7 Ways to Reduce Your Car Insurance Premium
Are you spending more on your car insurance than needed? If so, you’re not alone. According to a recent study, Australians spend more than $3 billion on unneeded comprehensive car insurance. Here are some tips to help you keep more money in your wallet by keeping the cost of your car insurance down:
1. Know Which Coverage is Best For You
There are four basic types of car insurance coverage. Be sure you’re aware of which coverage is best for your needs and your wallet.
Compulsory: Required by law. You pay for this type of coverage when you register your car. It covers costs of injury and death to others.
Third Party Property Insurance: Covers damage your car causes to other people’s property.
Third Party, Fire & Theft Insurance: Covers damage to your car by fire, loss or damage of your car by theft, and damage your car causes to other people’s property.
Comprehensive Insurance: Most expensive type of insurance, but provides most extensive form of coverage. Covers theft, and cost of damage to your car and other people’s property in the event of an accident.
2. Think About Insurance Before You Buy Your Car
Your car insurance rates may be higher depending on the type of car you buy. In general, the faster your car goes, the higher your insurance premium is likely to be. Also, if you purchase your car through a car finance company, remember that conditions of finance may require you to maintain a certain type of insurance coverage.
Be aware of their requirements before you purchase your car. Your car dealer may also offer to put together a policy for you. Remember, your car dealer may be able to easily offer you the best price on your car. But he may not be able to offer you the best deal on your car insurance. Usually car dealers can only offer you insurance with one insurer. Always be sure you’re getting the best price on insurance before you sign the dotted line.
3. Be a Safe Driver
Being a good driver isn’t just the right thing to do. It can also save you money. Usually, having a safe driving record, with a no claim history means that you pay lower insurance rates.
4. Age Makes a Difference
Here’s a fact about car insurance costs that you can’t help, but should be aware of: How old you are usually impacts the cost of how much insurance you pay. A male driver under the age of 25 is going to typically pay higher insurance premiums than a female driver over the age of 40.
5. Other Factors That Affect Your Insurance
Also, you may end up paying more or less for your car insurance depending on where you live and where you park your car. Bundling several types of insurance into one package with a single insurer can save you money, while purchasing additional insurance options (such as coverage for a rental car) can drive your overall costs even higher.
6. Be Sure to Shop Around
Car insurance is big business. Always shop around for the best price and deal for your car. Once you know which type of coverage is best for you, always request a quote from at least three difference car insurance companies. Insurance quotes are easy through the internet.
But don’t forget that your local car insurance agency may be able to offer you a better deal and more personal customer service. Call for an appointment and see what they can offer. Ask your friends, family, and co-workers about their car insurance coverage. Word of mouth is often the best form of advertising.
7. Know the Difference Between the Premium and the Excess
Two very important costs to be aware of when purchasing car insurance are the premium and the excess.
The Premium is the amount of money you must pay each month to maintain your car insurance coverage.
The Excess is the amount of money you must pay yourself once you make a claim.
Paying a higher insurance premium usually means you pay a lower excess amount. Paying a lower insurance premium usually means you pay a higher excess amount.
One of the best ways to be sure you’re saving money is to be certain about what you’re buying. Car insurance premiums are a mandated reality. But be knowledgeable about your policy, and what you’re paying for. Read your insurance information from cover to cover so that you know what’s excluded, as well as what’s included. Cover may vary from insurer to insurer.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
