Cars are one of our largest expenses and one that most of us can not do without. One of the associated costs of owing a vehicle is insurance. Today I am going to give you 10 tips to save money on your car insurance premiums.
One of the most important things to do is to shop around. You will be surprised how much the quotes vary if you contact 3-5 different insurance providers. Don’t be afraid to pit the providers against each other. Spend time talking to the provider asking questions like: How will changing X to X affect the premium?
Increase Your Excess
If you increase your excess it will reduce your premiums as you are partly self-insuring. If you make a claim your out of pocket expenses will be higher but this will generally only take a couple years to pay itself off in cheaper premiums. An emergency fund will assist in covering this expense if you have bad luck early on.
Restrict Young Drivers
Drivers under 25 years old are considered more likely to make an insurance claim and will generally increase your premium. Some policies allow you to specify only drivers over the age of 30.
Be A Good Driver
Your driving history and previous claims determine your risk level. Completing a defensive driving course can help you to become a better driver and reduce your premium.
Although some providers are starting to offer monthly premiums at no additional cost this is generally not the case. Make upfront annual payments. You can budget for these annual expenses to avoid a large annual expense taking you by supprise.
Keep Your Car Secure
Park your car off the street in a lockable carport. Don’t leave valuables in your car. Installation of alarm systems and immobilisers can all help reduce your premiums.
Look After Your Car
Regular maintenance and upkeep of your car will improve the safety of your car and reduce your risk. Your insurance provider may not cover you if an incident is caused by your car being poorly maintained or unroadworthy.
Take Advantage Of Discounts
You can often save 10% or more if you combine multiple policies with the same provider. Pensioners and students may be able to get a reduced premium. Becoming a member of the RAA and other similar associations can offer you discounts on your insurance.
Use your car less
Most providers offer a discount for vehicles that are driven less than 10,000 kms per year. Spread the kms over multiple vehicles or alternative modes of transport could save you money.
Most insurers do not look fondly on car modifications and you will pay larger premiums for modified cars. Aftermarket rims, performance exhaust systems, stereo systems, window tinting, roof racks, bull bars and spotlights will generally be covered by insurance providers. More extensive modifications like turbo-chargers, superchargers, engine swaps and race performance parts may not be covered and could cause problems when it comes to making a claim.
Number 1 on the list and the most important is to shop around for the best price. My recommendation is to check a comparison website like infochoice or iselect and contact a minimum of 3 – 5 insurance providers to get the best possible deal. Only purchase the insurance that you require! Don’t get sucked into additional features that you may not need like, roadside assistance, accomodation, covering valuables in your car etc.
I hope these 10 tips to save money on your car insurance helps you to reduce your premiums. Let me know if you have any additional tips to help keep more money in our pockets.