Tired of having your money extorted by greedy car insurers?
Car insurance can be a great help in the event of an accident, but many of us can end up paying much more to have this protection than we ever get out of it. Learning a few cost-cutting tricks could help you to beat the insurers at their own game and pay a more reasonable amount. Here are just seven tricks to help you pay less.
Don’t just stick with the same insurer out of loyalty – loyalty perks and no claims bonuses are rarely ever worth protecting. Many insurance companies provide cheap rates to new customers, which can be better than any loyalty rate. By constantly changing providers every couple years, you can continuously take advantage of these new customer rates. Use comparison sites to find the best rates (don’t be afraid to phone someone up and get a quote too – you may even be able to negotiate the price).
Pay annually, not monthly
Most people pay monthly in smaller instalments because it’s easier to manage. However, insurers often charge less proportionately to those that pay annually (one annual payment is often the equivalent of eleven monthly instalments – so you could be getting a whole month free by paying annually).
Raise your deductible
Your deductible is the amount you’re willing to pay out of your pocket in the event of an accident before your insurer steps in. Raising this amount can often make your rates cheaper, however be prepared to pay more towards reparation costs in the event of a claim.
Use off-road parking
Parking on the curb can put your rates up considerably compared to parking a driveway or in a garage. This is because you’re much more likely to get hit by a car or vandalised whilst parked on a road. Not all homes come with the option of off-road parking, but if you do have this option make sure that you take advantage of it.
Keep your license clear of points
Collecting points from speeding and or getting parking fines can sometimes have an impact on your insurance rates. In these situations, it could be benefit you to take a driver improvement course online. These courses can allow you to dismiss points, which could lower your insurance rates in the long run.
Keep a good credit score
Your credit score also affects your insurance rates. Having a bad credit score may even prevent some insurers from taking you on as a customer. A bad credit score is often the result of bad spending such as missing bill payments or having lots of debts. By cutting your bad spending habits and using a credit-building scheme, you might be able to repair your score and lower your insurance rates.
Make use of membership discounts
Being a member of certain driver’s unions and associations could entitle you to discounts on your insurance. It could be worth joining one of these groups to make use of this discount – just make sure that the membership fee is worth the reduction in your insurance rates.