Do you want to save money? You can reduce your expenses by saving money on your car insurance. If you’re struggling to make ends meet each month, cutting costs is a better strategy than going into your overdraft. Stopping your car insurance can have negative consequences in the long run. However, there are ways that you can reduce how much you spend on car insurance so that you benefit from saving without the risks of being without insurance.
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1. Do your research
Research all the car insurance companies that are out there and make a list of the reliable companies who offer a good service. Once you know which companies are trustworthy, write down how much each one charges for their products. Compare prices and choose the one that offers a combination of a good price and a trustworthy service.
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2. Combine insurance policies
Take out home and car insurance with the same company. If you have insurance for your portable possessions, you can combine this with your car and home policies too. When you use multiple products from one company, it will often result in savings as well as reduced administrative fees.
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3. Review additional products
While car insurance is vital, you may not need the additional products that you have signed up for. Check what extra products you’re paying for and assess whether you really need them or not. If they’re not that important, cancel the additional products for extra savings.
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4. Get a lower monthly premium
Check your insurance company’s policy for ways to achieve a lower monthly premium. In some cases, equipping your vehicle with a tracking device can reduce your monthly fee. Ask your provider for a revised quote once the tracking device is fitted. Insurance providers may view you as a low-risk client if you’ve completed an advanced driving course. Not only will an advanced driving course increase your chances of securing lower premiums, it will also help to keep you safe on the road. The better your driving skills are, the less likely you are to be involved in an accident, which would impact negatively on your claims history. The more claims you make, the higher monthly fee you can expect to pay. Increase your vehicle security so that you’re eligible for a lower monthly premium. When you keep your car in a locked garage or on a secure, fenced property, it acts in your favour when your monthly premium is calculated.
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5. Update your details
Make sure that you update the details on your car insurance policy regularly. It’s important to keep your personal details up-to-date as it’s a requirement to ensure the validity of your policy. You can also save money if you move to a safer neighbourhood or to an area with improved security facilities. Likewise, asking your insurer to reassess the market value of your car each year can help to ensure that your monthly premium takes the depreciation of your car’s value into account.
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6. Consider your excess
While opting for a lower excess can seem like a money-saving strategy, it can cost you money in the long run. Make sure that you have the money to pay the excess if you’re in an accident and need to make repairs to your vehicle. Read the terms and conditions of your excess before you decide which excess option is best for you.
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7. Select your car carefully
Different types of cars come with varying insurance premiums. Check with insurance providers for quotes according to the different types of vehicles that you are considering. Vehicle parts are the biggest expense for insurance providers so monthly fees vary according to the vehicle make that is insured. High-performance vehicles, which are capable of travelling at fast speeds, are likely to incur a higher premium.
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Now that you know more about car insurance, you can devise strategies to save money by reducing your monthly premiums.
