Car insurance is a vital purchase for all motorists. Not only it is a legal requirement, but it can help you save money when repairing a vehicle in the event of an accident. However, many motorists feel they pay too much for car insurance.
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According to a report conducted by Allianz Insurance, one in ten motorists plan to lower the cost of their car insurance in the near future. Motorists who drive regularly are looking into ways to lower the cost of their premiums. The good news is, there are a number of things you can do that will save you money on your car insurance.
Shop Around For the Best Deal
If you are buying car insurance for the first time, you should definitely research a variety of offers, provided by various car insurance companies, to ensure you are receiving the best deal.
Certain companies may offer you a discounted rate for taking out your initial policy with them, while others will give you a quote immediately over the phone or online, in order to secure your business. Be aware of all of your options; don’t allow yourself to be pressured into a quick deal.
Reassess the Drivers on Your Policy
Car insurance companies often charge more, depending on who is registered on the vehicle. For example, men younger than 25 years of age are the drivers deemed most likely to cause accidents.
If you have multiple people listed as drivers on your insurance policy, who are deemed to be a higher risk for the insurance company, you may find your premiums become more expensive. In this instance, it may be beneficial to remove them from your insurance policy, and find a separate policy that will meet their specific needs.
Increase Your Deductible Rate
A car insurance firm will lower the cost of your premiums if you decide to take on more risk in the event of an accident. By increasing your deductible fees for any incident you are involved in, the insurer becomes less likely to pay for repairs after an accident and will thus lower the cost of your policy.
However, you need to decide whether the increased risk you will incur is worth the decreased insurance payment.
Give the Full Details of Your Car
When you are filling-out your car insurance application, make sure you list all safety features installed in your car. If your car has anti-lock brakes, then the insurance company understands it is safer in the event of an accident.
Safety features will reduce the risk assumed by the car insurance company, which will equate to a lower insurance premium for you.
Realize Your Value as a Customer
Although it is a good idea to look at a variety of car insurance companies when you are getting your first insurance policy, once you are insured with a particular company for a number of years, you should evaluate your position as a loyal customer.
Loyalty means a lot to any company, and insurance companies often reward their steady customers for things like being a safe driver, or making timely payments for a number of years. Bringing these attributes to your insurance company’s attention may help reduce your payment.
Think About Your Needs
One important step when purchasing an insurance policy is understanding exactly what is included in your policy.
For example, you can take out collision insurance, which protects you against accidents on the road, or comprehensive insurance, which protects your car against flooding or fire damage. While this additional insurance can provide peace of mind, you may be paying extra for certain types of protection that you simply don’t need.
This may sound like a simple piece of advice, but doing everything you can to avoid accidents can dramatically impact how much you pay for car insurance. Not only does avoiding an accident mean you won’t damage your car, but you can also secure a no claims bonus from most insurance companies.
A few simple changes in driving habits can mean you become safer on the road and less of a risk to the company that insures you. This will allow your car insurance provider to reward you for being a safe driver with a reduced car insurance rate.
Think About Uninsured Drivers
You can usually get an amendment written into your insurance agreement regarding additional protection in the event you are involved in an accident with a driver who does not have any coverage.
However, any such accident would most likely be a collision, which would be covered by your initial collision insurance. Talk to your insurer provider regarding whether this additional form of coverage is really necessary.
CONCLUSION: Car insurance is one of the few expenses that you will have to pay at some point. Although it can seem like car insurance is very expensive, there are a number of things you can do to lower the cost of your policy. Following the above tips will allow you to pay as little as possible for your car insurance, while still providing the comfort of knowing you are insured in the event of an accident.