How Can I Save money on My Car Insurance?


Car insurance is one of those costs we must deal with on a yearly or monthly basis. That however does not mean you should struggle to clear your premium. Here are some tips on how to save a few more dollars on your car insurance.

Ditch That Loyalty

What you need to know is that, insurance companies are always out there looking for new customers. They therefore create nice and attractive deals just to keep the numbers growing. If you are stuck with your old insurance company, chances are that you will not take advantage of such deals. Your insurance sales agent might have told you that loyalty discounts are the key to saving. However, as it turns out, that’s not always true. If you are bold enough to shop around, you will realize that there are numerous special offers. Some of these beat your current provider’s quotes, hands down.

 

 

Use Your Driving Distance to Negotiate

Did you know that you can use the argument of kilometre range to negotiate for better discounts? Well, a good number of leading insurers offer cheaper premiums for short distance drivers. This is a boon especially for city drivers who mainly use their cars for shopping and weekend drives. Keeping in mind that we (Australians) drive an average of 16,000km per year, you can always benefit from a low kilometre discount if you drive below that distance. 

 

Increase Your Excess

Excess payment is the amount you part with in case of an accident. Usually, an insurer will require you to bear responsibility for some of the accidental damage on your car even if you have applied for comprehensive coverage. That being the case, the lower the responsibility you apply for (excess), the higher the premiums get. Likewise, the higher the responsibility you embrace, the lower the premiums you’re likely to get. It’s that simple. This is the best option especially if you are a safe and confident driver.

 

 

Maintain Your Car

Sometimes, all it takes to save big on car insurance is as simple as maintaining your car. A simple car tip would be fitting your vehicle with safety features. Visit a good mechanic and get its engine and bumpers checked. Avoid running on over-used tyres. Most importantly, take good care of your car – on the road and off the road. Insurers have a soft spot for well-maintained cars and you may get a discount for proving you’re a responsible car owner. 

Pay Lump Sum If You Can

There are always benefits to buying things in lump sum – including insurance. As you might be aware, insurance companies are also aiming to make money and increase their pool of income. The easier you make it for them to collect this money (in form of premiums), the more they are likely to reward you. At the same time, the harder you make it for them to collect premiums, the higher the likelihood they will slap you with additional fees. So, if you can afford it, it’s highly recommended to pay your premium in one annual lump sum. 

 

Final Word

Being able to save something from your transactions can help you focus on things that matter. So, the next time you have to update your car insurance, be sure to adopt a different approach. Sometimes, that’s all it takes to salvage a few more dollars and maximize on your value for money.