9 Simple Ways to Save on Car Insurance
Finding ways to save on car insurance can really help to reduce your costs.
The key to ensuring that you’re not paying more than you need to on your policies is to try and look at how insurance companies will view you as a potential client.
If you’re looking for ways to save on the amount you pay on car insurance premiums, there is some good news. There are plenty of things you can do to help reduce how much you pay for your policies. Several of these tips would also apply when shopping for commercial insurance of any kind.
Here are 9 quick tips you can use to help you save on car insurance:
1. Review Policies
If you’ve been with the same insurer for years, it could be that your policy might be outdated or still priced on an older schedule. These days insurance companies are much more competitive about finding and keeping new customers, so you might want to review your policy to see if you’re still getting the best deal for your current circumstances.
A good example of this is people who only use their car occasionally could benefit from a pay-as-you-drive policy rather than paying higher premiums for consistent use.
2. Shop Around
It’s surprising how many people don’t shop around to find the right car insurance policies to suit them. They simply trust that the insurer they’ve been with for years will treat them well.
Take the time to compare other insurers and other policies. See what they include and what’s being covered in each policy and then determine who’s really offering the best insurance deal to suit your needs.
There are plenty of comparison websites available online, or you could take the time to speak to a qualified insurance agent to ask about various policies to suit you.
3. Motor Vehicle Record
Did you know that drivers with a record of being involved in accidents or receiving traffic infringement tickets are likely to pay higher premiums than drivers who have a clean record?
If you have a clean driving record, you could be able to negotiate with your car insurance company to save a little on how much you pay on premiums. Of course, if you’ve been in an accident, but it was deemed that you were not at fault, you may still be able to negotiate with the insurance underwriter.
4. Defensive Driving Courses
It’s possible to enroll in a defensive driving course for around $50. You’ll learn to be a much safer driver on the roads and you could also be eligible for a 10% discount on the premium for physical damage on your policy for 3 years, which can save you plenty.
5. Multiple Policy Discount
If you have more than one policy with your insurance company, such as insuring two cars within the family, you should be able to receive a multi-car discount. This can help reduce the amount you pay on car insurance premiums.
6. Work On Improving Credit Score
When you apply for an insurance policy, your insurer will view your credit score to assess the amount of risk you may pose to them in the form of non-payment of premiums.
If your credit score is a little on the low side, work on improving your credit score. Simple things like catching up any overdue bills and reducing your credit card balances can help you boost your score. If you make an effort to be sure all your bills are paid on time for the next few months, this will also help to increase your credit score, although it does take a little longer.
There are some very easy tips available that can help you bring your score up relatively quickly, so put these to good use. Once your score has improved, contact your insurer and see if you’re able to receive a reduction in your premiums.
7. Homeowner’s and Umbrella Policies
There are some insurance companies willing to offer great discounts to customers with multiple policies. This can mean customers who have homeowner’s insurance, car insurance and umbrella liability policies could be paying less overall for their insurance premiums.
8. Increase Your Deductible
The amount you pay as a deductible can seriously affect the amount you pay in premiums. Check your current policy and see if you can amend it. You might find that you pay a more favourable amount by amending your deductible to be $25,000 per person/$500,000 per accident instead of a policy for $100,000 per person/$300,000 per accident.
9. Couple’s Car Insurance
It seems that women have fewer accidents than men, which could be why many insurance companies charge female drivers less on their premiums. If you know your insurance company is likely to offer a lower premium for a female driver, perhaps sign up your insurance policies as a couple.
This way, you allow the female to receive the benefit of lower premiums and you simply add another driver onto the existing policy. This allows a male driver to build up a safe driving record and also means a couple can benefit from paying reduced insurance premiums.
Bonus Tip – Pay Your Insurance with Your Credit Card
Most people aren’t aware of many benefits available on their own credit cards. However, if you’re willing to pay for your car insurance as an annual amount upfront using your credit card, you’ll be saving quite a bit of money from paying it monthly.
When you elect to have your premiums deducted from your bank account each month, you may find you pay more for your insurance over the course of a year than if you were to pay for the entire amount upfront as a lump sum.
You then have the option of transferring your credit card balance over to a card with a low interest rate to pay it off in your own time. If you shop around, you could find there are balance transfer deals available that may allow you to benefit from paying 0% for six months, so you won’t be accumulating high interest charges.