Insider Secrets on Lowering Your Car Insurance Premiums

HomeBudgetingInsider Secrets on Lowering Your Car Insurance Premiums

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Wondering how to get lower car insurance premiums? Then you'll benefit from learning how to get lower auto insurance rates today.

Most drivers lament of having to pay high insurance premiums for their cars more than they had initially planned for.

What most of them don’t know, however, is that they get to this point because they hardly invest time in shopping around for the perfect premiums according to their needs.

But this can still change. So if you’re planning on renewing your car insurance anytime soon, it’s time to go through these useful insider tips to avoid repeating the same mistakes.

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1. Work On Increasing Your Voluntary Excess

Most insurance companies offer an option for policy seekers to contribute towards the costs of accident-related repairs. Instead of seeing this as a liability, you can choose to embrace it and even volunteer to contribute more in case this happens. Through this, you will significantly reduce your premium costs, which of course is beneficial. You, however, have to be vigilant not to accept very high costs as it can work against you in the future especially if yours is a low-value car.

2. Ensure Your Car Is Secured

This majorly applies to new cars. When you view the features of the car, pay special attention to the availability of tracking devices, immobilizers and approved alarms. Having these ones in place and filing a declaration can trigger your insurance provider to offer a premium discount of around 5-6%. Well, that’s quite some money, right? Make sure to consult with your insurer first and learn if they accept that option. Also, the investment you make should always outweigh the savings.

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3. Restrict your Mileages

When shopping for your quote, it’s always good to have your expected yearly mileage coverage in mind. Therefore, take time to analyze your car-use needs and come up with a reasonable mileage reduction plan. Remember a reduction in the miles coverage readily equals to an excellent premium saving tip. Whichever case and decision you make, always ensure to remain honest in your mile coverage claims as dishonesty will end-up costing you more. And you might even lose your claim and have your credibility washed down the drain.

4. Shop For The Best Car Insurance

This is one of the major ways to save on your car insurance. In fact contrary to various opinions that shopping around might lead to more confusion, you can actually end up saving lots of cash this way. What you need to pay close attention to, however, is the type of covers you use for your comparison chart.

Be aware. Some of the cheapest policies might miss the same level cover when you do make a claim. To make this a bit easy and convenient for you, it’s advisable to incorporate the use of an online comparison service to help you find the best car insurance from multiple companies. By inserting your correct details, you will easily find out the prices and even alter the excess and mileage for various quotes.

5. Aim At Annual Payments

Yes, there isn’t anything wrong with paying monthly, but if you look at it at a long-term basis, it can be quite expensive. So if you can afford, it’s best to make a one-go form of payment. Don’t think of it as a way of benefiting your policy provider but as you save your bank account from diminishing. Some individuals would swear of being better off paying a 0% on credit cards than using a monthly payment as their premium payment option. All you need is to clear the balance on time to avoid getting caught out of the interest-free period. Being smart and acting, it is the term!

6. Protect That No-claim Bonus

Most insurers encourage motorists to stay claim free by rewarding them with reduced premiums from time to time. Therefore having a prolonged no-claim bonus is one of the surest ways of cutting your car insurance costs. You should, however, get to understand what a No-claim means to your insurer as the term might differ across providers. So take time to go through your policy for better application of this money-saving concept.

7. Cease From Including Everyone On Your Policy

You might not be the only person who gets to drive your car, but that doesn’t mean you get everyone who might have a chance to on your policy. Only add regular drivers and other drivers only for the days that they have to be on the wheels. Also, be careful about adding inexperienced drivers to your policy. This should apply especially to young drivers who tend to be reckless on the roads.

If you’re insuring your children’s car and you happen to be their main driver, ensure to include that in your application to cut down on costs. Regardless, don’t be tempted to give wrong information as this can land you into trouble once your provider discovers you aren’t the primary driver. It’s better to declare otherwise than to lie.

8. Make Use Of That Garage

There is a reason as to why your garage is in existence, right? Cease turning into a store and make good use of it. Insurance providers tend to have more confidence in the general well being of cars that stay in the garage. This will not only keep it safe from damages, but also from theft incidences. Some even use this tactic to cut down on your premium. So if you can save some cash using a facility you already have, why not implement it?

9. Avoid Unnecessary Modifications

Yes, it can be tempting to add a few accessories in your car, but you have to think twice before going ahead with the idea. Sometimes even the tiniest modifications on your tires, audio and performance systems tend to trigger premium hikes. This is because modified vehicles tend to be expensive to repair and are also vulnerable to theft. So if it isn’t really necessary, let it pass. Well, until you’re ready to spend much more.

In Conclusion

Car insurance premiums don’t have to be expensive all the time. Sometimes all this is triggered by the choices you make as the owner. So ensure to carefully scrutinize any detail concerning your car before making decisions on the perfect policy. Also, remember that sometimes you have to implement restrictive measures to save yourself from unnecessary expenses. So if you have to take time comparing policies, just do it!


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About the author

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.


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