Explore Top 10 Tips to Save Big on Car Insurance
If you are shopping for car insurance, then there are many ideas that you can use to save your money. Shopping for car insurance depends on various critical factors that may influence your budget. For instance, these factors include records of previous claims, age, gender, and more. However, there are a lot of ways that you can use to get the best car insurance at an economical price. Here, we have discussed top ten tips that will help you in getting car insurance at the best possible rate.
1. Make a Price Comparison
First of all, you need to compare the prices of different policies that are offered by different insurance companies. Some companies have high insurance rates while others offer cheaper premiums on car insurance. Car insurance premiums entirely depend on various aspects such as car’s price, the expense to repair it, the possibility of theft, and the overall safety record. Many insurance companies offer discounts for the factors that reduce the risks for the personal injuries, car theft, and for those buyers that ensure the safety of the cars. Besides, insurers have different premium plans for new and old cars so research this factor and compare prices before buying car insurance.
2. Add Experienced Driver
If you add a young or inexperienced driver to your policy, you may get higher rates. It is highly uneconomical if you own a high-powered car or large vehicle. Adding an experienced driver on your policy would lead to lower rates as many insurers cut the price of a policy that includes a more experienced driver. Moreover, a younger driver will affect the premium as he or she may not have a no-claim bonus on the policy. On the other hand, insurance companies frequently crack down on fronting where parents insure the cars in their names for children to reduce the policy costs. Therefore, you are the main driver if you are a policyholder on a car that is actually driven by your children. So, declare otherwise in your policy.
3. Accept Higher Excess
Insurers will lower the premium rates if you agree to pay more towards the expense in case any accidents happen. This voluntary excess can be recovered if you have no fault in the car accident. Before accepting a higher excess, you should keep in mind the value of your car as insurers temp to rise too high. So be sure that you can easily afford the amount of voluntary excess you agree.
4. Ensure Car Safety
One of the significant ways to save big on car insurance is the safety of your car. Cars that are parked safely are less likely to involve in an accident. If you have a garage, then use it to park your car, if not then park your car off safely on the street. Insurance companies always like cars that are kept in garages overnight, and this can greatly cut down the premiums. Keeping a car on the road pose higher risks of theft, so keeping it safe in your garage will qualify you for the cheaper premiums.
5. Drive Cautiously
If you have no claims or convictions during your driving, then chances are higher that you can get a cheaper premium. The benefit of careful driving will be reflected in your policy.
6. Get a Black Box
Having a ‘Black box’ installed in the car will significantly lower the premiums especially for the younger drivers. Black box policies involve the installation of a telematics device in your car to monitor your driving. Insurers also reward those drivers who drive carefully. The Black box will check your speed, the aggressiveness in your acceleration and brake time, and your careful driving. Once you start proving your cautious driving skills, insurers can cut premiums substantially. This is the biggest win for the young drivers that can benefit from a pay-as-you-drive policy. But the main drawback of this policy is that premium can rise or fall depending on your driving skills. Also, some car insurance companies offer upfront discounts at telematics policy.
7. Don’t Go for Pompous Modifications
If you are thinking of having modifications in your car to get a pompous look, then you may not have reductions in your premiums. Modifications may impress the pedestrians and passenger, but insurers will have a hard look on your car. Adding alloy wheels or body kits on your means a higher premium. Beware and do not pimp your ride as it will cost you more.
8. Reduce Mileage
In the car insurance business, reduce mileage is equal to greater savings. You will get a lower policy if you tell your insurers that you will be driving a few miles a year. For instance, a decrease in yearly mileage of 5,000 miles could save a distinctive 35-year-old driver about £50 per year in his premiums. A reduction of 10,000 miles a year could save over £100. But you must be honest and do not lie about your annual mileage as doing so will jeopardize your claim. Since car usage can cost you a lot of money in your policy, you can use cover to save money on this. For example, if you do not use a car for your business or drive to work, your premium may go down.
9. Don’t accept Auto-Renewal
One of the essential aspects one always should take care of is the ‘auto-renewal’ policy. Various car insurance companies tempt drivers to go for the auto-renew feature, but this can be expensive. By having ‘auto-renewal’ feature on your policy means that you not only miss a better price from your existing insurer in the upcoming year but the best policy from other insurers. Thus, do not allow insurers to roll over for the next year simply.
10. Pay Full Cost At Once
If you pay the whole upfront cost in one go, you can save on your car insurance. You will pay interest on the full amount if you choose to pay your premium monthly. Sometimes you may pay extra on your premium by paying monthly, so pay at once if you can to save money.