One of the things that makes your car a heavier burden in your living costs is the insurance premiums. Depending on your car’s model and specification, your driving history, age and many other factors, the price of insurance can fluctuate wildly.
This process of setting on a final price for insurance is not arbitrary, and all of these factors matter. This means that there are many things you can do as a driver and car owner/operator to reduce your insurance premiums both before you purchase a policy and while you are holding the policy. We hope this information will be helpful for you
In this article, we will share our 8 best tips on bringing your insurance premiums down, and thus making your car a bit less of a financial burden each month. The fully researched content was prepared for auto lovers by luxury car rental in Dubai. Enjoy reading!
1. Drive within the rules
The first way to ensure that you get a better deal on your premiums is to drive within the rules at all times. If you are fanatic about not breaking speed limits, running red lights or missing stop signs, then the result will be no tickets. A clean record means a better deal from the insurance company. Your heart will sink when you see just how much impact a single ticket can have on your monthly premium.
Drive Safely written on the road; Shutterstock ID 201941623; Project: –
2. Drive carefully and opt for telematics
Extending from our first tip, you should also drive carefully to avoid any accidents that will put claims upon your policy. Even a seemingly harmless fender bender can cost you dearly in the long run if you allow it to be claimed against your insurance. Traditionally, the benefits of safe driving would come to fruition at the annual renewal time, when a claims-free year would result in a nice cut in premium. Now there’s a better way.
Many insurance providers are offering drivers the chance to opt in for telematics devices, which monitor your driving and feed the data back to the insurers. Driving consistently well yields more immediate rewards, meaning you don’t have to wait until the end of the year to get a better deal.
3. Beef up built-in security
Your car’s on-board security measures are another key factor determining your price. Upgrading to high-level devices that are approved by the insurance company is a good way to get premiums lower. If your car is a high-end model, then the factory build will offer impressive security, but not so much for mid-level or lower models. A one-off investment in a better alarm of immobilizer can quickly pay for itself with cheaper premiums.
4. Keep the car in a garage
Street parking is another cause of fretting in the underwriters’ office at any insurance company. If they know that the car is kept on the street, and especially in areas with greater crime rates, then the premiums are certain to skyrocket.
Being able to put your car in a secure garage or other lockup may cost you some extra if it means renting a garage or a space in a secure parking garage, but once again this can be offset with savings from the insurance. What’s more, a better lock-up means your car is less likely to be stolen anyway, which means no claims on the insurance and even more savings in the long term.
Successful businesswoman walking to her car in underground car parking.
5. Simplify the car
If your car comes with a lot of bells and whistles, then it’s bound to have a higher insurance cost. The same can be said for brand-new car models. If you are considering a new car and are also concerned about spiraling insurance costs, then consider scaling back somewhat. A pre-owned car, or a lower specification can result in vastly lower insurance premiums.
A newer, fancier car is an attractive prospect, and you might have the wherewithal to buy one, but think about the fact that your first year will be prohibitively expensive when you factor in car payments and the insurance together. Is it really worth it? The car loses 20 percent of its value the moment you drive it off the lot? Why not tone it down, and enjoy the insurance savings as well as less of a depreciation trap.
6. Take an advanced driving course
In some places, there are advanced driving courses that test your abilities in various weather and road conditions. Investing in some lessons and passing such a course can be a ticket to cheaper premiums. Many companies will ask you at some point in an application or quote request whether or not you have any other driving certifications. This question refers to any certificate or proof of passing an advanced course like the ones we mentioned, among other things.
7. Stick with one provider
Customer loyalty means a lot in the world of insurance. If you can stick with a single provider, then the savings you can garner increase exponentially. The popularity of comparison sites often tempts people to change providers, which sometimes gives short-term savings, but since you are starting again with a new provider, may not deliver as a long-term strategy.
8. Don’t shy away from a bigger deductible
When asked about an acceptable deductible level, most will go for something like $250. It’s intuitive to keep that number as small as possible. People who would advise you to take the low deductible are clearly unaware that you can save up to 40 percent on your premiums by opting for a bigger deductible like $1,000.
It sounds like a lot, but what you can do is go for the bigger deductible, see your premiums reduced and then set aside a portion of those savings to go towards the deductible in the event of a claim. Doesn’t that make much more sense?
Lower premiums come with less risk-taking
At the end of the day, the best strategy for lowering your car insurance premiums is to be risk-averse. Avoiding risk means you drive more safely, not having accidents or at the very least not being at fault if an accident happens. Insurers will always offer the best deals to the lowest-risk candidate. It’s about creating a pattern of behavior of which insurers will approve.
Stay safe on the roads!