The Price of Car Insurance
There are a wide range of factors that insurance companies consider when they price your policy such as your age, gender, address, and car. Although you can’t do much about where you live, or what age and gender you are, there are a number of other things you can still do to bring down the costs of your car insurance.Your car can save you money on your insurance premium
Remember that the maximum amount an insurer will pay out on a claim is up to the agreed/market value of your car. This means that what type of car you have and how you use it can save you money.- Cheap cars mean cheaper insurance because the value that your car is insured for is the most the insurer will pay out.
- Some cars are more attractive to thieves than others and because they are more likely to be stolen they will cost more to insure.
- Cars with modifications are more expensive to insure because their risk or value is harder to determine. Also modifications that enhance the car’s performance increase the likelihood of an accident or make them more attractive to thieves.
- Imported or unique cars will cost more to cover because their cost of repair tends to be higher especially if parts are harder to find or must be imported.
- Mileage can affect your costs because if you don’t drive your car very often you are minimizing your risks of collision and thus claims. As a result you should be able to get a cheaper price on insurance.
Reduce my car insurance premium by reducing risk
As your policy is priced on the perceived risk of insuring you and your car it makes sense to do all you can to minimize this risk and in turn reduce your premium. Secure parking will reduce the risk of theft, vandalism, flood, and storm damage claims. A good driving record reduces the risk of you making a claim. Safety and security devices installed will also reduce the risk of theft and damage.Claim your discounts
Insurers will often reward you for your good driving records as well as experience on the road. Some insurers also provide a discount for taking defensive or advanced driving courses. Other discounts available include bundling policy discounts, Eco-friendly discounts, family discounts and loyalty discounts.Shop around online for car insurance quotes
There are numerous factors affecting the cost of your car insurance that the only way you are going to get the best deal is to shop around. Even though most insurers use similar risk factors to price their policies, an insurer’s own experience with a vehicle model or demographic also plays a part in their pricing. For example if they have paid out more claims on a type of vehicle they may apply a higher risk factor to that vehicle than the next insurer would.Don’t just renew your policy, read it and compare it because if your situation has changed, you may be able to find a cheaper policy elsewhere. If you don’t have the time or patience to call around and be asked to hold, comparing car insurance quotes online is an alternative that is time efficient, and of course, we have that service ready for you right here!
Others ways to save
- Pay your premiums annually. The option of paying in installments comes at a cost so if possible pay your premiums in a lump sum.
- Adding other drivers to your policy may be expensive. If you have young drivers in your family you may consider letting them buy their own policy, after all they will need to start their earning their driver rating at some point.
- Increasing your excess will also reduce your premium.
- Don’t add extras that you don’t need
0 comments:
Post a Comment