Several Ways to Keep a Car Insurance Premium Down
There are several ways that motorists can reduce their car insurance premiums. In this article, we will explore some of the most effective methods. While each individual’s situation may be different, these tips should provide a good starting point for those looking to keep costs down.
Shopping Around for the Best Premium
It will pay you to find a good insurance broker, such as one sure insurance, who can save you a lot of time by finding the most competitive premium for you.
Brokers will act on your behalf, comparing like-for-like cover with the most competitive insurance prices on offer. They have their contacts in that they have relationships with many different insurance companies that will pay them a commission in return for finding the business. As the insured, you do not need to pay any more premium for the privilege, even though the insurer has only received a proportion of the premium. Instead, you might just have a small broker fee to pay in return for their service.
One of the most important things to do is to shop around with insurance and not accept your renewal premium, whether that is between brokers or insurance companies. Generally, with a broker, you should not need to look elsewhere as they will all mostly deal with the big companies and those offering good rates. Insurance companies, on the other hand, are all different and offer a variety of coverage options. It pays to compare rates and find the company that best meets your needs.
Many companies offer discounts for things like having a clean driving record or being a safe driver. Things like keeping your vehicle in a garage overnight or having an insurance-approved alarm system can make all the difference to saving that bit more on your premium. It’s always worth asking about discounts when shopping for car insurance. You will, of course, hopefully already have your no claims discount for claim-free driving and then can add to this with further smaller discounts.
Raising Your Excess
Another way to lower your car insurance premium is to raise your excess. This is the amount you would pay out of your pocket before insurance coverage kicks in. By increasing your excess, you are essentially agreeing to pay more should you need to make a claim. This offers several advantages to the insurer. It makes drivers more careful in the way that they drive, meaning fewer claims, will mean less for insurers to pay out in the event of a claim, and often eliminates smaller claims being made and all the administration and expenses involved with them.
While this may seem like a risky proposition from a policyholder’s point of view, it can save you money in the long run. This is because insurance companies often offer lower premiums to those who agree to higher excesses. Sometimes, certain policies will carry compulsory excess which immediately makes them cheaper. In addition, you can elect to increase the insurance excess with certain policies under the terms and conditions of the quote.
Bundling Policies is a good way to save money with insurance. If you have multiple insurance policies, you may be able to combine them. Many companies offer discounts for customers who have more than one policy with them. For example, you may be able to get a discount if you bundle your car insurance with your homeowners’ insurance or have more than one vehicle to insure. It is always worth asking because it is not immediately apparent when you are obtaining all individual quotes online.
These are just a few of the ways that you can keep your car insurance premiums down. By shopping around, raising your excess, and bundling policies, you can save money on your car insurance. Just remember to always drive safely to avoid accidents and claims.