Car insurance can take up a considerable amount from your pocket or the budget you set aside for your car and its maintenance, since premiums can be quite high. However, there are a few handy tips that can save you from spending a hefty sum on car insurance and its premiums.
Tips to save money on car insurance
- Look around for all the available deals
Most of us just renew the existing insurance policy each year without as much as considering looking for another provider or even comparing quotes. Studies reveal that approximately one third of the existing premium paid annually can be saved by car owners if they shop around to check all the available policies and pocket friendly deals. You have to shop around while searching for Used Car Finance. Similarly, for your used car insurance you need to search, shortlist and then choose the right provider.
- Set a limit on the number of drivers allowed to drive the vehicle
The greater the number of drivers using the car, the insurance premium will be directly proportional, that is on the higher side. The premium for young drivers is especially high since they are considered to drive recklessly. So when youngsters get their own car, remember that apart from getting their own insurance, they are cut-off from the policy for the family car they used to drive, thus lowering the premium.
- Try to request for the excess amount to be higher
An excess is the amount that the car owner has to pay in case the car needs repairs and a claim is made for the same. The excess refers to the excess amount to be paid by the car owner towards the repairs. If this excess cost is set relatively higher then the insurance premium costs will automatically be lowered.
- Avoid using the car to travel to work
The insurance policy where it is specified that the car is used only for “social, domestic and pleasure” purposes, the subsequent premium is the cheapest for these policies.
- Say ‘yes’ to a predefined mileage cap
This is especially helpful for when there are more than one car in the household. Setting a limit on the mileage means predetermining an annual mileage that the car will cover (equal to or less than). This cap on mileage means that the particular car will be driven less often, thus a lower premium applies. For instance, if the annual mileage is set at 12,000 miles, the discount applicable on the premium is approximately five to ten percent. If the mileage cap is 5,000 miles annually, then the premium will be even lower.
- Avoid buying insurance through brokers
Purchasing an insurance policy via intermediaries significantly increases the cost of the policy by close to thirty percent.
- Purchase the policy online
For direct online purchases of the insurance policy, the providers offer a five percent discount automatically.
- Purchase a downsized car
Downsized cars, which have a smaller engine and cost much less too, qualify for one of the lower bands for insurance. Subsequently the premium is also low for such cars.
- Park the car in a garage
Parking the car in a drive or within a garage is safer as compared to parking on the road and thus this practice reduces the premium by approximately five to ten percent.
- Get a black box fitted
A black box records how you are driving the vehicle and thus the insurers can find out if you are a rash driver or a careful one and can reward careful driving with certain rewards. Young drivers can even agree for curfews that put a limit the time of day the youngsters can drive the car.
- Get certified for your driving skills
A certificate or passing the Pass Plus test or similar driving qualifications can lower the premium costs.
These are some rules to follow in order to lower the premiums and save up on insurance.