If car insurance rates were standard across the board, there would be no need to compare insurance companies and their policies. Prices vary according to insurer and the risk of the client. By leveraging your risk (that is, taking more risk on yourself) you can reduce your car insurance premiums without reducing your cover, even with direct insurance providers.
Direct insurers offer standard policies, making redundant the need for a broker. That said, you can adapt your insurance policy to suit you. The following ten car insurance tips can help you save on monthly premiums or protect you from costly mistakes
1. Insure your car before you drive
When purchasing a vehicle, make sure it is insured before you drive off the showroom floor. If anything happens before your insurance policy is in effect, the insurer will repudiate the claim. If the car is financed, the financier will require that it be insured before you take delivery. Get this sorted before collecting.
2. Insure you car for its purpose
If a car insured for private use is in an accident while being used for business, the insurer won’t process the claim. If you use the vehicle to get to and from work, but not at work, it’s considered private use. Everything else is business. It’s more expensive monthly, but could save you the loss of you vehicle if not covered accurately.
3. Improve your vehicle’s security
An insurer will make this compulsory, but adding extra security to your car will lower your monthly costs of insurance as the risk of theft is reduced. Immobilisers and tracking devices must be of a certain level before being acceptable to your insurance company. Confirm with them.
4. Increase your excess
As excess is the insurer’s way of mitigating the risk, increasing these places more risk on you, thus lowering the insurance premium. When doing this though, make sure not to increase it to an unaffordable rate as this makes void the purpose of owning insurance.
5. Get old and go slow
Older drivers pay less for insurance. Be sure to inform your insurer when you reach the age of 25 as your premiums decrease. Further, slower cars (that is, non-sports cars) are cheaper on insurance as they’re less risky. Consider this when purchasing your next vehicle. (Sports cars also have expensive parts, which is one of the larger components of your insurance premium.)
6. Specify regular driver
Specifying that you are the regular driver of the vehicle does not mean that others cannot drive your vehicle. (The insurer allows other drivers with the regular driver’s permission.) It lowers the risk of accident if there is one regular driver of the vehicle.
Get to know your car insurance terms and conditions and exclusions in your policy document. This will help you avoid contravening your part of the contract, which will ensure that your insurer does not repudiate your claims.
7. Know the terms and conditions
Comparing car insurance quotes is also a great way to lower your premiums. Not all insurers calculate their risk the same. Where one insurer will consider you high risk according to general demographics like age, others calculate risk on a person-by-person basis.