7 surprising ways to lower car insurance
In the long term, the best way to save money on your premium is to drive safely and build up a no-claims bonus. If you’re looking for insurance and you haven’t built up a no-claims bonus yet, don’t worry. There are still plenty of ways that you can lower the price you pay for insurance. Some of which you’d never think would work. So if you’re looking to renew your car insurance, here are seven ways to get the best price.
When buying insurance, thousands of motorists allow their policy to auto-renew each year. It’s easy to do and ensures that you’re always covered, but it’s usually the most expensive way of buying car insurance. So when your policy is coming to an end, make sure you shop around for a cheaper quote. If you switch providers, don’t forget to cancel your auto-renewal, or you could get charged twice.
Unfortunately for motorists, the insurance industry rarely rewards customer loyalty. Staying with the same insurance company for several years doesn’t mean that you’ll be offered a better quote than a new customer, even if you’ve never claimed with them. Comparison sites such as GoCompare and Confused allow you to check many different insurance providers with the click of a button, so you can instantly get an idea of the price you should be paying.
Check multiple policy types and options
Third-party insurance is always cheaper than fully comprehensive cover, right? Usually, this is true, but sometimes you can get a better deal with more comprehensive cover. Some insurance companies view third-party insurance holders as high-risk. As illogical as this seems, if you only need third-party insurance, make sure to get a comprehensive cover quote too.
Park somewhere safe
It’s probably not something you think would affect insurance too much about, but parking your car in a garage overnight, or even on your driveway rather than the side of a road may get you a discount with some insurance companies. So if you have access to a garage or a driveway, make sure you use it. Be aware that if you inform your insurer that you’re parking your car in a locked garage, but then leave it on the side of the road instead. They may use it as grounds to dismiss a theft claim.
Don’t pay for extra insurance you don’t need
What do you use your car for? If you use your car to visit relatives or going to the shops, you don’t need to buy insurance that covers commuting. With Covid-19, more of us are working from home, and with some companies looking at making work from home permanent, many people that are covered for commuting no longer need it. So if your work has recently moved from the boardroom to the bedroom, or anywhere else in the house. Make sure your car insurance reflects that.
Check your profession
Most insurance companies view certain professions as high-risk and consequently charge them more for car insurance. If you’re a construction worker, chances are you’ll be paying a lot more than a school librarian to insure the same car. If you have a high-risk profession, you can often save some money by ‘tweaking’ your job title. A video game designer can get a cheaper quote by putting their job title as a software designer, as that is still an accurate presentation of their role. But a professional footballer claiming to be a librarian would likely be considered fraud, so make sure that the job title you chose is accurate.
Take a higher deductible
By taking a higher insurance deductible, also known as an insurance excess, insurance companies will usually offer you a discount on the policy, as in their view, you’re taking a bit more of a risk. A typical deductible tends to be between €300 – €500 in most European countries, but most insurers will allow you to take a €1000 deductible in exchange for a discount. Make sure that you’ll be able to afford it, though, or you could find yourself without a car in the event of an accident. VouchForMe’s peer-to-peer social proof model allows you to share the risk. By linking your deductible with a guarantor.
Have you tried any of these techniques? Are there any other tips that we’ve missed? And did any of these tips help you save? Leave us a comment on Facebook, Twitter, or LinkedIn, and let us know.
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