5 Top Tips to Save on your Car Insurance

By Farzana Chaumoo

 

Tips to help you save on your vehicle insurance premium.

As much as you feel your insurance premiums are burning a hole into your pocket, there is a way to save on your premiums.

Here are some tips on how to reduce car insurance premium:

1. Be a Good Driver

With the availability of all sorts of tracking/monitoring devices and information that can be used from mobile applications, your car’s system and plug-in devices, negligent driving can easily be picked up today.

If you’re a good driver, allowing carriers/applications to monitor your driving behaviour can work in your benefit.

It really doesn’t hurt to follow the rules of the road and be a cautious driver. Being a good driver can get you a discount on your premiums, as well as, avoiding accidents and traffic fines.

2. Claim your discounts

Insurance companies offer a range benefits which include discounts. Prices and discounts will differ between new or used cars, the vehicle’s safety features, whether you’re a student or a pensioner, whether you’re accident free, your driving history etc.

You can also group your house and car insurance together for a discount.

Contact your insurance company to find out if there is any additional discounts you can benefit from.

3. Compare Prices Annually

You shouldn’t settle for the first quote you get. Compare your existing rate with other companies annually as different companies evaluate risk differently.

You can easily do it online in a matter of minutes. This will ensure you are paying the best rates, so put those shopping skills to work!

4. Improve your Credit

It is important to manage your debts and accounts carefully. Some insurance companies will calculate your premiums based on your credit score. The better your credit rating, the less risky you are perceived to be.

In order to better your credit rating, you should:

• Limit the number of credit cards you apply for
• Pay your bills on time
• Refrain from becoming reliant on your credit card
• Don’t get too close to your credit limit

5. Drive a safe car

Cars with good safety features that include ABS (anti-lock brakes), airbags, tracking devices, and the like is likely to get a better insurance rate. What will you help when car-shopping is also finding out how much a car’s insurance will cost before making the purchase. Vehicles that are safer will usually cost less to insure.

Pro tip: Installing a car alarm can lower your insurance premium