7 Ways to Help Reduce the Cost of Your Car Insurance

Having a car is a basic requirement today, given the rising cost of using public transport for commuting. However, when a person decides to buy a car, there are many additional costs, which they are entirely unaware of until they get involved in the car-buying process. One such cost that a car buyer has to pay for is the car insurance. 

Car insurance keeps the vehicle protected or helps car owners bear unexpected financial losses, making it an important part of the car-buying process. However, it still adds a lot of extra cost for individuals when buying a car, which becomes difficult to get rid of.

Well, today, we are going to decipher some significant ways in which you can reduce the cost of your car insurance, making your car-buying deal a wiser one:
 

#1 - Shop Around and Compare Rates Regularly:

Do not hesitate, and do not be in a hurry. Explore the insurance market, ask your friends, family, and relatives about their car insurance, collect data, and compare insurance quotes to understand which firm is offering you the best deal. This process is not a one-time thing and has to be done for weeks. If required, read blogs, watch videos, and do not hesitate to ask any questions about the insurance policies.

Nowadays, there are many online platforms, like MoneySuperMarket car insurance, that offer the best possible car insurance discounts, offers, and deals, along with other financial services that you must browse through before making any decision.

#2 - Consider Usage-Based Insurance (UBI):

This is a unique feature related to vehicle insurance. It is mile-based auto insurance, also known as pay-how-you-drive or pay-as-you-drive insurance. In this arrangement, car insurance is based on the type of vehicle used, the distance being covered, the driver’s behavior, and the place of operation and is measured against time. 

A telematics device or mobile application is installed in the vehicle to capture driving behavior data. The main purpose of UBI is to align driving behavior with insurance premiums, ultimately reducing the insurance cost for safe drivers. The data collected is reported to the insurance company, which then uses it to calculate the insurance premium.

If you don’t use your car much, this arrangement is most suitable for you.

#3 - Choose A Higher Deductible:

Choosing a higher deductible can reduce your car insurance costs. When a car insurance buyer opts for a higher deductible, it simply means that the insurer will have a lower financial risk. In exchange, the insurance company charges a lower premium amount. It also allows you, as an insurance buyer, to customize your insurance according to your risk tolerance and financial condition. It is really helpful if you have a good driving record.

Again, if you bought the car just for driving on special occasions and often keep it parked in the garage, a higher deductible will serve you well. At the same time, you can also plan to sell your car in the foreseeable future.

#4 - Bundle Policies With The Same Provider:

Another interesting way to save on car insurance is to use the benefits of bundling insurance. It simply means that you buy multiple insurances from the same insurance company. Insurance bundling is an ambiguous term used when a person buys a home and automobile insurance from the same insurer or when they buy one or more types of insurance from a single provider.

Many insurance companies offer discounts and reduce the premium amount when you give them business. Also, from the buyer’s point of view, it becomes easy to manage all policies with one single insurance provider.

It is an easy and convenient option. As a policy buyer, all you have to do is quote and buy two or more insurance policies from the same insurer. If the purchase qualifies, the company will automatically offer you a bundle discount. Some of the key benefits are easier payments, swift management, and reduced insurance costs.

#5 - Maintain A Clean Driving Record:

Another way of getting lower car insurance premiums is to maintain a clean driving record. It directly impacts your car insurance costs. When you drive safely and keep a good and intact driving record, the insurance companies place you in the low-risk category.

When you are a safe driver, it reduces your chances of getting involved in accidents, so your claims for the year will become zero. When this happens, your no-claim bonus will be retained, and you shall receive discounts on your car insurance premium. For instance, not claiming any car insurance for five consecutive years can lower your car insurance cost by 50%. So, a simple idea of keeping a good driving record can help you exponentially.

#6 - Choose Your Vehicle Carefully:

Most people do not know this, but the model, price, car brand, and location also play important roles in defining car insurance costs. If you want to save on car insurance, you can actually look for models that come with low-cost insurance. Of course, this may lead to buying a car you don’t want to, but here, the objective is to reduce car insurance costs, and with that mindset, you can always opt for a vehicle that helps you with it.

A car with better mileage will help you drive safely, have low fuel requirements, and eventually cut down on many costs. In this way, there are many direct and indirect ways through which choosing the right vehicle helps reduce car insurance costs.

#7 - Take Advantage of Low-Mileage Discounts:

A low-mileage discount is an incentive given to insurance policyholders who log fewer miles every year. The less you drive, the lower your chances of being involved in road accidents. The insurer sets a mileage threshold, and if you stay below that limit, you will be eligible for a car insurance discount, which will save you a lot of money.

The limit is typically between 7500 miles and 10,000 miles annually. A low mileage discount encourages policyholders to drive less and save on fuel and maintenance costs. At the same time, when you drive less, you have a smaller carbon footprint. Hence, you eventually contribute to the environment, too. On average, you can save between 5% to 30% on your car insurance costs.

Lastly, several ways will help you get cheap car insurance, but not all of them will work in your favor. We suggest you apply these seven ways to get a better deal for your car insurance and see where it takes you. The number one way, as listed above, is always to compare prices, explore the market, and look for better options. The rest of the ways, such as opting for a good vehicle, bundling policies, getting a higher deductible, and maintaining a clean driving record, are important as well but come later in the process.