Car insurance is a necessity to some degree, as it is required by law, but it can be expensive. However, there are ways to reduce the cost of car insurance, and in this article, we will explore five of them. Including, the value of obtaining quotations rather than just accepting a renewal premium. The quotes from one sure are known for being competitive.
Tips for Saving Money on Car Insurance
Found out how with these 5 tips you can start saving money on your car insurance.
Search the Internet for Good Insurance Deals
Shop around for car insurance. It is important to shop around for car insurance to get the best rate possible. Get quotes from a variety of car insurance companies, and be sure to compare rates and coverage options.
Online is a good place to look for insurance savings. Companies that keep appearing at the top of search lists will generally be doing that for a reason. They tend to be offering the kinds of deals that attract customers and so are the most talked about on the internet.
Seek Out Discounts
Look for car insurance discounts. There are several car insurance discounts available, and you may be surprised at how many you qualify for. Some common discounts include those for having multiple car policies with the same company, having a clean driving record, or being a safe driver. Be sure to ask your car insurance agent about any discounts you may be eligible for.
The largest discount we are ever likely to receive with car insurance is, of course, a no claims discount, and if we pay that little bit extra to protect it under a policy it can make all the difference to cheaper insurance premiums in the future.
For instance, we can enjoy no claims discounts ranging from 40 to 65% for 2 to 5 years or more claim-free years. No claims bonus is also generally something that you can retain even if you have a break from driving for say a couple of years. Any longer than two years since you have driven, then you should check if the insurer will still allow your previously built-up no claims bonus.
Voluntarily Increase Your Excess
One way to reduce the cost of car insurance is to increase your excess. By doing so, you will be responsible for a larger portion of any damages incurred in an accident. However, this also means that you will have to pay more yourself if you are involved in an accident that is declared your fault.
Considering How Much Cover You Need
There are several car insurance alternatives available that can save you money. One option is to purchase a policy with a low level of coverage. For instance, to purchase third-party only or third-party fire and theft cover. This will only cover damage to another person or vehicle in the event of an accident but is a way that you can reduce costs. You can still have cover for fire and theft if you wish.
It will depend on the value of your vehicle and whether or not it is on a finance agreement whether you may need comprehensive cover for your complete financial protection.
A benefit of extending to comprehensive cover where your budget allows for it is that you can have some windscreen cover included. The MOT requires that windscreen cracks should not be too large or in the line of the driver’s sight for a vehicle to pass. There are measurements on this, which a garage can advise you on.
Regularly Review Your Insurance Policies
Do not just accept your current position, with insurance premiums only ever increasing. It is a good idea to review your car insurance policy regularly to make sure that it still meets your needs. As your needs change, so too should your car insurance policy.
By reviewing an insurance policy such as car insurance, where there are so many variants, there may be savings to make because of changing vehicles, altered circumstances, or because of having just accepted the first quotation given in the first place.
Factors increasing car insurance premiums include:
- The car make and model
- The car age
- Car value
- Car location
- Driver age
- Driving history
Factors reducing car insurance premiums include:
- Safe driving record
- Car alarm or tracking system
- Advanced driver courses
- Low mileage
- Living in an area with a low crime rate
It is worth checking with an insurer what discounts they give as they may not be the same in all cases.
By following these tips, you can save money on a car insurance policy. Be sure to shop around and compare rates to get the best deal possible.