Statistics show that the policyholder submits a claim every 11 years. And when it comes to submitting a full claim, the policyholder only does so once every 50 years. If you drive responsibly, the chance of submitting a claim is probably less. Knowing this, you may want to find a way to save on car insurance.
Here are 10 things you can do to reduce the cost of your premium.
Get the cheapest car
The type of car and its safety rating will affect your insurance rate. For example, sports cars are incredibly expensive to insure. The cheapest car models are Chevrolet Spark, Citroën C1, Fiat Panda, Honda Odyssey EX-L, Hyundai Tuscon GL, Kia Sportage, Nissan Pixo, Skoda Fabia Hatchback and Summer, Smart Fortwo Coupé and Convertible, Vauxhall Corsa Hatchback and Volkswagen Fox and Up.
Consider increasing your franchise.
In case of a claim, the excess is the amount you are willing to pay before you let the insurance company cover the rest. You can increase the excess to reduce the cost of the premium.
Lose a collision and full cover if you insure an older car model.
Collision cover is designed to cover the cost of a car accident, while full cover basically covers everything that is not included in the collision cover. The aim is not to provide coverage that you don’t need.
Ask for other discounts, such as group insurances or cars equipped with anti-theft equipment.
If you are a member of a professional organisation, you can ask if you are entitled to a discounted car insurance.
Discounts for students and discounts for defensive driving courses can reduce your insurance rate. You can also get discounts if your car is equipped with anti-theft devices and safety devices such as motorised seatbelts and side airbags. Examples of anti-theft devices that can reduce your reduced price include car alarms, engine immobilizers and tracking devices. Engraving a VIN on glass can also give you a discount. However, some insurance companies that have high discounts also have high rates. It is a good idea to first focus on the insurance rate and then look for any discounts once you have decided on a specific insurance plan for the car.
Check the discount on mileage.
If your trip is short or if you only use the car occasionally because you prefer to drive, ask the insurance company for a discount. The less time a car passes on the road, the smaller the chance of an accident. The insurance company will treat you as a low-risk case and give you a discount.
Keep a good credit history.
People with a poor credit rating can pay up to 50% more for car insurance. Your creditworthiness is a crucial factor in determining the value of your premium.
Consider paying in full instead of opting for instalments.
If you choose to pay in instalments, you may have to pay high administration costs.
See if you can consolidate your insurance policies and get them from the same company.
The purchase of a group home and car insurance can provide a significant discount of up to 25% in some states.
Make sure there are no gaps in insurance coverage.
A short period of time can cause you to lose the discounts you want. The insurance company will use the gaps in your coverage to increase your car insurance premium, so always pay on time.
Just like a good credit rating, clean driving without complaints or traffic violations keeps your car insurance premium low. When you drive, drive safely and follow the rules of the road.