If you’ve recently had to insure your car, you’ve probably noticed that your premiums have risen in comparison to the previous year.
Rising used-car values and the rising cost of replacement parts have both contributed to higher premiums.
So, if your car insurance is up for renewal, here are some tips to help you get the best deal. Before we begin, it is important to note that you should always be truthful when insuring your car; otherwise, your policy may be voided.
While many of us are aware that when renewing or purchasing a car insurance policy, we should shop around for a better deal, many of us would rather avoid the hassle and simply let it auto-renew.
However, taking the time is worthwhile because drivers can save a significant amount of money by shopping around. There are numerous insurance comparison websites that make it simple to compare policies and find the best deal.
Determine your policy as soon as possible.
If you know when your car insurance is up for renewal, the best thing you can do is plan ahead of time for the following year. Doing it at the last minute will always cost you more than if you planned ahead of time.
Most insurance companies will allow you to purchase a policy four weeks in advance, which is the best way to reduce your premium. If you’re switching insurers, don’t forget to notify your current one that you’re cancelling your current policy, as it may be set to auto-renew.
Reduce your annual mileage.
Adjusting your annual mileage allowance on car insurance can also make a big difference, because the more miles you drive, the more likely a collision or damage will occur.
While reducing your mileage by 1,000 miles is unlikely to make a significant difference, wildly overestimating your mileage will almost certainly cost you. If you’re not sure how many miles you drive, look through your car’s service history to figure out the annual mileage. However, ensure that it is representative of what you do, as underestimating it may result in a policy being invalidated.
If possible, pay the premium all at once.
When you purchase insurance, you will be asked whether you want to pay in one lump sum or in monthly instalments.
If you have the funds, paying it all at once will save you money in the long run because you won’t have to worry about interest charges depending on the insurer and the amount.
Consider where you park your car.
Where you usually park your car can have a big impact on your premium because it affects the likelihood of it being demolished, damaged, or stolen. Again, never lie about where you keep the car, both during the day and at night.
However, if you have the choice of going somewhere safer, it’s worth making the switch. For example, if you have a garage or driveway but choose not to use them and instead park on the street, the policy will be significantly higher.
Purchase only the cover you really want.
When purchasing a policy, you will frequently be asked if you want any extras. These can include legal protection, breakdown coverage, and key covert assistance with replacements.
These can quickly cost, so it’s worth considering whether you really need them. It all depends on your specific requirements, but it’s worth double-checking that you don’t already have this. Many new cars, for example, come with free breakdown coverage for a set number of years (often the same as the warranty), so you won’t have to buy it again.
Examine a telematics policy.
A telematics policy, also known as a black box policy, allows the insurance company to monitor your driving habits and adjust the cost based on your driving style.
It is frequently used by younger drivers to help reduce costs, but such policies are available to motorists of all ages and experience levels. It’s a great way to lower premiums, but keep in mind that your driving will be tracked, and bad, fast, or erratic driving may result in you paying more. Some policies frequently impose curfews or penalties at night.
Consider a vehicle that is less expensive to insure
If you’ve exhausted all of your options and are still unable to obtain the car insurance you desire, a final consideration is the vehicle itself. If you own a desirable, high-value, or powerful vehicle, the premium will be higher as a result.
Though you must consider the cost of changing vehicles, a smaller, less powerful vehicle is almost always less expensive to insure. One simple method is to look at the insurance group number. The lower the number, the less expensive the insurance. However, you should always look into insurance premiums before purchasing a car to avoid a nasty surprise.