There are many ways to lower a car insurance premium and some of them are within our control. The obvious would be to drive our car with the maximum amount of care as if it were a Rolls Royce chauffeuring royalty, but that is just the start. During this article, we will look to consider the separate ways that insurance premiums are reduced with motor vehicle insurance.
Opt for a Higher Excess
It is our choice whether to increase the excess that we would pay in case of a fault claim. This will, of course, be on top of any compulsory excess that is paid. This can already be higher where young drivers are concerned. This possibility to increase an excess will make auto insurance premiums affordable for more people.
Protect Your No Claims Bonus to Keep Future Premiums Low
For a small amount of extra insurance premium, you can protect your no claims bonus in the event of a certain number of “at fault” accidents. This means that your no claims bonus would remain unaffected in these circumstances and that you would still receive the discount off your premium. If you have 4 or 5 years, it is well worth protecting in the event of an accident where you are blamed for the damage and so your insurer has to foot the bill.
It is never worth losing a lot of bonuses for the sake of one accident and so it could be good advice to protect your no claims bonus unless on a very tight budget. It can mean that you end up lowering your future insurance costs.
Not many people change their job for a lower insurance premium, but if you did it could be a way to lower your insurance premium. It has to be a financial consideration if you are changing your job for more money and then end up in a job that in effect makes you no better off when higher insurance premiums are considered.
It makes sense to think about how our job affects our insurance premium when we are looking at the wider financial picture in terms of cost-saving and household budgeting.
It is more important to find cheaper insurance when there are young drivers to add. In this instance, shop around.
Think carefully, though, about adding young drivers to your auto insurance policy. You have to weigh up here whether it is more cost-effective to have them on your policy or make a start as a policyholder in their own right. There are pros and cons to this.
It is likely more costly for sons or daughters to have an insurance policy in their own right, depending on the performance and value of a parent’s vehicle they could be driving. However, the sooner a loved one starts earning no claims bonus, the sooner they can start benefiting from discounts and becoming independent. That is one of the benefits of being a policyholder as opposed to a named driver. The other is that you could legally drive another car third party if granted permission by its owner.
Be More Security-Minded
Being security-minded means thinking about the in-built security systems vehicles have or buying one to protect your vehicle that will be insurance friendly. A Thatcham-approve alarm/immobiliser will, for instance, attract a discount from insurers. It makes no sense to purchase a cheap inferior alarm system that then makes no difference to your insurance premium and thieves probably have worked out how to bypass.
If you have a garage (that you can set up easily with the help of professionals from garage door repair houston), use it to house and protect your vehicle. Then remember to inform your insurance company that you are doing that. It can mean a small discount.
Many drivers out there will not travel many miles in a year but not tell their insurance company. They have to be less of an insurance risk if they are spending less time on the roads. A restricted mileage policy will work out cheaper when this is the case. Is pay as you drive car insurance working for you? Under car insurances better with Compare Car Insurance.
With these types of policies, insurance companies will ask you to estimate your mileage and may require you to take a reading from your odometer or mileage counter annually to verify your entitlement to such a policy. Repair shop, servicing, and MOT information can all be sources of mileage readings. It would invalidate a policy if a policyholder were to lie, though.
At the time of an accident, an insurer can check to see that you are within the mileage your declared you would only do annually. You run the risk of a claim being rejected if you are found to be over your mileage at this point. This makes it important that you do not agree to a mileage limit that you are never likely to be able to achieve. Air on the higher side with your figure to allow for all eventualities and holidays as well as commuting to and from work and using your car for shopping expeditions.
Those will families who travel long distances to work or use their care for work are unlikely to be able to restrict the mileage of their policies, but it could be a possibility for a single person who only travels locally or a not so active driver who has retired from working.