Every year the motor insurance industry keeps on increasing their premium. However, there ways you can cut down on your motor insurance costs.
If you are looking to buy a car or renew your policy, here are some tips to reduce your insurance cost.
1. Look for Different Options
This rule applies to any purchase you want to make. Always look around before you go with one company. This is because every insurance company will offer you a different premium.
However, one thing you should remember here is that just because a company’s insurance is cheap, it doesn’t necessarily mean it’s good. You should also consider if the insurance company is credible enough to pay your claims.
Insurance advisor from theAA suggests combining insurance policies from the same company if you take out multiple insurance policies in a year to reduce your cost drastically.
Comparing quotes can reduce your cost rather than just sticking to one company without looking at other options.
2. Always Track Your Mileage
The higher your mileage, the higher your insurance premium. This is why consider how many miles you drive annually. Be honest in this because underestimating the value can jeopardise your claim.
On the other hand, overestimating means overpaying and this will increase your cost. So, keep track of your mileage and give an accurate figure to keep the cost minimum
3. Get a Cost-Effective but Comfortable Car
The bigger and more expensive your car, the higher the premium. If you don’t need a big car then it doesn’t make sense to spend money on the cost and the insurance.
Instead, you can get a small but comfortable car that fulfils all your needs. This way you will save a significant amount of insurance premium. Do remember to check the premiums of different cars before you buy one.
4. Have a Good Credit Rating
Yes, you may be shocked to hear this but insurance companies do check your credit rating. They take this into account when calculating a premium for you.
The aim is to keep your credit rating high so your motor insurance costs can be low. Your credit rating depicts how trustworthy and responsible you are.
This is why if it is high then insurance companies will think that you won’t cost them much in claims and this way they will keep your premium low.
5. Ask For Discounts Being Offered
It doesn’t hurt to ask. Many insurance companies offer discounts that you may know nothing about until you ask. They offer discounts to college students, senior citizens, loyalty discounts, and much more.
Whatever insurance company you choose, always ask them if you qualify for any discounts. If you do, then this can significantly reduce your cost!
6. Opt For A Pay-As-You-Go Option
This is something that many insurance companies offer but a few people know about it. Pay-as-you-go is when you let the insurance company monitor your driving behaviour.
This includes minor details such as your miles, time of driving, and your ability to drive well. Many insurers have this program and you get a discount if you complete certain miles or drive safely and other things like that.
So be sure to check out if the insurers you are opting for have such a program.
7. Try to Boost Your Deductibles
A general rule of thumb is that the higher the deductible, the lower your premium will be and vice versa. While shopping for your motor insurance, you can choose the deductible you want.
However, you must ask your insurance company how the deductible will affect the overall premium. Make your decision according to that. Most companies reduce premium when deductibles are high.
8. Maintain a Good Track Record of Driving
The better and safe driver you are the lower your motor insurance costs will be. Your driving record reflects your violations and incidents you have been. If you have a bad track record then your premium will be high.
This is because the insurance company will know that you will cost their company more judging from your record. So, you must drive safely at all times.
9. Review Your Policy and Coverage
We don’t plan on being involved in an accident, they just happen. However, if you are taking coverage for things that are highly unlikely to happen then you are paying money for no reason.
This is why it is important to choose your coverage and policies wisely so you can save money in the long run.
10. Take the Help of An Agent
There are many things about insurance companies that you won’t know but an insurance agent will. If you want to save costs then it is wise to talk to an agent who can tell you the pricing and discounts for many companies.
11. Take a Relevant Driving Course
Many companies provide discounts to people who have taken accident prevention or defensive driving course. However, be sure to ask the company you choose if they even offer such a discount before you decide to take a course.
This way you won’t be wasting money on a course that provides you with no benefit.
There are many other ways to cut your motor insurance costs. However, these are our top eleven picks. You can easily reduce the cost by following these guidelines as they don’t require much time and effort to achieve.