10 Things You can do to Reduce your Car Insurance Bill
For some drivers, the search for a good rate on their car insurance seems un-winnable. While official figures show that the average premium cost is falling, this comes after several years of increases.
This doesn’t mean that it’s impossible to get cheaper car insurance though. Here are 10 things you can do to reduce your car insurance bill.
Switch Providers
If you have a claims-free record, then you can – and should – switch insurers regularly. Compare rates from different insurers and consider using a broker. Brokers are paid by the company so using one shouldn’t cost you any more than contacting an insurance company directly.
Consider Using Security Systems
Having security systems installed on your car, such as a car alarm, reduces insurance rates to some degree.
Pay Annually
If you can afford to pay annually for your insurance, then this is a great way to save some money. Paying for your insurance monthly is like paying off a high interest loan where the interest is around 20%. Most insurance companies such as AA Ireland give you the choice of paying for the entire policy annually.
Avoid Overdoing It
One way to keep the cost of insurance down is to be conservative with the value of your car and not over-insure it. You can only claim as much as what the insurance company says the car is worth. Don’t be one of the many people who overvalue their car. Check adverts and the Revenue Commissioners Website (www.revenue.ie) to get an idea of what your car is worth.
Check the Excess
Be mindful of the excess on the policy. This is how much you’d need to pay before making your claim. Insurers have started charging higher excesses. This helps reduce the risk for them, but it means you might be priced out of making a small claim. It’s not uncommon to find an excess of €500 on a policy, but an excess that high negates the value of having an insurance policy in the first place.
Use Telematics to get a Discount
Telematics track the location, condition, behavior, and movements of a vehicle. They can be tracked using a smartphone app. Some insurers offer discounts for drivers who allow for telematic collection. These insurers aim to reward users for better and safer driving, provided you are indeed a safe driver.
Get Insured With Its4Women
Its4women is an insurance provider who caters towards women. Given that women tend to be safer drivers with less accidents, their rates are pretty competitive and can save men a lot of money. Even though they are geared towards women, the law states that it is illegal to discriminate against men and women over insurance, so there’s nothing stopping men from being insured by them too.
Don’t Modify Your Car
You should avoid modifying your car for anything other than improving safety. Even minor modifications, like new alloys, can drastically increase premiums. Any changes made to the car should be discussed with your insurer ahead of time. However, modifications that improve safety – such as immobilizers and alarms – can help to reduce premium costs.
Get a Small Engine
Be selective when choosing a car. The more expensive a car is and the bigger the engine is, the more the insurance will cost. Insurance also costs more if it is imported or there are more thefts reported for that particular model. Consult your insurer before buying a car to get an idea of what insurance might cost for that make and model.
Keep your Car in a Garage
Make sure that your car is properly secured when not in use. Keeping it in a garage, for example, means that it is less likely to be stolen or damaged. If you tell your insurer that you keep your car in a garage you may be able to get a discount.