Car insurance is one of those facts of life like death and taxes. You really can’t avoid it if you want to live and prosper in our modern world. Even living in a city without a car is difficult, especially if you want to get away at the weekends.
But you know, there are things that you can do that will dramatically reduce your car insurance premiums.
OK. So you’re on-board and you want to get cheaper insurance. Start of on the right foot and make sure you are approaching the companies that are offering lower rates to begin with.
Even with lowering insurance premiums in the current economic climate, there are still steps you should take.
1. Shop Around
Hand in hand with what we said above about reading reviews is shopping around. Never just pick the first insurer you see because their quote seems cheap, or is cheaper than what you’re already paying.
There’s almost always a better deal to be had.
Draw up a short-list of the cheapest insurance quotes that you can find. Maybe keep them written down on a separate spreadsheet or in a notepad so that you can record details against each one.
2. Get Your Quote In Advance
This one really can have a huge effect on your insurance.
Don’t leave things until the last minute. When you start looking for quotes, and tell the insurance company that you want the cover to start the next day, they know you’re desperate, and the premium will rise!
Doing the work two or three weeks in advance, and putting these dates into the comparison site will drastically reduce your premium.
3. Don’t Pay Instalments
Paying in instalments almost always ends up costing you money.
Very often, that cost can be a significant fraction of the total.
If you can, then opt to pay the insurance premium all in one go. It may seem like a lot of money at first but paying your insurance premium in one lump sum offers several benefits.
First off, you’ll pay a lower price than if you spread those payments over the year. Secondly, you’ll have a little more in your account each month after you’ve been paid, because you won’t have your insurance premium to pay.
4. Ask For Loyalty Discounts
Insurers love the idea that you will remain a customer of theirs for more than just the first year.
If they know that you’ll stick around, then they may well be more likely to offer you a discount. So if you are happy calling the company as speaking to a representative, then one of the questions you could ask as a follow up would be:
“Do you offer second-year loyalty discounts then?”
You’d be surprised at the response.
5. Keep A Good Credit Score
This one is a biggie. A good credit score goes a long way to keep your insurance premiums low. Pay off your credit card each month and avoid overdrafts at the bank.
Check your credit rating with a reputable online credit firm, and if you find it’s not as good as it could be then there are some simple steps to improving the rating that you can take.
Not only will this improve your insurance premiums, but it will also improve many aspects of your financial life as well.
There you go. Give these tips a try and enjoy lower car insurance premiums!