15 Tips on How to Lower Car Insurance Premiums

Do you want to reduce your monthly car insurance premiums? Silly question, we all do.

Here are some ways to help you achieve just that—lower premiums:

Survey your family and friends

Your best advice will come from people you know and trust, so ask them who they deal with, how much they pay and their experiences with the company.

Shop until you drop

Yes, this is one time you are allowed to do just that. Don’t pay for insurance quotes, you can get them free. Shop on the internet, phone and prepare a shortlist of possible companies to deal with.

Do you really need that sports model?

Times are tough, all over the world. The higher the value of your car, the higher your premiums. Your biggest saving in monthly insurance payments could come from buying a cheaper car. The insurer will make you pay for driving that fancy, modified car, build for speed.

Do a regular review of your insurance

Make sure you review all your insurance needs annually to ensure that you have sufficient cover; also that you do not pay for cover you don’t need. Use this time to shop around and compare prices.

Deal with one company

You should get a better deal if you take out a combined insurance policy for your car and household contents (just make sure this is in fact the case!)

Increase excess amounts

You can lower your premiums by accepting a higher excess. Again, do your homework first and make sure that you will have the higher excess amount available in case of a claim.

Driving an old car that is paid off?

Confirm the book-value of your car with a reputable dealership and compare that to your annual payments. You may want to consider changing from Comprehensive to Third party, Fire and Theft cover only.

Group Insurance:

If you work for a large company check with your Human Resources Department. There may be an agreement in place with an Insurer offering lower rates to employees of your company.

Clean Claims Record

Premiums are, amongst other factors, based on your claims record. What excess will you be paying should you claim? Is it worth losing your no-claim bonus and pay higher premiums? Consider paying for the damage yourself once you have done your homework.

Drive Carefully

Stating the obvious, but if you can avoid being involved in an accident, you could save your life and ensure lower premiums (Plus you ensure you get that nice no-claim bonus.)

Safety Precautions

Avoid claims, and increased premiums by always taking the necessary safety precautions such as locking your car, making sure all valuable items are removed, driving with closed windows, always being alert, keeping your car in a locked garage over-night and parking in safe places.

Any Major Changes in Your Life?

Going on pension, turning 25, got married, no longer using your car for business travel….any major change in your life could reduce your insurance premiums as it changes the risk. Make sure you bring this to the attention of your insurer.

Anti-Theft Devices

Advise your insurance company of any anti-theft devices such as alarms, tracking devices or immobilisers you have fitted to your car.

Safety Devices

If your car has ABS brakes or airbags, make sure your insurer knows this as you will qualify for a lower premium.

Simply Ask!

Last but not least: Ask your insurance agent or company for a discount. It’s a competitive world out there, what have you got to loose?