So you already have car insurance, or did the smart thing and got a few online insurance quotes. What now? Well, now you need to make sure you have the best price and perhaps try and get the price down when possible. So how do you do this? You start by reading our:
9 ways to reduce your car insurance costs:
Below, we will give you 9 short tips on how to reduce your car insurance cost or at least understand what makes the price go up. The tips are relevant both if you are about to renew your current car insurance policy or if this is the first time you are getting car insurance.
Here we go:
1. Security and anti-theft measures. Where you keep your car and what anti-theft measures you have, have a direct effect on the price of your car insurance. So, if for example you keep your car in a locked garage and have a decent immobilizer (a digit code required before starting the car) or a tracking device, then this will reduce your insurance rates. If you don't have these measures, try adding any option possible such as the good old steering wheel lock – don't forget to tell the insurance companies about all these.
2. Take an advanced driving course. Most car insurance companies will reward this with lower premiums, you will be a better driver and you will probably have fun while doing the course.
3. The kind of car you drive. 4x4s and sports cars cost more to cover because they are at greater risk of being stolen or hijacked, and some flashy models which are associated with boy racers are expected to crash more often. Other cars may have higher premiums because they are more expensive to repair.
4. The lower your mileage, the lower your premium. So, if you don't drive a lot, or if you drive for short distances, make this clear to your insurance company as it means that you are a lower risk to them.
5. Shop around and compare car insurance quotes. When renewing your car insurance, make sure to get a quote from other insurance companies (you can do this by completing the form on the top left side of our home page). Once you have received the quotes (make sure you are comparing apples to apples – meaning that you have given all companies the same information) ask your existing car insurance company what discount they can give you. Don’t be shy to ask them to match a lower offer from a different company and to threaten that you are changing companies if they don't (p.s.: don't tell anyone, but many of the insurance companies that you know, are actually all owned by the same mother company – see more about this under our "Insurance Companies" category).
6. Keep a good credit history. The longer you have been with the company, and the longer you have had a good credit history with them, the lower your premiums should be.
7. Accident history. A clean accident history is one of the key factors to reducing your insurance premiums (this is referred to as a "no-claims" bonus). In some cases, if you have had an accident and don't have a clean history, you might be able to take out the policy on a different family members name, someone who does have a clean history. This does not prevent you from also driving the car, so long as your policy applies to numerous drivers (specifically named or general).
8. Include your car insurance in your household insurance policy. Separate car insurance quotes are usually more expensive.
9. You might prefer to negotiate a higher excess in exchange for lower premiums. The "excess" is the amount you pay in the event of an accident or theft and can be adjusted based on your monthly proemiums – lower monthly premiums usually equals a higher excess and vice versa. It is important to note, that either way you are required to pay the excess, even if the accident wasn't your fault.
That's it for now. If you found the above "9 ways to reduce your car insurance costs" post useful, and you are about to get car insurance, we suggest that you also read our "Car Insurance Terms and Definitions" page so that you fully understand what you are paying for and what you are getting.
