- Posted 22 Oct
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Owning a car comes with a lot of different expenses: Maintenance; Fuel; Loan Payments; and, of course, Insurance. Reducing your commute and car pooling can help lower fuel costs, but maintenance and loan payments stay the same. With insurance, you have many options for keeping the costs down, provided you carefully manage your risks and cover level.
Before giving you a quote, insurers collect information about potential risks and expenses.
These are a few of the things they look at when offering you a quote.
- Type of vehicle – The more expensive your car is, the more expensive it will be for your fund in the event of an accident. Domestic cars, without any modifications, often come with the cheapest insurance.
- Driving record – A clean driving record can do more to lower your insurance cost than almost anything else. Good drivers don’t get in accidents, and insurance funds reward them with lower payments.
- Where you live and garage your auto – A vehicle that spends most of its time in a protected environment is less likely to be stolen or vandalised. The safer your neighbourhood, the less expensive your car insurance.
- What you use your car for – If you drive for work, you might have higher payments, since you will be on the road more often.
Coverage Options that Reduce Costs
Many of your risk factors are beyond your control, but you can take control over the level of coverage you choose. You can also make some choices about who will use your vehicle that will help insurance funds offer you the best rates.
- Declare a no novice zone – By restricting the people who can drive your car to those at least in their thirties, you can avoid higher rates due to inexperienced drivers.
- Increase your excess – This will cost you more if you get into an accident, but if you have a good driving record, you might want to take on the extra risk. This usually lowers your premium.
- Add an alarm – The more protection you have on your vehicle, the less protection your insurance fund needs to offer. If your car has an alarm or immobiliser, the risk of theft drops dramatically.
- Brand new comes with a cost – The less expensive your vehicle is, the less expensive it will be to insure. A brand new car comes with a hefty insurance premium.
Before deciding on a specific insurer or insurance package, be sure to shop around. Online quoting allows you to compare prices in minutes. Different insurers focus on different drivers, so finding one that caters to your needs can dramatically affect your premium price.