20 Easy Tips to Cutting The Cost of Your Car Insurance (Part One)
1) Purchase your car insurance via the internet. A lot of companies give you a discount for on-line applications because this is an automated process and costs them much less to process your application, you’ll be able to see discounts of 5%-10%. To receive an immediate online insurance quotation pay a visit to almost any car insurance comparison site
2) Do your research and shop around. All insurance providers employ different formulas to determine your insurance premium by adding or taking away money following each question they ask you. By simply doing your research you can find big savings on your insurance premium.
3) Buy extra products.Most insurance companies also do other insurance products ie “Building’s and contents insurance”. Most insurance companies will give extra discounts for purchasing more than one product, by doing this you could save a fair amount on all your insurance premiums.
4) Pay your insurance premium in one lump sum. By paying your insurance premium in full you can avoid paying costly interest charges that would be added if you paid your insurance premium by instalments.
Some insurance companies may charge as much as 15% APR on instalments. You may even receive a discount for paying in full. If you can not afford to pay in full see what rate a small loan would be, you may still save some money. Fill out a online loan application.
5) Increase your voluntary excess. Your excess is the amount paid by you in the event of a claim, by increasing this your insurance company should reduce your premium.
6) Lower your annual mileage. Lowering your annual mileage can reduce your premium, most insurance companies will quote you for around 12,000 miles a year. Try and work out how many mile’s you will do if it’s likely to be less you may get a discount. Be honest about this as your insurance company may ask to see old MOT’S and service history to verify your mileage in the event of a accident.
7) Have a car alarm, immobiliser and/or a tracker fitted. Theft of and from your vehicle play a major role in the calculation of your insurance premium. Having an alarm or immobiliser fitted will give you a small discount to your premium and having a tracker fitted could make you quite a saving.
8) Take the advanced driving test. Passing your advanced driving test will show your insurance company that you have extra skills when driving and are less likely to be involved in a accident.
9) Don’t inflate the value of your car. Adding extra value to your car when you apply for your insurance quote will do nothing for you apart from increase you premium. In the event your car is stolen or written off you will only be paid the market value of your car at the time of your accident.
10) Look after your credit rating.Insurance companies are now looking at your credit score as part of the calculation for your insurance premium. Maintaining a good credit rating could avoid unnecessary additions to your premium.
