Car insurance is one of the most expensive costs involved in driving a car, but it’s not something you can do without. That doesn’t mean you have to blindly pay whatever the first insurer you contact, quotes. There are several simple things you can do to reduce the cost of your premiums. Read through these 8 items and you’ll definitely be more aware of ways to save on car insurance right away.
1. Shop around and buy Car Insurance online
Statistics show that most people simply renew their current policies without shopping around. The internet makes it easy to compare prices from different insurance companies, so why not take advantage of this? Plus, you usually get a discount of 10% or more just for buying your car insurance policy online.
2. Type of Car Insurance Policy
Do you really need a comprehensive policy with all the extras? A Third Party, Fire & Theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn’t an expensive model. However, if you driva a financed car, you are required to get Comprehensive Cover. Third Party Only cover is best suited for old cars thar are already paid in full.
3. No claims discounts on Car Insurance
Almost all policies feature a discount that increases for every year you don’t submit a claim. The higher the discount available, the more you could save. Also look at insurance companies offering a no claims bonus for life feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere in the future.
4. Car Insurance Policy: Excess
The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums. Keep in mind that you will be responsible for payment of the selected amount before your insurance provider pays the outstanding amount.
5. Security of your car
Fitting your vehicle with an alarm, immobiliser, or other security devices may allow your premium to be reduced. Overnight parking of your car in a locked garage will also reduce your premium as compared to leaving your car in an open parking space or at the side of the road.
6. Try to pay your Car Insurance annually
Many insurers charge you interest for the privilege of paying in monthly installments. Pay annually if you can afford it or look for a car insurance company who does not charge extra for monthly payment of premiums.
7. Mileage on your car
The more mileage you run up every year, the more your insurance will cost. Even if you are unable to reduce your mileage, make sure that you provide your insurer with an accurate figure.
8. Drivers on your Car Insurance Policy
The more drivers you have on your policy, the more it will cost. Reduce the number of people insured to drive your car to the minimum possible. Also try to get the policy in the name of the designated driver with the lowest risk profile. For example, if a car is driven by both a man and a woman, insuring it in the woman’s name will often result in a lower quote.
An interesting fact is that female drivers may pay up to 29% less on car insurance than their male counterparts.
This article originally posted on http://insuretodayblog.com/and re-posted here with permission.