We all know that insurance is for the what-if moments in life. It is there to protect us if something goes wrong, but that doesn’t mean that everyone likes to pay for it. Depending on what you need the insurance for, it can be incredibly expensive, too!
You might be tempted to head straight to a single comparison website and take the cheapest options – but that can often lead to a lot of frustration later on.
You might be surprised that while it is easy, letting your insurance automatically renew could mean you are spending a lot more on your car or bike than you need to.
What can you do to hammer the price of your insurance down?
Share The Policy
If you live with someone with more years of experience than you in driving, it is possible to have them on your policy. It can considerably reduce your premiums, especially if you are a new driver. It is important always to state who the main driver is, though, because it is fraudulent not to and can invalidate your cover.
In most cases, you can also add someone to your motorbike insurance policy, but it is a good idea, just like with a car, to shop around for the best motorcycle insurance quote.
Extra Lessons
Passing your test is great, but insurance for new drivers is notoriously high for a reason. New drivers under the age of 25 are in the highest risk category for accidents while driving. While you won’t knock the premiums down a huge amount, taking extra safety courses, highway driving courses, or any other advanced driving can make a difference.
It is worth noting that some insurance companies will disregard these courses, so it is wise to check which companies do and don’t and whether the reduction is worth the cost of the course (only if you weren’t going to take it).
Telematics
Although there are a lot of drivers who don’t like the fact these exist, for safe and conscious drivers, they can be rewarding. Telematic insurance is based on actual data that is transmitted from a black box to the insurance company. They can calculate how safe of a driver you are and base your insurance on that.
Telematic insurance rewards safe drivers, can be used for proof in the case of an accident (speed measurements), and can even help you find your car if it gets stolen.
Parking
Where you park can have a significant impact on how much you’re going to pay on your insurance. For example, cars that are parked in a garage on the property of the home are cheaper than those that are parked on the street outside.
It can be beneficial to look for a garage that you can rent – and see if that will impact your overall quote. The safer the space is considered, the cheaper it will be because your vehicle is less likely to be broken into.
Cover Type
The cover type that you should take can be based on the type of car you have. Older cars that aren’t worth much could be better covered with the lowest policy, while anything new or worth any amount of money is better with more comprehensive insurance.
Keep in mind that there are drawbacks to opting for less coverage; any serious accidents could leave you in financial ruin. You almost certainly won’t be able to afford repairs after a minor accident, the deductibles can be incredibly high, and because the company isn’t great – you might get very poor customer service too.
So carefully consider what the best option is for you.
Payments
Paying monthly usually has an extra cost, while paying annually is an upfront lump sum. Monthly payments are usually more affordable for most people, but if you are able to pay annually, you can see a significant reduction.
Some people pay for the year on a credit card and then split the payments up into smaller chunks this way (it only works with a 0% credit card, though).
Mileage
The more you drive, the more likely you are to have an accident. It comes down to that you are on the road more, so your odds are higher than someone who only drives once a week.
Consider how many miles you are really going to drive, and enter that on your insurance quote form. Keep in mind there are some allowances, but if you go over by a large percentage, your insurance will become invalid.
Are you considering a new car soon and already scoping out insurance? Check these: Top Car Brands To Consider For Your Next Car.