7 Ways to Reduce Your Motor Insurance Cost
Car insurance is a legal requirement for every car owner, but it can be one of the most significant motoring expenses after purchasing the car itself. Thankfully, there are many simple ways in which to reduce your car insurance premium without sacrificing coverage.
Here are some simple but effective ways to lower your car insurance premium.
Shop Around at Renewal Time
One of the easiest ways to reduce your car insurance premium is to shop around. Don't just settle for the first quote you receive from your current insurance provider. Compare quotes from different insurance companies to find the best deal. Many insurance providers offer online quotes, so it's easy to compare prices and coverage options. If you have yet to purchase your car, you can also get valuable insight into the likely running costs by purchasing a Car History Check before you buy.
Pay a Higher Excess
Another way to lower your car insurance premium is to increase the excess on the policy. Your excess or deductible is the amount you pay out of your own pocket before your insurance coverage kicks in. By increasing your excess, you're essentially taking on more risk, which means your insurance company will charge you less for coverage. For example, an insurance policy may specify the excess at €250. But by increasing the excess to €1000, you will most likely save on the annual premium. Make sure however, that you can afford to pay the higher excess in the event you need to make a claim.
Your claims history plays a very significant role in determining your car insurance premium. If you have a history of accidents or even minor offences accruing points on your license, you will likely pay more for your insurance coverage. On the other hand, if you have a clean claims record and manage to maintain a full or partial no-claims bonus, you will incur a lower annual insurance premium. Drive safely, avoid accidents however small, and driving-related offences to keep your insurance premium low.
Bundle your insurance policies
Many insurance companies offer a discount if you bundle your car insurance with other types of insurance policies such as home insurance. This is known as a multi-policy discount, and it can save you a significant amount of money on your insurance premiums. Check with your insurance company or broker if they offer a discount for additional policies and take advantage of these discounts if they are available.
Choose a car with a lower insurance rate
The type of car you drive can affect your car insurance premium. High-performance vehicles and luxury cars are typically more expensive to insure than smaller, economy or family sized cars. If you're in the market for a new car, consider choosing a car with a smaller engine and lower insurance rates to keep your premiums as low as possible. Make use of the additional reporting options of a Car History Check to get a better idea of running costs of any vehicle you intend to buy.
Install additional security features
Most modern cars come already equipped with sophisticated anti-theft devices such as immobilisers and deadlocks. These devices alone aren’t foolproof however, particularly where the car key is stolen and used to access the car. In the event of such a theft, having a GPS vehicle tracker installed will allow the car to be quickly located and recovered. Installing such a device will in most cases, earn you a discount on your insurance premium due to the increased likelihood of recovery in the event of a theft.
Consider a Telematics or ‘Black Box’ Policy
Some insurance companies offer younger drivers the opportunity to have a driver monitor installed in their car. Known as Telematics or ‘Black Box’ systems, these devices monitor the driver’s behavior, driving style and hours of use to reduce risk and allow the insurance company to offer a lower insurance premium in return for a reduction in risk. This type of policy can be particularly useful for young drivers and first-time insurers who may have had trouble securing cover at a manageable cost.
Pay Upfront and in Full
Finally, when you do find cover at the lowest possible cost, you can minimise the cost by paying the full premium price up-front. While it’s tempting to reduce the initial outlay by paying in monthly installments, this will usually include an interest charge which, when added to each installment will increase the final cost.
Reducing your car insurance premium is achievable if you take the time to shop around, drive safely, and make sure you have the right vehicle and insurance cover for your particular needs. You can easily save money on your car insurance without sacrificing cover or essential benefits. Remember, it's always a good idea to review your insurance policy every time it comes due for renewal and make any changes necessary to ensure you're getting the best possible cover at the best possible price.
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
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