Car insurance is one of the largest cost factors of driving your own car. You need sufficient car insurance coverage to be able to drive on the road. Fortunately, the covers you get in return of the insurance premium are valuable. They help protect you from the (financial) risks of driving for the annual premium you pay.
Even better, you can take steps to further reduce your annual car insurance premium. These next several tips and tricks will guide you through the steps you can take to lower your car insurance premium while still maintaining the coverage you need. Let’s have a look, shall we?
Shop Around and Compare
The easiest thing you can do to lower your auto insurance premium is, well, comparing insurance deals. There are more insurance companies offering their policies and deals, which means finding one that suits you perfectly is easier than ever.
You can use aggregation tools and insurance comparison websites to get quotes from multiple insurance companies in one click. Once the quotes are in, you can easily see the best insurance deals to look into further.
Don’t just compare insurance policies based on their premiums. You also need to take into account the coverage types and amount you get, along with added services included in the policies. Some car insurance companies even offer advanced roadside assistance as part of the deal.
Ask for a Detailed Quote
Getting quotes only lets you compare insurance deals quickly, but you don’t have to settle for the deals you get once you narrow down your options. It is actually a good idea to take the time and contact insurance companies directly for better quotes.
While you are at it, mention that you are comparing car insurance and make sure you ask for an additional discount. If you made changes to your car – which we will get to in a bit – you can also explain them to lower your insurance premium further.
Secure Your Car Better
There are things you can do to secure your car better. Most modern cars come with a security system already built into the in-car electrical system, so you don’t need to buy a separate alarm for your car. That said, you can still take steps to secure your car.
Having a secure garage to park your car is a huge plus. This will help lower your insurance premium by a substantial margin. The same can be said for parking in areas with CCTV and proper security systems, especially if you drive your car to work.
Manage Your Mileage
Speaking of driving the car to work, you can also lower your insurance premium by limiting the use of the car itself. Rather than using the car for everything, you can set a lower annual mileage limit to further save on your car insurance premium.
You don’t have to resort to the minimum mileage amount at all; in fact, you shouldn’t. The goal here is to find that sweet spot between convenience – and having the ability to drive your car whenever you need to – and an affordable insurance premium.
Check Your Credit
Reviewing your credit history before buying new insurance policies is something worth doing for two reasons. First of all, your credit score affects your insurance premium in more ways than you realize. Insurance companies use credit history as one of the ways to measure your risk factor.
The reduction applies to all of your insurance policies too, so you know that taking the necessary steps to improve your score is worth it. Not only will you save on the car insurance premium, you can start saving on other insurance policies you use as well.
You even have more options when it comes to improving your credit score in a short amount of time. Consolidating multiple unsecured debts, making payment arrangements to settle the smaller loans and remove them from your history, and sticking with payment deadlines are some of the things you can do right away.
Improve Your Driving
Of course, you cannot lower your car insurance premium effectively without improving your driving. Taking Pass Plus courses or qualifying for a safety driving certificate helps lower your insurance premium by up to 10%.
The same can be said for keeping a clean driving record. Don’t just get the safety driving certificate for the sake of lowering your car insurance premium. Practice safe driving at all times and you can continue to lower your auto insurance premium over time.
That brings us to our last tip, which is….
Use the No-Claim Bonus
The longer you go without filing for an insurance claim, the bigger your no-claim bonus will be. This bonus alone can cut your insurance premium by several hundred pounds; you know it is the bonus worth pursuing in any case.
To complete our list of tips, here is one more thing to keep in mind: always understand the policy thoroughly. Combined with the other tips we discussed in this article, you can easily get the car insurance coverage you need without breaking the bank.Continue Reading