How to Make Your Car Insurance Cheaper

Along with fuel, tax, and maintenance, car insurance is a seemingly unavoidable cost of car ownership. Yet many drivers are paying far too much for their insurance each month, particularly if they don't take the time to shop around to compare rates. 

There are a number of strategies that could lower your insurance premium, from changing the type of car you drive to becoming a more qualified driver. The following are five top tips to help you reduce your car insurance payments.

1. Avoid paying monthly.

A year's worth of car insurance can be daunting on paper, so it makes sense to break it down into smaller monthly payments. However, this usually leads you to pay more due to interest rates or add-on fees. 

Paying in a lump sum every 6 or 12 months allows you to avoid these add-on charges. If paying such a large bill is difficult, try setting up your own monthly bill pay by depositing a set amount into your savings account each month. This will ensure that you have enough money to pay the bill at the end of the year.

2. Raise your deductible.

One way to slash your car insurance premium is by raising your deductible, or the amount you pay out of pocket in the event of an accident. If your vehicle is expensive to replace, this can be one of the best ways to save. 

Simply raising your deductible from $200 to $500 can lead to serious savings, for example, and wouldn't be that much more to spend out of pocket in the event of an accident. Naturally, only raise your deductible to an amount that you would be able to afford.

3. Choose a safer car.

The type of car you drive is one of the major factors that will determine your insurance rates, so if you're in the market for a new one you'll need to choose a safe, reliable model. You can use car comparison tools like Motoring to make sure you choose a model with all the safety bells and whistles. 

Features like electronic stability control, numerous air bags, anti-lock brakes, pedestrian detection systems, and automatic seat belts can all help lower your insurance premium.

4. Drive less, and drive defensively.

The less time you spend in the car, the lower the chances are that you'll be in an accident. If you can switch to alternative forms of transportation every now and then, such as taking public transport to work, let your insurance company know. 

You may be eligible for a discount. Similarly, careful drivers are rewarded with lower rates. Be sure to avoid speeding and keep your driving record clean if you want premium rates. You can take a defensive driving course to earn a discount from many insurers.

5. Shop around before you buy. 

Finally, be sure to compare all options before you buy a new policy. It's tempting to automatically renew your existing one, but you may be eligible for lower rates elsewhere. 

Try requesting at least three quotes from different insurance companies to compare terms, conditions, and rates. You may see a vast difference in the services and prices offered.

It's best to shop around every 12 months to compare prices, as market conditions often change over time. By following these simple tips, you could see a significant reduction in your insurance costs. 

Share

Share

Tell us what you think...

Tell us what you think...

Join She Inspires on Facebook

Tell Us...

Have you reduced your car insurance or running costs? What's worked for you?

Tell us on Facebook and Twitter how you've saved money and what's worked really well.


Read more...

Read more...

How to Sell Your CarHow to Sell Your CarFor most of us we only sell a few cars in our life so getting the experience to get the best results can be a bit hit and miss sometimes.

Here you can find the top 10 tips for selling your car and getting the best results.

How to Buy a CarHow to Buy a CarBuying a car might seem one of the easiest things to do but with these 10 Handy Tips you'll be able to make sure it is as easy as 1-2-3.
10 Top Tips for Getting the Best Rental Income10 Top Tips for Getting the Best Rental IncomeSo you've done, you've saved like mad for your first investment property and now want to make sure you get the best rental income from it that's possible.

We've got 10 great practical and affordable tips for you to achieve your dreams of financial freedom with rental properties.
How to Make Money and Sense of Bank AccountsHow to Make Money and Sense of Bank AccountsWhen if comes to figuring out bank accounts you wouldn't be to blame if you thought the big banks wanted to keep you in the dark so they can keep making big profits. So we thought we'd shed some light on how to make the most of your everyday money by understanding bank accounts better.

With the help of Amanda Cassar of Wealth Planning Partners we nut out the difference between savings accounts and everyday transaction accounts and how you can have the banks paying you money in interest.

Thinking Very Carefully About Joint Bank AccountsThinking Very Carefully About Joint Bank AccountsJoint accounts, are they the best or worst thing ever invented or somewhere in between?

We caught up with women's finance expert Amanda Cassar to get best tips and advice on whether to have a joint account and if so, how to do it the smart way.

9 Top Tips for Positive Cashflow9 Top Tips for Positive CashflowDo you have a profitable business yet struggle to pay the bills? Does this make any sense to you? The good news is this financial stress is fixable!

Find out how to take away the money stresses and enjoy your profitable business with Wayne Donnelly of 10X as we find out what is cashflow and how to make it all positive.
The Secrets to Understanding MoneyThe Secrets to Understanding MoneyLooking for some handy hand online resources to help get your money sorted?

Let Amanda Cassar of Wealth Planning Partners share some great tips and tricks online to make the most of your money.

10 Ways to Get Your Money Working For You10 Ways to Get Your Money Working For YouIt is so funny that while many of us are highly competent in our professional lives, it is so easy for us to neglect personal money management which should be top of mind for us – afterall if you don’t take responsibility for securing your financial future who will? We go through some of the essentials to help you take control of your finances.
Search by Keyword

Search by Keyword

Follow SheInspires.com.au on facebook
Follow SheInspires.com.au on Twitter
Delicious
Copyright © She Inspires Life Bondi Junction, NSW
2009 - 2017