How to pay less for car insurance (tips and tricks)

CAR insurance is one auto expense that you cannot get around. The bad news is auto insurance premiums can be quite pricey, especially when you are looking for a package which offers the best (or most) protection. Fortunately, one senior car insurance agent suggests that there are things that you can do to minimise the burden on your wallet without ‘cheapening out’ on your premium and lessening your coverage. He shares some tips on how to achieve this below.

Use up your no-claim bonus

As it relates to no-claim discount, it’s only applicable once the person has insurance before and it’s continuous. How it works is that once you are a claim-free driver with current insurance every year, and not having any accidents, you earn a percentage off.

Restricting your policy to a named driver

Restricting your policy to a named driver or drivers will see you paying less. The reason for this is that it provides a sense of security to insurance companies that the risk is not a bad one and it also reduces the limits of liabilities.

You have a good/safe driving history

Some insurance companies look at the person’s driving history when calculating their auto insurance premiums. So they will look at how long the individual has been driving or rather has had their driver’s licence and they would give a safe driver discount. Of course, this benefit is only applied if you are claims-free. So, if you have an accident, you have to be not at fault.

Discounts for anti-theft devices

Having a tracking device or a dash camera on your vehicle can assist with lowering your premium. These are automatically discountable accessories. However, if you are on a budget, before investing in the most expensive available anti-theft technology you might want to inquire just how much of a discount you qualify for just so you don’t end up paying much more than you had bargained for.

Go for cars with lower theft risk

Cars such as Nissan Ad, Tiida, Wingroad, Succeed, Lafesta, Toyota Wish, Fielder and Corolla (station wagon, especially) are among the most commonly stolen cars on the local scene primarily because the car and or their parts are easily resellable. If the vehicle you are purchasing falls in the high-risk category, then the additional premium will be charged based on this factor.

The type of car you have can also influence prices

The insurance premium that you will be required to pay depends on your vehicle of choice. For example, you will be required to pay more for a luxury SUV or other high-end vehicle than you would for a smaller (but safe) vehicle such as a Honda Fit. So if you haven’t bought your vehicle just yet, inquire about insurance prices if you don’t want to spend too much.

Your vehicle does not have excessive modifications

Vehicles that have received major modifications such as those with turbochargers and/or convertibles will attract a higher premium. So if your vehicle is not making you some money as is the case of people who use theirs for racing purposes, and all you use your car for is your regular day-to-day activities, then you could save some money by doing away with these.

Group your insurance policies

Having all your assets such as auto, home and business (where applicable) insured at one insurance company can be quite beneficial because the company generally offers a multi-line discount, which will reduce your premium.