Most driver’s will agree that it feels like the price of car insurance is creeping up each year. With so many other motoring expenses to pay, you’ll want to cut costs where you can. The good news is that it is totally possible to save on your car insurance if you’re aware of the right hacks.
1 . Raise your deductibles
When you are choosing your car insurance, you can usually pick a deductible which suits you. A deductible refers to the amount you’d need to pay out before the insurance picks up the bill, in the event of theft or an accident. Generally, deductibles are between approximately $200 and $1,000. The higher that you raise your deductible, the lower premium that you will pay out. Perhaps you are wary of filing for smaller claims because you don’t want to raise your premium? In this case, raising your deductible is a wise choice.
2. Credit rating
Some people are unaware that insurance companies look at credit ratings when they are deciding which premium to offer. You might ask why credit rating should be a factor, wondering how the two things are related? It’s been suggested that insurance companies see a good credit rating as an indication of a ‘responsible individual’ and who therefore is less risky to insure. Many individuals will feel that this may not always be true, and while they may have a point, if you attempt to sustain a good credit rating, you could end up getting a better car insurance deal.
3. Seek discounts
If you’re keen to save money on your car insurance you’ve got to seek discounts where you can. First off, educate yourself about the kinds of discounts that are available. One of the common types of discounts is a ‘multi-policy discount’. You will be eligible for a multi-policy discount when you purchase other policies from the same provider. Examples of such policies might be home insurance, renters insurance or life insurance. It’s also possible to get ‘car safety discounts’, and you will be eligible for one of these if your car is equipped with safety features. Such features could include daytime running lights, airbags and antilock brakes. Low mileage discounts are another great discount to keep an eye out for. For more information check out this Metromile review.
4. Price Compare
If you want to save money, you’ve got to shop around and compare prices. Many drivers make the mistake of simply renewing their current car insurance every year. If you do so, you’ll end up missing out on better deals elsewhere. Try using a price comparison website, or asking your friends and family who their providers are and how much they pay. With a little bit of effort, you could land yourself a nice deal as a new customer.
5. Defensive Driving Course
Defensive driving courses are designed to help individuals to improve their driving habits and become safer drivers. Throughout a defensive driving course, you’ll learn about risks, common accidents and how to prevent them, in far more detail than with standard driving theory practice. During a DD course, you’ll get better at anticipating the actions of other drivers around you, and become a better driver overall.
6. Black box insurance
Black box insurance is a type of insurance which involves telematics equipment. The telematics box allows your insurance company to track your driving habits and then determine your premiums according to these. If you’re considered as ‘high risk’ by your company, a black box can be helpful to provide evidence that you are a responsible driver. The black box will collect various information such as where and when you drive; how often you drive; how fast you go; and your driving habits. With this type of insurance, you can also add extras such as breakdown cover, legal protection or contents insurance.
When you are buying a new car, shop wisely. Certain vehicles cost more to insure than others, for instance, larger and more expensive cars. Buying a second-hand car can be a great way to save money on your motoring expenses overall. When you buy second hand, most of the depreciation will have already occurred, and so you won’t lose money. Hybrid cars are also a great option if you want to save money on fuel, plus these can often get you some attractive insurance packages. These cars use around 30% less fuel than conventional vehicles, so you won’t be filling up quiet so often!