Car insurance is an annual burden that every driver has to bear, and yet you can make huge savings in an instant if you are savvy to some of the tips and tricks of cutting the costs of automotive cover.
So what are the strategies that lead to significantly cheaper car insurance? Here are a selection of the top options to try yourself.
Use comparison sites to find the best quotes online
This market is very competitive, so to get cheap insurance you just need to compare the quotes from as many mainstream providers as possible.
In the past you’d have needed to rely on a broker to do this for you, or spend hours contacting insurers separately. Today, online tools make it a breeze to get quotes and make comparisons of rival packages from the comfort of your home.
What is more, you don’t even have to wait for your current policy to expire before you compare premiums.
A quick check right now will let you know whether you are overpaying, and while there may be fees to cover if you leave your existing insurer early, they could be eclipsed by the potential savings, so there’s no reason to put this off.
Change your car
It goes without saying that different cars cost different amounts to insure, and on a very basic level you can expect to pay more to cover an expensive and speedy vehicle, and less to cover a low-powered family car.
However, there are lots of other variables at play when calculating insurance costs, and the features of a vehicle, as well as the make, model, age and type can all determine the price you’ll pay.
For example, safe vehicles are seen as a lower risk prospect, as are cars that are less desirable from the perspective of a thief. So if your car is unsafe and long in the tooth, it could be more expensive to insure than a newer, more secure equivalent.
Boost your credit score
It might seem unfair, but people with poor credit are also lumbered with higher car insurance premiums in most states.
This again comes down to risk calculations carried out by insurers, so if you take action to improve your credit score, you’ll see your premiums come down overnight.
Keeping up with loan repayments, closing unused credit card accounts, remedying any inaccuracies on your credit report and other steps will not just let you access cheaper car insurance, but will help with every other aspect of your finances as well.
Drive less often
The less you drive, the cheaper your insurance will be, because you are mainly an insurance risk when you are behind the wheel and out on the open road.
Obviously it may not be practical to drive less if you need to use your car to commute. However, the main thing to do is to be accurate with the reporting of your anticipated annual mileage when comparing quotes. Don’t overestimate how much driving you’ll do, and you could trim down the prices you’re offered.
Combine insurance policies
If you own more than one vehicle, there are multiple drivers in your household, or you need other types of insurance to ensure financial stability, getting car insurance as part of a bundle could work out.
Multi-vehicle policies, or packages which include car insurance and home insurance rolled into one, are often cost-effective. However, you still need to compare these packages carefully against one another, as online comparison is your ultimate tool in the search for cheap insurance.