Last Updated on May 20, 2022
With the price of everything seeming to rise, many of us are looking for areas where we can cut costs. And with car insurance being one of the largest monthly expenses, this is one of the easiest ways to reduce the cost of your bills. Here are 7 simple ways to cut the price of your car insurance.
Switch Insurance Providers
The first thing to do when looking to reduce the cost of your car insurance is to determine whether you can find a cheaper policy with a different provider. Searching “cheapest car insurance Florida”, for example, can help you easily determine whether this is the case. Many insurance companies also offer additional discounts to entice you to switch.
Pay Attention to Mileage
Insurers determine the cost of your premiums based on your level of risk and cars have a higher chance of breaking down the higher their mileage is. To that end, trying to reduce your car usage can be a way of saving costs on both insurance and gasoline. However, it is important that you report your mileage accurately when purchasing insurance, as otherwise, your policy may be invalid.
Similarly, the lower your chance of having an accident is, the lower your premiums will be. As a result, some insurances will even reduce your costs if you take a safe driving course. Additionally, not claiming on your insurance will allow you to build up your no-claims bonus. If you maintain this over several years, the bonus can get as high as 80% for some policies.
Add Multiple Drivers to Your Policy
If you’re an inexperienced driver, you may find that adding someone with a long, safe driving record to your insurance policy can significantly reduce your premiums. However, it is important in such instances that you are honest with who the main driver is, as this can also invalidate your policy.
Purchase a Telematics Policy
In recent years, insurance companies have begun to offer lower-cost policies for drivers who agree to install a telematics box in their vehicles. Telematics boxes monitor your driving and record relevant data to send to your insurance company, enabling them to make more accurate decisions regarding policy claims and premium calculations.
Get Rid of Unnecessary Extras
A simple way to reduce your insurance premiums is to get rid of any additional coverage that you might not need. For example, switching from comprehensive cover to third-party cover can make financial sense if your car is particularly old or cheap. However, it’s worth considering that having to pay for anything out of pocket can be more expensive than paying the extra premiums for additional coverage.
Increase Your Voluntary Excess
Your excess refers to the amount of money you must pay for an insurance claim before the policy kicks in. Naturally, therefore, insurance policies will reduce your premiums if you increase the amount of your excess. This can be a good way to cut your costs if you don’t regularly claim on your insurance policy.