Even the most careful drivers are facing increasing car insurance premiums, causing many to consider selling their vehicles and carpooling or using public transportation instead.
Taking such drastic measures is unnecessary because there are several easy ways to reduce car insurance expenses.
By following these tips, drivers can keep their cars on the road without taking a huge dent out of their household budgets.
Negotiate with Insurance Providers
When a car insurance bill arrives and the new premium is eye-popping, contact the insurer to negotiate. The provider may be willing to lower the rate or add extra services to make the premium more justifiable.
Many drivers prefer to stay with their current insurers and this is one way to do it. If they have been loyal customers for years, they may have some leverage with their insurance carriers. However, there are no guarantees, making the next step a possibility.
Comparison-Shop for Lower Premiums
There is no requirement to stay with a car insurance company so do not be afraid to shop around for a lower rate. Use auto insurance comparison websites and contact other insurance providers directly to get premium quotes. Ask how the company calculates premiums and use this information to decrease rates.
Adding a second named driver to a policy may lower the premium but choose this person wisely. Parents should not list themselves as the main drivers on insurance policies for teens because this could invalidate the cover.
Though it goes against common logic, a reduced level of insurance may cost more money. Plain third party sometimes costs more than third party fire or comprehensive cover. Some drivers who select third party cover are less careful with their cars and actuaries factor this into the insurance premium.
The gender equalization ruling from the European Court of Justice leveled the playing field for men and women regarding car insurance premiums. This may make it less expensive for men to change providers mid-term. However, drivers should always factor in switching penalties before making a move.
Though unemployment may have a negative effect on car insurance premiums, different jobs have different impacts on rates. For example, a writer may receive a lower premium than a journalist may. Where the car is kept can also affect premiums.
Parking in a private driveway or garage typically equates to lower premiums than parking in community lot or on the street. Providers may even charge more to insure cars parked on inner city streets than those parked in rural locations. Drivers who are students should consider leaving their cars home if attending a city-based university.
Think Twice About Vehicle Modifications
00pModifying a car may make it look or perform better but this can also increase insurance premiums. A vehicle with a high price tag or a large engine typically has higher insurance rates than a less expensive version with a smaller engine. Increasing the excess, which is the amount paid when a claim is filed, can reduce the rate if getting a less powerful, less expensive car is undesirable.
Adding an alarm, immobiliser, or tracking device to the vehicle can lower rates if an accredited version is selected. Vehicle telematics involves installing a box to measure driving quality. This small device measures acceleration, breaking speed, cornering, and speed time. Wired into the car, it transmits data to the insurance provider to use when determining insurance rates.
Drivers with no-claims discounts for several consecutive years should consider protecting this to secure the percentage discount for premiums. All drivers should operate their vehicles with safety in mind because motor vehicle offences increase insurance premiums. By following these tips, drivers can keep more cash in their wallets.