Are you paying more in car insurance payments than you need to be? This situation is particularly common for young people, who may not yet have established credit or a clean driving record. Yet no matter what your personal circumstances, it’s important to remember that there is a high level of competition amongst car insurance providers. It’s worth taking the time to shop around to find the best rates, rather than simply accepting your renewal quote. Recent options like “black box” policies which monitor your driving are one way to lower rates, as is beefing up car security or taking a defensive driving course. Take a look at the following list for more information about these and other ideas to help reduce insurance premiums.
1. Store car more securely.
Do you use your car for storage and park your car on the street? You are probably paying the price as a result. Clear out your garage to use it for its original intent and you can shave a good percentage off of your premium. Parking on the street increases the risk of theft and weather-related damage.
2. Choose a more insurable vehicle.
If you’re a young driver with a Lamborghini, you can probably afford not to worry too much about insurance rates. Yet it’s not just sports cars that incur higher premiums. Sometimes a small different in engine size can make a world of difference. Compare different models on listings sites like Carsales to see which models are available, and how they differ in terms of safety features and engine size. Switching to a similar model could yield a discount.
3. Sign up for a black box policy.
One of the easiest ways for inexperience drivers to prove themselves to an insurance provider is by signing up for a telematics system. These “black boxes” monitor your driving, through checking your speed and handling ability. They also record the times you drive, so insurers know if you’re driving during dangerous times of day when visibility is poor and how cautious you are. Although it does seem a bit Big Brother, you can save a good deal of money once you’ve proven your driving skills.
4. Use comparison sites.
Shopping around to compare insurance rate is a great way to lower your bills, no matter how old or experienced you are. The car insurance industry is deeply competitive, with many providers trying to undercut one another. However, be sure to compare like-for-like cover as you shop around. You don’t want to settle for a cheaper policy that doesn’t provide adequate coverage. Another factor to keep in mind is that each comparison site only searches a certain percentage of the insurance providers out there, so you’ll have to use several of them to get the full view of what’s available.
5. Add another driver to your policy.
You could potentially lower your rates if you add a family member to the policy, but be sure to list yourself as the primary driver if this is accurate. Many insurers have been cracking down lately on fronting.
6. Drive less.
Finally, if you can stand to spend less time in the car you’ll save not only on insurance but fuel and other running costs. A reduction of 5,000 miles per year could drop the cost of your premium significantly. The type of driving you do will also impact your cover. If you use your car for personal errands rather than commuting, you’ll pay less.