Upon buying a car, insurance is one cost you have to incur continuously. The premiums are necessary for several reasons, depending on your coverage. For instance, your insurance could ensure you, your passengers, and third parties can be financially protected in case of death, disability, or injuries caused by a crash. Also, insurance can offer you coverage for the loss or damage of your car resulting from an accident, theft, vandalism, or fire.
Car insurance premiums are usually charged differently depending on a vehicle’s age or type, an owner’s driving history, gender, location, and other factors. If you feel like your insurance cost is too high, there are ways to lower this cost. Here are some viable ways to reduce your car insurance costs:
Before settling on one insurer, check the rates of other insurance providers. For instance, if you’re looking for car insurance for Australians, get quotes from at least three different companies. Many firms provide this information on their websites. Comparing premium rates could help you find an affordable company to consider. If you aren’t satisfied with your internet research, call at least three local insurers in your area to confirm their charges.
Besides affordability, you should also identify how reputable and reliable an insurer is before considering them. To do so, check customer reviews of different insurance firms and how they’re rated online or in local automobile magazines.
2. Practise safe driving at all times
Your driving habits might affect the cost of your car insurance. In most regions, accidents, and tickets cause insurers to raise premium rates for motor vehicle operators. Therefore, it’s best to practise safe driving while on the road. Ensure you follow traffic rules and don’t drive when drowsy or under the influence of drugs or alcohol. Also, avoid overspeeding or using your phone when driving your vehicle. These are some simple ways to avoid fines and accidents.
A refresher or defensive driving course could help you become a better motor vehicle operator. Moreover, you can use your smartphone to look for safe driving mobile applications that you can download and use.
Alternatively, use Bluetooth hands-free gadgets to avoid using your phone while on the road. These devices are safer because they can help you pick up calls or navigate unfamiliar roads without using your phone. Your car’s voice assistant could also help you drive safely. Some can manage your calls, aid with navigation, or warn you about lane departure or forward collision.
3. Don’t file small claims
Filing small claims with your insurance firm might increase your premium rate. In some cases, insurers give customers a bonus for not filing claims within a policy year. Depending on your company’s terms, you may get a 20 per cent discount the first time you renew your policy. Your bonus could go up to 50 per cent if you don’t file any claims within five years, meaning more savings on your car insurance premiums.
If you need minor restorations for your car, your request amount may be lesser than the processing charges. In addition, the money may be lower than the No Claim Bonus (NCB) you could ask for at the end of your policy year. In this case, it may be recommendable to have the repairs done by a well-experienced mechanic. This way, you might protect your NCB.
4. Lower your car mileage
Lowering your car mileage could also help you reduce your premiums. A car insurer could charge you a higher rate if you spend more time on the road with your vehicle.
You could try driving less or using mass transit to reduce your automobile’s mileage, as this might help you lower your premium rate. However, it’s best to enquire from your insurer about their mileage thresholds first.
5. Ask about available discounts
It also helps to ask your insurance company about any available discounts. Some firms reduce car premium rates for customers with a good credit score or those who take defensive driving courses. Other companies also offer deductions if a policyholder has more than one car or has been with their customer for a while.
Car insurance firms offer varying discounts. Therefore, ask your insurer about what they have available because you might qualify for one or two discounts.
After purchasing a car, insurance is a necessary cost you’ll shoulder semi-annually, monthly, or quarterly, depending on your policy. If your premium payments seem too expensive, there are ways to reduce them. As you’ve learned in this article, you can ensure this by looking for an affordable insurer, practising safe driving at all times, and not filing small claims. Furthermore, a lower car mileage and available discounts might also help.