Car insurance is a necessary cost for car owners, yet sometimes the cost of the premiums feels like a punishment rather than security. Yet the risk of driving without at least liability insurance isn’t worth the risks. Therefore, before taking out a new policy, it pays to consider how you can reduce your premiums without getting in trouble. The following suggestions will help in your quest for cheaper vehicle insurance.
Pay Up Front
Many insurance providers add additional monthly fees to policies for things like making payments and sending paper bills, as well as interest on the outstanding balance. If you can pay for the whole year upfront, these fees disappear, reducing the policy’s overall cost. Ultimately both sides win here, as the insurers want the money upfront, and you want to save money.
Occasionally everyone slips up and makes a mistake, even car drivers. It can negatively impact your insurance premiums if you’ve found yourself erring behind the wheel and getting a ticket. If you fight a traffic ticket in Edmonton, the consequences to your premium are reduced, ensuring the cost doesn’t skyrocket on renewal.
Pay Per Mile
PPM policies are excellent if you only regularly drive short distances as you pay per mile rather than a lump sum. Companies that offer this service install a device in your car that keeps track of mileage used and bills accordingly. Typically, if you go fewer than 10000 miles per year, this option is more economical than a traditional vehicle policy. With more people remotely working much of the time, they’re no longer paying for the days the car stays home.
There are several things considered when an insurance quote is put together. However, unlike your age and years of experience, your choice of vehicle is a factor you can change immediately. Therefore, if you’re looking to purchase or hire a car, consider what impact various models will make on your policy. An expensive sports car that has high-speed capabilities will attract a higher insurance price than a reliable midrange runabout.
The old adage that it’s the other drivers on the road who are the problem is true to an extent, but that doesn’t excuse unsafe driving on your behalf. The easiest way to ensure insurers look favorably on your policy price is always to drive safely. You’re better positioned to avoid becoming involved in an accident where another driver is at fault, and you’re less likely to cause an accident. New drivers will have a high expense as they have yet to prove a safe driving record, but with more experience they will benefit from reducing premiums.
There are many areas of life that it’s advisable to purchase insurance. Many insurance companies recognize this and offer a discount for bundling them together. Investigate whether having your home insurance and vehicle insurance with the same company can get you a sweet deal.
No Claims Bonus
Companies offer a no-claims bonus that increases every year you stay with them and make no claims. Until recently, this has worked as a wonderful deterrent for people considering switching insurance companies. However, some companies now offer to honor your existing no-claims bonus if you change to them. Shop around and find out if any companies have this offer and if they can give you a better deal than your existing insurance providers.
Another way to lower insurance premiums is by opting for a higher deductible amount. A deductible is an amount you agree to pay upfront before the insurance kicks in and covers the remaining costs. Taking this option is a gamble because you’re unfortunate enough to require a few minor repairs you could potentially end up paying out of pocket multiple times without insurance ever kicking in. However, if you have the funds to cover this or are confident you can avoid minor damage, it could result in dollars in your pocket.
Undoubtedly the best type of coverage is comprehensive coverage, as you’re covered for all eventualities. Third-party insurance is the cheapest and legally required option in most states. A third-party policy only covers damage to the other vehicle and its occupants in the case of an accident.
As a responsible car owner insuring your vehicle is vital (and usually a legal requirement), but it can be an expensive endeavor. Safe driving and careful consideration of vehicle and policy choice can help reduce the cost of your policy, leaving more money for other things.