When you are calculating the cost of car ownership, it’s important not to forget the toll that car insurance premiums can take. Next to petrol and maintenance, this ranks as one of the major expenses that you will need to pay over time. Part of what makes insurance unique is that it won’t be the same for everybody, and the price will vary quite a bit between drivers. Depending on your life circumstances and the type of car you drive, you may pay as much as double what your neighbour does. One of the best ways to find a lower car insurance rate is to compare your options carefully and shop around for the best deal. However, the following are a few additional ways to cut costs.
Use a Single Insurance Company
If you already are happy with your home, medical, or other type of insurance provider, it may be worthwhile to group all of your policies at a single provider. This could garner you a discount, although you’ll still want to shop around to be sure.
Avoid Monthly Payments
Paying your insurance fees up front can save you a bundle on interest rates. If you can’t afford to pay the large bill, you can always put it on a credit card with a lower interest rate and pay it off quickly. Monthly billing can involve administrative fees in addition to interest, so be sure that you look at all of your financing options.
Make your Car more Secure
If you can reduce your chances of your car being vandalized or stolen, you can also reduce your insurance bills. Read up on car news with Motoring to find out about the latest car safety features, including high-tech alarms, tracking devices, and immobilisers. With this information in hand, ask your insurance provider which are approved and install them for a discount.
Think Carefully before Adding Drivers to Policy
Be careful when you add additional drivers to your policy, because their driving records and statistical risk will factor into your premium. This is particularly true with younger drivers, who are more difficult to insure. If your teen will not be driving your car, there’s no need to put him or her on the policy.
Don’t be Afraid to Bargain
All you have to do is take a quick look at the variety in insurance providers out there to realise that the car insurance business is ruthlessly competitive. You can use this to your advantage. After you take the time to shop around and compare policies and prices, you could use the cheapest deals as bargaining tools with other providers.
Skip the Extras
Many insurance policies will come fully loaded with extra coverage that you may or may not need. Before signing a contract, read all of the fine print carefully in order to ensure that you’re not paying for unwanted extras. These could include car rental coverage, roadside assistance, or medical costs that are already covered by your health insurance policy. Improving your credit score and keeping an impeccable driving record certainly won’t hurt your case either. By comparing all of your options and shopping around for bargains, you can significantly reduce the cost of your insurance payments.
(Photo courtesy of andrew steinmetz)