Reducing the Cost of Your Insurance

Car insurance companies base their premiums on wide variety of factors, and while you may not be able to change all your circumstances to fit their profile of a perfect driver (well, not unless you want to move house or change gender), there are many things you CAN do to reduce your premiums. Try a few of these handy tips for starters:

Do Your Homework

Make sure you shop around; although it can be time-consuming to repeat your details to several providers, you could save a great deal of money. You can also use your new found knowledge and bargain with your existing insurance company to see of they'll match a lower quote from elsewhere.

Voluntary Deductibles

If you are prepared to pay higher deductibles should you need to make a claim, you will receive a discount on your premium; the higher the deductibles, the greater the discount. However, it's worth finding out what compulsory deductibles the insurer might apply on top of this voluntary amount; for example, young drivers may have to pay $500 age deductibles on top of their voluntary deductibles.

Named Drivers

Adding an older, more experienced person to your insurance policy can cut your premiums dramatically. However, parents should beware that adding their children to their own policy will do exactly the reverse.

Make sure that you only add drivers to your policy that regularly use the car, and do bear in mind that 'any driver' policies and policies with more than two named drivers tend to be expensive; you may want to think about adding drivers temporarily to your policy if they do not use the car regularly.

Security

Adding an alarm or immobilizer to your car can lower your insurance; the amount will depend on its security rating. You will often pay less if your car is ept in a garage overnight or if it is kept in a secured, CCTV controlled parking lot, rather than on the street.

Annual Mileage

The fewer miles you drive, the cheaper your cover; however, do not underestimate your mileage as this may cause you problems should you need to claim.