You can’t drive without car insurance and this necessary expense doesn’t come cheaply. At least there are a number of means whereby you can reduce it.
Car Insurance is an expense that some people just pay without giving it too much thought. After all, everyone needs car insurance, right? However, with a little bit of thought, there are a number ways that people can reduce the cost of their policy.
With the advent of the web and the online age it is easy to compare car insurance via the internet. A site such as Insurance (USA) Money Super Market (UK) iSelect (Australia) offers comparisons on car insurance. These comparison sites are easy to use and may save you valuable time when comparing auto insurers and their many offerings.
When it comes to insurance, it’s critical that you read the policy from cover to cover and have a full understanding of what is included. It is a legal document and it will explain to you what you are entitled to, and what you are liable for.
Third party is the minimum level of insurance that you must have. It covers you for any damage you cause to someone else’s car. This does not though; cover you for your own car.
The cost of insurance is based on the risk assessment of you and the insurer’s pricing model. So if you can prove to an insurer that you are a lesser risk, you are more likely to pay less. Things such as age, gender, and address can’t be changed, however some things can be. For example, if you don’t make any claims and have a good driving record, these factors will be taken into account.
If you read up on the reasons why you would pay for more insurance, you can work out what would make you pay more and in turn, what you can do in order to pay less. For instance, if your car is a high risk of being stolen, that will raise the price so any form of alarm or other security device is may bring the cost of your insurance premium down.
The more you drive, the higher the risk of you being involved in an accident so the less you drive, the less chance of an accident there is and, in turn the less you should pay in car insurance.
Some occupations pay less for car insurance so if you think this applies to you; inform your insurer of what your job is. For instance, driving around the block will appear more favourable then making a two hour trip each-way, the same will apply if you work from home, or use public transport to get to your workplace.
Sometimes insurers will have lower costs to attract new customers. It might pay to ask as a new customer, what special offers (if any) they have for new joiners. Don’t be afraid to compare car insurance and as a result of this, who you insure yourself with.
By paying your premium, you are insuring yourself for a twelve month period. But how much do you really need to pay for? If you picked a more conservative amount, you would pay less on your car insurance. When you’d finally need to claim, the amount you aren’t covered by could be dwarfed by the amount you saved on lower insurance premiums. Obviously your individual needs would determine whether this would be a suitable or even a viable option for you.