5 Car Insurance Cost Cutters

| May 3, 2013 | 0 Comments

Car Insurance

When shopping around for car insurance quotes, keep in mind there are a number of criteria insurance companies use to determine the price you will pay. Here are some of the best tips and tricks to ensure you get the best price:

1) Improve your credit rating

It may come as a surprise but, many insurers now base the rates that they offer you on your credit score. It is becoming more and more of a critical factor in how insurers come up with your quote. No longer is it just a fact of keeping your record clean but, also your financial records!

2) Pay up front

You may find you can negotiate a nice discount with your car insurer if you pay the year’s insurance up front. While it may be a lot to pay out, now that you have improved your credit rating, you may find that being financially responsible has given you a bit of extra cash. What better way to spend it than sorting out a whole years’ car insurance and taking that worry off your mind. Don’t worry if for any reason you need to cancel or switch insurers during the year, by law your insurance company must reimburse you for any days you have paid.

3) Use one provider for all your policies

Certain companies, such as AXA Insurance offer more than just car insurance. It is an idea to try and have all your insurance policies, where possible, with the same provider. Not only can this help you develop your standing with your insurers but, there will be fewer different names and numbers to remember should you need to speak to them about anything. If you have cars under your name being driven by family members, it may also be an idea for you to insure all vehicles through one company as you may qualify for further discounts. You can obtain a bulk, wholesale type rate as the provider will want to keep your business as you are bringing in more of it.

4) Defend your driving

Taking advanced driving courses and even defensive driving courses can give you a nice discount to your car insurance quotes. Just check with the insurers how much of a discount you could get, so you can make sure the cost of the course is worth it. Make sure any course you sign up for is accredited so as to make it officially recognized by any insurer. Another thing to bear in mind is you may even be able to reduce any points accrued on your license having taken a defensive driving course or accident prevention course.

5) Increase your Deductible

Increasing your deductible by double can reduce your premium by up to 25%! If you are driving an older vehicle that has depreciated in value, it is worthwhile to have a higher deductible. If your deductible is $400, raising it to $900 could be worth your while as the savings you could make over a year could show you it was worth it. Make sure to shop around and ask your prospective insurer what they can offer you.

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Category: Car Loan

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