Car insurance is a necessary evil. Nobody likes to pay for it and we all hope we never have to use it. Nevertheless, if the worst happens and you are involved in a road accident or someone steals your car, then you will be glad you have it. Although auto insurance is expensive, there are a few things you can do to reduce the costs.
Get fully comprehensive insurance
If you are attempting to make savings on your vehicle insurance then it may be tempting to take an insurance plan with a reduced level of cover. However, if you are in an accident and you only have third party liability, then your insurer will not pay to repair or replace your car, leaving you to foot the bill. Given the high cost of car repairs, this could be very expensive. You will also have to find an alternative mode of transport as reduced coverage plans will not provide for a courtesy car while you wait for your car to be repaired. So, although it may seem cheaper due to the reduced monthly premiums, it just isn?t worth the risk to forgo fully comprehensive cover, and could end up being extremely expensive.
Change insurer regularly
Many drivers miss out on savings because they stick with their insurer year after year and buy the same policy when it comes up for renewal. By shopping around you can take advantage of the incentives that insurers regularly offer in order to attract new customers. These can include free roadside assistance or breakdown cover and discounts on other insurance services such as home insurance.
Negotiate a price
In order to retain customers, insurers will usually be prepared to negotiate the price of your coverage plan, especially if you have received a cheaper quote from one of their rivals. It is worth contacting your current insurer to see if they will match the offer of a competitor or offer you a better deal so that you will stay with them.
Limit your mileage
If you do not use your car very often or only make short journeys, then you could save money on your car insurance by adding a limited mileage clause to your coverage plan. If, during the course of the year, you think that you will exceed the distance agreed upon then all you have to do is contact your insurer and extend the distance allowance.
Raise your deductible excess payment amount
If you are a careful driver and do not expect to make a claim, then you could get cheaper premiums by agreeing to a larger deductible excess payment amount. This means that if you are involved in an accident you will have to make a larger contribution towards repairs before the insurance company will release any payments.
Pay annually
It is usually cheaper to make a full years payment up front than to pay in monthly installments. You also have peace of mind knowing that your coverage is taken care of and do not have to worry about missing a payment due to a bank error and not being covered.
Drive carefully
Drivers that take care to avoid being involved in accidents make fewer claims on their auto insurance. As a result, they can build up their no claims bonus and benefit from discounted rates. It pays to be a careful driver.
Drive a smaller car
Smaller cars have less powerful engines and insurers consider them to be at reduced risk of being involved in collisions. They are typically cheaper and cost less to replace than larger cars if they are damaged beyond repair or stolen. If you intend to buy a new car soon then you should consider how your choice will affect the price of your insurance.
Change your job title
When you apply for vehicle insurance, one of the ways that the insurer assesses your potential risk is to ask what you do for a living. Depending on what answer you give you can get a higher or lower quote. If you have a job that could be described in different ways then you could take advantage of this. For example, if you are a secretary, you may find that you can get a slightly lower price of you describe yourself as an office worker. It is worth giving yourself a slightly different job title on comparison websites to see if you can get a cheaper quote.
Park in a garage
The most expensive claims for insurers to deal with are the replacement of a stolen car. By parking in a garage, you become much less likely to be a victim of theft and consequently benefit from reduced insurance premiums. So, if you have a garage, make sure you use it.
As you can see, there are several things that you can do in order to reduce the costs of your auto insurance without sacrificing your level of coverage. By shopping around, you can take advantage of promotions for new customers and make savings on other vehicle or insurance products, and by making a few small changes to your driving habits you can present yourself as a less risky proposition to insurance companies. Now that you know how to make savings on your car insurance, you will have more money available to spend on the things that you like.
Tags: auto insurance, car insurance, car insurance tips, motor insurance, vehicle insurance
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