Can I Reduce What I am Paying for Car Insurance?
If you are a driver then you will have to pay car insurance. This could be annoying as it can be pretty expensive. However, there are things that you can do to get the costs of the car insurance down. It is worth thinking about them and whether you can make any changes so that you can save money.
There are lots of different insurance companies that offer car insurance. They will differ a lot in price and it is well worth taking a look to see whether you could save a significant amount by switching to a different one. You will find that you will normally sign up for insurance for a year. When it comes time for renewal, make sure that you compare the cost you have been quoted with other insurers to see whether you can save money by switching to another. If you are not keen on switching then it is worth still doing the comparison. Then get in touch with your current insurer and let them know how cheaply you can get insurance elsewhere. This will allow you to negotiate with them and hopefully they will be able to lower your price. Although it is expected that insurance will go up each year due to inflation, you need to make sure that it is a realistic increase and not too extreme.
Change Detail of Cover
It is also well worth checking what your insurance actually covers you for and whether this is what you need and want. You will find that insurance policies will differ in things that include and extras you have to pay additionally for. This means that you might be paying extra for things that you do not even use. Therefore, make sure that you ask your insurer what is included so that you can decide whether you feel it is necessary to have cover for it all. It is also worth checking the excess. This is the amount that you will have to pay when you make a claim. For example, it might be that you make a claim for £500 and if you excess is £100 then you will only receive £400 towards the repair. The higher the excess the lower your premium and so it could be worth raising it, particularly if you are not in the habit of making claims for cheap repairs.
Have a Cheaper Car
The cost of your insurance is partly based on the cost of your car. This is because the car will need to be replaced if it gets damaged so much it cannot be repaired. This means that the more expensive the vehicle is, the more the insurer will have to pay out. Therefore, if you choose a cheaper car, then your insurance will be lower. You might also be able to do some research on which cars are cheaper to insure as there will be some that have more expensive parts or are just generally tend to be stolen more often or involved in more accidents that will be dearer.
Do not Make Claims
If you make lots of claims then your premium will go up. It might seem like the point of having insurance is so that you can use it and make claims with it. However, if you make lots of claims you will be seen as a higher risk and your insurance will go up. You may find that you will pay more in increased premiums than you would if you just paid for the things you are claiming for yourself. It could be sensible to consider leaving insurance claims until you have something really worthwhile to claim for that you will not be able to afford, rather than making smaller claims for cheaper things that you can afford.