Having a car is both a luxury and a necessity, but unfortunately, it can also be the bane of your existence – what with maintenance, fuel, registration, and insurance, car expenses can seem overwhelming and never-ending.
Yet, just like shopping around for the cheapest fuel prices at various petrol stations, you can have the same sentiment in mind when insuring your car.
Don’t just settle for the first auto insurance company you find; instead, first reduce your car insurance costs by following some hot tips below before applying for a policy, to ensure you get the cheapest cover.
There’s a way to be frugal and protect your assets, and it’s simple when you follow these 5 hot tips on how to reduce your car insurance costs:
Save money when you choose the right car insurance for your lifestyle
- Avoid unnecessary coverage: While comprehensive insurance may make sense financially, it might not be wise to fully insure an older vehicle that is only worth a few thousand dollars. Do your homework – if it will cost more to insure your car than replace it, consider third party car insurance, which will surely save you a considerable amount of money.
- Buy anti-theft technology for your vehicle: Buy a factory fitted car alarm, a steering wheel locking or any other simple device to deter potential thieves or vandals. The more difficult your car is to steal or damage, the more money you will save on your insurance rates.
- Avoid modifying your vehicle, as this attracts a higher insurance fee. Anything that will enhance a car’s performance or appearance will increase the likelihood of break-ins or car theft.
- Being a good driver and having an immaculate driving record will also help you look good to insurance companies when requesting quotes. It makes sense – the more accidents you are in due to reckless driving or violating road rules, the more likely you are to claim, and cost insurance companies thousands of dollars. Inevitably, your fees will increase, which means you will be paying more on your insurance, which is the one thing you are trying to avoid. So, always obey the road rules and don’t speed as this can help you save money on your car insurance.
- Finally, increase your excess, which is the lump sum you pay in the event of an accident. Following on from the aforementioned point, if you are a good driver and obey road signs, you will not need to make an insurance claim. So, if you increase your excess to even a couple of hundred dollars more, your premiums can be reduced significantly, saving you more money.
Taking out car insurance to cover your possession is a necessity, but paying top dollar doesn’t have to be.
Follow these simple tips and you can enjoy driving and ownership of your vehicle more, without throwing your hard-earned money at your car insurance policy.