4 Ideas For Lowering Your Car Insurance Premiums

By James Spacey

For many years car insurance premiums have been going up substantially. You’d now expect to pay several hundred or even a thousand dollars a year. But the rate you pay for your premiums depends a lot on the insurance company you go with, as well as your age, the type of car you drive, your claims history and possibly where you live.

The majority of drivers on our roads want to be comprehensively insured but the cost of premiums are becoming increasingly prohibitive. Third party personal insurance is compulsory for every car on the road. It is paid when you register your vehicle. But CTP insurance does not cover you or your own car. This is where you have to compare insurance companies to try and get a good deal.

It’s important to have a good understanding of insurance and car insurance companies to make sure you get a policy that doesn’t wipe out your income entirely. With this in mind let me share with you 4 tips to saving on auto insurance. In some cases you will save hundreds of dollars.

The first thing you must always do is compare policies. Some premiums can differ from comparable cover by hundreds of dollars. You have to shop around and get several quotes before you commit to a policy. In some states your state insurance department can be of assistance. Where insurance is state regulated the department will have information available about the kind of coverage you can get and the rates you can expect. Then you should start talking to friends and family about their cover. There are also lots of online consumer resources about insurance companies and policies for car insurance. Some even compare different policies so you can see straight away where you can save.

Just remember that price isn’t the only factor in choosing car insurance. One of the most important things to consider when insuring your car is the quality of service you can expect from the company. Some companies don’t respond very well to claims and this is when you really need help. Some services are even available at additional cost. I recommend getting your three best quotes and then going to the insurance agencies directly to discuss their service before deciding on which way to go.

The next way to save money on insurance premiums is by choosing a higher excess. The excess is the amount of money you’re willing to pay before filing a claim. In many cases it is about $200 as a standard, but if you increase this you could save up to 25% a year. Just make sure that whatever amount you choose as your excess is an amount of money you could comfortably pay if you had an accident.

The final tip I’m going to give you is to discuss with your insurance company the possibility of tailoring your policy by removing cover you don’t need, or could go without. Some of the more flexible parts of an insurance policy include medical payments, uninsured motorist cover, collision and accidental damage. By deciding whether some or all of these extras are necessary for you you are going to save even more.

Tailoring your car insurance policy to your individual circumstances is something everyone can do. Don’t be satisfied just to take the policy off the shelf. This is always the most expensive option. You need to compare price, service and extras to get the best deal on your car insurance. If you do you are going to find your premiums are much more manageable.

James Spacey writes about a variety of topics including commercial insurance brokers and learner drivers.

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