Nobody wants to pay more for their car insurance than they have to. Yet insurance often seems too complicated or confusing to do much about. In fact, there are many simple things you can do to lower (or even increase!) the cost of your car insurance.
The number one way to save on car insurance is to be a good driver. Insurers will penalize you for accidents, violations of traffic laws, or for making a claim on insurance in the past. Anything in your driving record that suggests you are less than law-abiding, and occasionally reckless about speeding, will push up your premiums. So be a safe driver, and it’s a safe bet your premiums will start to drop.
While your insurer is not your best friend, it helps to build a business relationship with the same one. For example, many insurers will give discounts on motor insurance if you have other types of insurance, such as household cover.
Some insurers offer a loyalty discount if other family members have a policy, or if you introduce friends and family. Others offer a discount to reward members of specific community groups. You may pay less if you drive only short distances on average. It is worth finding out what kinds of discounts are available when you decide to stay with one insurer.
Sometimes the most appealing vehicles are not the cheapest to insure. The current craze for large and thirsty SUVs has led to a nasty increase in premiums for many an owner. It may be cheaper to insure a small, reliable commuter car, though less exciting perhaps. Owners of electric or hybrid vehicles may also get lower premiums, though it’s still early days.
Cars with advanced driver assistance systems (ADAS) like adaptive cruise control or emergency brakes may also attract lower premiums. But insurers don’t yet have enough information about their safety to assess the risk. Finally, see if there is a discount for installing an anti-theft device or even a black box, to measure how well you drive.
It may seem obvious, but it always helps to shop around. Many websites help you compare the costs and coverage of different types of motor insurance. For example, greenslips.com.au has a calculator to help Australian drivers find the cheapest compulsory third party insurance.
It is also worth comparing the coverage offered by comprehensive insurance because all policies are not the same. See whether you need all the coverage that is provided and negotiate to leave out any items that don’t apply to you.
There are different ways to reduce your premiums, but these are not quite as simple. You could move house to a location where the risks of driving are lower. You could improve your credit rating by paying all your bills and on time. Or you could wait patiently for your (pricey) teen driver to grow up. Then again, if you really want to lower the cost of your insurance, you could take a bus.
If you are interested in even more lifestyle-related articles and information from us here at Bit Rebels then we have a lot to choose from.
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