Oct 12, 2017

A common mistake that most car owners make with regard to their personal finances is simply accepting their insurer’s renewal quote. The insurer might take advantage of that trust and quote you higher rates. Here are some tips on how to get the best premium for your car insurance:

1. Upfront Payments

Not many people are aware of this fact, but a lot of insurance companies charge interest on your payments if you spread the cost over the year. If you want to avoid the extra interest charges than try and make payments up front. 

2. Buy an Older Vehicle

As a general rule the, the newer and fancier vehicles come with the more expensive insurance coverage regardless of the fact that you may be covered by a ‘liability only policy’. The odds are the coverage charges of, let’s say a brand new Audi coupe, would be higher than those of a five year old, but well maintained Toyota Corolla. From an insurance salesman perspective the Corolla would be more likely to be driven more responsibly, therefore it would have a lower risk of an accident. 

3. Always Maintain a Clean Driving Record

If you have been involved in many accidents, DUI cases and have a lot of driving violations, the insurance company might refuse to provide you with insurance outright or alternately, it just might charge a very high premium. This is because the insurance service provider considers you a very high accident risk and is covering itself accordingly.

4. Keep your Annual Mileage Low

The primary concern of any insurance automobile insurance underwriter is if you are involved in an accident, they would have to provide the money to repair/replace the vehicle/s (and in case of personal insurance medical expenses as well). 

This is why the crucial element under consideration would be how much you drive. If your vehicle remains stationary most of the time than your risk factor would not be high from the point of view of the insurance company.  The less you drive, the less the risk of an accident and therefore the less the premium that you would be charged.  

5. Shop around for the Best Deals

You can potentially save hundreds of dollars if you shop around when it’s time to renew your automobile insurance cover.

However, it is pertinent to note that when you compare premiums you do so for ‘like-for-like cover.’  When shopping around for car insurance, you must always make sure of what exactly you are comparing.  Some policies may be less expensive and therefore may seem more attractive than others but on the flip side, they may not have the same level of coverage as your previous policy. It is better to understand your policy thoroughly before hand than when you have to make a claim.  You must always read the ‘small print’ and be aware of each and every aspect of your policy. Some cheaper policies may gloss out many areas they don’t cover. This is why it is always better to read the policy documents side by side and to ensure that you aren’t being ‘taken for a ride.’ 

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