Car Insurance Tips
Have you noticed that car insurance premiums are on the increase? I mean, everything is getting more and more expensive these days, but some things do appear to shoot up a little faster than others – especially for new or young drivers. How are young drivers supposed to ever afford can insurance these days?
Of course, the problem is with this vicious circle, that many young drivers can’t afford insurance and actually drive without it, have accidents without it which of course increases the premiums for those who do pay. It seems so unfair but it’s the way of the world. Wow, I didn’t mean to get so gloomy, I know, let’s look at ways we can all actually save money on our car insurance – that should help.
21 Car Insurance Tips to Save Money
1. Shop around – even if you’ve had the same policy with the same company for the same car for a few years, you still might be able to save yourself a few dollars by swapping to another company. There are loads of car insurance price comparison websites these days so it’s really simple, you only have to enter your details once and they’ll check out the prices at many of the major car insurance companies. Try a site like car insurance to find low rates. Check it out, you just might be able to save yourself a few bucks.
2. Choose your vehicle wisely – I know we all fancy ourselves in a sporty little number, the trouble is, so do lots of car thieves. If your car is more likely to be stolen, expensive to fix or highly powered making it a little more “hot to handle” then you’ll pay more for your insurance – it stands to reason. The Highway Loss Data Institute has all of the relevant information on different makes and models of car. Great resources for selecting a car include: Consumer Reports and the Insurance Institute for Highway Safety (IIHS)
3. Increase your deductibles – by increasing your deductible (i.e. you’ll have to pay more from your own pocket before the insurer has to pay out in case of any claim for injury or damage) then your premiums will automatically go down. Of course, you need to balance this carefully, just remember that if you do need to claim you won’t be able to get as much. Work out what the maximum deductible you are able (or willing) to pay and go from there.
4. Low mileage discount – some insurance companies will offer a discount if you only use your car sparingly. Stands to reason really, the less you drive the less chance there is of being involved in an accident. Low mileage discounts really can help, so if you live close to your work why not walk sometimes, use public transport or car share. Every little helps.
5. Be a careful driver – careful drivers with a clean driving record pay less for their car insurance because they pose less of a risk. I know it’s not something which can happen overnight, but it can help in the long run if you drive carefully.
6. Discounts – ask at your insurance company if they offer discounts for vehicles which are fitted with anti-theft devices, air-bags, anti-lock brakes etc. The more safe and secure your vehicle is, the less likely you are going to need to make a claim.
7. Parking – some insurance companies will offer a discount if your car is garaged over night. This increases the chances of it still being where you parked it the next morning, especially in some neighborhoods. Ask the questions, you never know.
8. Consolidate your insurance policies – some insurance companies offer cheaper rates if they get to handle all of your insurance business, so by lumping together any household, health and personal insurance policies within the same company, you might just be able to save a few dollars.
9. Multiple car policies – many households have more than one car these days, and some insurance companies actually offer reduced rates if they are all insured together – sounds cozy doesn’t it?
10. Advanced or Defensive drivers classes – are available and are specially handy for young drivers or those who haven’t had their drivers license for very long. If you prove that you are a capable driver by passing an advanced course you may find that your insurance premiums are reduced a little.
11. Study hard – still on the subject of young drivers, some insurance companies offer reduced rates for hard workers – students who really study and get good grades – often a minimum of B’s – show what sort of person they are and can be rewarded.
12. Get married – this is specifically for all of you young male drivers out there. I know it sounds a bit drastic and I’m not for one minute suggesting that reducing your car insurance premiums is a good enough reason to get married, but you will often find that young married men pose less of a risk as far as insurance companies are concerned than the single variety, and their premiums are consequently often a bit lower.
13. Pay Upfront – this might not be an option for you, but you will pay a premium for your premium if you opt for a monthly payment scheme. If you can afford to pay the whole lot in one lump, do so and save some cash.
14. Old car collision coverage – you might find that the collision cover on your old car is simply not worth it. If you do have an accident and damage your car you will only be reimbursed for the value at the time of the accident, so if it’s pretty old and not worth much it might be cost effective to remove the collision cover completely and save a bundle of cash.
15. Don’t accept a renewal quote – I know this is similar to how we started at number one, but don’t assume that your renewal will be the best price for you. Insurance companies are in business to make money, not to be your best friend. Newer companies might offer you big discounts to get your business, of course, if you’re happy with your present insurance company you can always give them the opportunity of matching the price.
16. Don’t make small claims – don’t claim for every little scratch and dent, it will only increase your premiums for the following year. It’s crazy isn’t it, the way to cheaper insurance is not to use it.
17. Change your job – this is a bit like the getting married suggestion. I’m not suggesting that you should change your job to decrease your car insurance, but certain jobs do carry more favor with insurance companies. They’re not keen on journalists, sales reps or estate agents apparently. By re-wording your job description you might save a little – sshhhh, I didn’t say that.
18. No pimping – this is nothing to do with the change of occupation! I mean “pimp your ride” or customize your vehicle, leave it standard for the cheapest insurance premiums, I know it’s a bit boring but that’s just how it is. Actually, some insurance policies won’t even pay out if your vehicle isn’t standard, they look for any excuse they can.
19. Additional drivers – this is a bit of surprising one, but sometimes you can actually reduce your car insurance premiums by adding another driver to the policy, especially if this driver has a long, clean, safe driving record – Mum!!!
20. Buy a new car – Go to an online car buying site like Auto Trader and purchase a car that costs less to insure
You can buy motorcycle insurance for your favorite hog, trike or motorbike.