Is car insurance so much important for drivers or car owners? Are you want to reduce car insurance Maximum old drivers realize the importance of car insurance but newer drivers may not understand it. Many newer drivers seem that car insurance is more headache than a benefit. But car insurance protects drivers or car owners from personal liability when accident. Besides this, according to the legal requirement of the country, every car owner must have car insurance. But many times it is become difficult to bear car insurance costs.
15 Tips to Reduce Car Insurance In Your Life
However, car insurance costs are often difficult to bear. Specially car insurance rate comparatively higher for the young and inexperienced drivers. But you can reduce car insurance rate by following some tips.
1. Make a plan
It is important to consider the following things when you make a plan to buy car insurance.
- Select the policy which is the best suit for you
- Think you include any named drivers on your policy or not
- Do you need extra cover when you take your vehicle abroad
- When you rent a car or other vehicle your policy will cover or not
2. Shop around
Vehicle insurance cost varies from company to company. You should collect insurance rates of all insurance companies. Then compare among the rates to select the best rate. You can also contact companies directly or through an insurance broker or you can collect the prize list from the insurance website.
3. Secure your vehicle
Insurance companies often provide discounts for vehicles which have security devices like alarms or immobilisers. But insurance companies mention that which devices they approve. Besides this, you can also reduce the cost of your premium to keep your car in a secure place like a garage rather than out on the street or in your driveway.
4. Control your vehicle’s use
Insurers consider your annual mileage to determine insurance rates. You can also reduce your insurance premium by reducing your overall mileage. The use of a car as a business purpose can increase your premium. But limited use of car, like domestic, social and pleasure purpose only can reduce the cost of your insurance premium.
4. Pay your premium upfront
If you pay your premium annually at the start of your policy period, you can get cheaper insurance premium than paying it in weekly or monthly installments.
5. Drive a lower-powered car
Your vehicle’s engine size and model is one of the important factors to the insurer to determine insurance premium cost. The insurance rates of lower engine capacities are cheaper than high-powered vehicles.
6. Search the deductibles
You can reduce your car insurance premium by increasing deductibles or voluntary deduction. Your premium will be very high if your deductible is zero.
7. Avoid modifications:
Try to abstain any modification in your car. Because if you modify your car, the chance of breaking or stealing your car may be increased. That is why insurance companies determine insurance rates higher for modifies cars. Insurance companies increase insurance rates for the following modifications:
- Sports seats
- Roll bars and roll cages
- Wide wheels
- Body kits and spoilers
- Performance-enhancing mods to the engine
- Altered suspension or uprated brakes
8. Have your own insurance policy
You might be got cheaper insurance rate initially if you be a named driver on your parents’ policy. But when you buy your own car and become a regular driver of your vehicle you will have to buy your own policy. The premium of the first year for a new driver may be excessive. After that when you will start earning your own no claims bonus and that will give you immediately a discount of around 30% on your annual premium ( It depends on your insurance company)
9. Try to keep a clean licence
Driving confidence and record of these points on your licence can increase your premium. So drive safely & carefully and obey the roads law at all times so that you have a clean licence. Because a clean licence makes your insurance affordable.
10. Raise your driving skills
You can complete a driving course from a reputed driving training centre. Because completing a driving course from a reputed driving training centre is a good indicator for determining of improving your driving skills. However, you should be careful about choosing a driving training centre that it will be enlisted in insurance companies. If you completed the driving course you will get a discount from some insurance companies.
11. Buy an ordinary Car for You
Try to avoid buying luxury cars. Suppose if you buy a seven-seat SUV you insurance rates will be raised. Try to buy a smaller vehicle for reducing car insurance rate. When you purchase a car you should not only consider your budget but also consider its fuel and maintenance cost.
Generally, fuel and maintenance cost is lower in smaller, compact or hybrid vehicles. The insurance rate is lower for Low profile cars. Therefore, when you buy a car you should consider how much insurance cost of that car before you make your final decision to buy.
12. Purchase the right Level of Cover
Analyze and choose a cove which matches your car and your needs. You should review your options for finding the right balance and policy that suit your circumstances. In this case, you can compare premium, extras, excess, and inclusions of different insurance companies.
13. Buy Bundle Insurances
You may have health insurance, home insurance or any other type other insurance. If you have insurance other than car insurance and you can buy all insurances with a bundle from one insurance company. In this case, you can get a discount for buying multiple policies from insurance company.
14. Search other discounts
Insurance companies provide discounts for the policyholders who have not any records of accidents in the last few years. If you have a driving course from any reputing driving institute you may get a discount. In the case of young drivers who are good students can get a special discount.
There are a lot of discounts In the insurance market. These are
- Antitheft Devices Discount
- Multi insurance Coverage with the Same Company
- Authentic Driving Courses
- Good Credit Record
- Lower Annual Mileage
- Long-Time Customer
- No Accidents in last 3 Years
- No Violation in last 3 Years
- Student Drivers with Good Marks
15. Change the risky Jobs
Insurance companies often provide discounts for employees who have the riskless. For example, if you do an official job you can get a discount from the insurance companies. So if you do risk a job you should find the secured job and change the job for getting a discount.
Many people seem that Car insurance is an extra expenditure but no car owner can not avoid it. All vehicle owners must have car insurance. It is essential for the safety of both driver and vehicle. But you can reduce car insurance by following some strategy. The combination of all the above-mentioned tips will help you to reduce the cost of your car insurance.