurance company will not sell low premium policies to people who have a higher probability of getting in an accident. So, to avoid higher premium rates, you need to be a safe and a responsible driver and not let parking tickets come in between you and a really good insurance policy.

Secondly, your taste for expensive and powerful cars may contribute significantly to an increase in you premium payments (though if you probably have the money for buying an expensive car you wouldn’t worry too much about the extra premium payments) This is because these cars have expensive equipments, which in the event of an accident, will be needed to be replaced and so the insurance companies will charge a heft premium payments. Also, cars that are found to be more accident prone than others attract higher premium payments like bees to nectar. On the other hand, if you research your cars and buy models which are less accident prone, you will surely get lesser premium rates.

Next, comes your credit score. This credit score will measure your sense of responsibility and reliability. If you have a good standing, the insurance companies will be eager to give you affordable premium rates. With a bad credit score, insurance companies are unlikely to provide you with discounts they offer to other customers having a better credit score.

Another important point is to go through the policies in detail and check if you have missed out something. More often than not, customers tend to cash in completely on a discounted insurance policy as they overlook certain finer details. In order to insure full utility of your insurance policy, it is advisable that you go through the policy in detail and check whether you have missed out anything.

If you avoid these given hurdles, you will surely save up a lot of money on your insurance policy.