There are many things that determine the amount of insurance premiums you pay, but one thing is certain; insurance premiums are going up. You probably pay hundreds or even thousands of dollars a year in car insurance. But you might be interested to know your insurance rate is dependent on many factors including your insurance company, your age, your driving record, the kind of car you own and drive and even where you live.
Even though car insurance is expensive there are few drivers who feel comfortable without it. Third party car insurance is necessary for all registered vehicles but this type of cover only protects other drivers in the event of an accident. It doesn’t cover your car or you. To get this kind of cover you have to pay extra.
It’s important to have a good understanding of insurance and car insurance companies to make sure you get a policy that doesn’t wipe out your income entirely. With this in mind let me share with you 4 tips to saving on auto insurance. In some cases you will save hundreds of dollars.
The first thing you must always do is compare policies. Some premiums can differ from comparable cover by hundreds of dollars. You have to shop around and get several quotes before you commit to a policy. In some states your state insurance department can be of assistance. Where insurance is state regulated the department will have information available about the kind of coverage you can get and the rates you can expect. Then you should start talking to friends and family about their cover. There are also lots of online consumer resources about insurance companies and policies for car insurance. Some even compare different policies so you can see straight away where you can save.
Besides cost there is also a very important service element associated with choosing insurance. Not all companies respond in the same way when you make a claim. This is very important. You don’t want to have to fight to get a broken taillight fixed. You want action. So after you have narrowed down your choices to the three best go and approach these insurance companies and talk with them about what they are willing to offer you service wise.
Yet another way to save on car insurance is by increasing the amount of your pre-claim excess. This is simply the dollar value you’ll have to contribute to the cost of any repairs. Usually it starts at about $200, but you could have a $0 excess on some policies as standard. Increasing your excess means your insurance company will charge you less in premiums. In some cases you could save 25% here.
Removing certain optional extras from your policy you are going to save even more. Some insurance companies and policies are more flexible than others. Generally, however, you can remove such things as property theft, accidental damage, collision and uninsured motorist benefits.
Tailoring your car insurance policy to your individual circumstances is something everyone can do. Don’t be satisfied just to take the policy off the shelf. This is always the most expensive option. You need to compare price, service and extras to get the best deal on your car insurance. If you do you are going to find your premiums are much more manageable.
James Spacey writes about a variety of topics including high performance car insurance and learner drivers car insurance.. This article, 4 Tips To Pay Lower Motor Insurance Premiums has free reprint rights.