Top Tips To Ensure You Are Not Paying Too Much For Motor Insurance
You have just found your dream car with a full-service history, but the costs for insurance are about to take a large chunk from your budget.
Insuring a car is one of those absolute necessities. But when you are not careful, this could end up costing you a fortune to start driving your new car. Here are a few tips you can use to make sure you are paying the right price for your motor insurance
Choose The Correct Car
Before you decide on a car to buy, check on what type of insurance category it will fall under, as this has the most significant bearing when it comes to the cost of the policy. Cars with enhanced security features and smaller engines cost a lot less when it comes to insurance when compared to sporty, souped-up, and powerful engines.
Compare Prices
This is probably the best way to find the best deal on an insurance policy. You can use a car insurance comparison service online, but just ensure that you compare like-for-like. If it sounds strangely cheap, make sure you check on the fine print before you decide to go ahead.
Limit How Many People Drive Your Car
The more people that are named on your policy, the more it is going to cost. Only stipulate exactly who is going to be driving the car. It is possible to add more names at a later stage when needed. Drivers that are younger will drive up the costs. If you have only recently acquired your driver's license, you can include a driver that is more experienced to save a bit of money.
Increase The Voluntary Excess
If you agree to pay more for costs relating to accident repairs this reduces the insurance premium price. If you are in an accident and you are "not at fault", you can always claim your excess back at a later stage. Avoid setting a high bar, particularly when the car is low in value.
Use The Correct Job Title
Elevating your job title could end up costing you dearly. For example, an office manager is paid a lot more than an office administrator. When possible, try not to use your motor vehicle for work. The policies that cover pleasure, domestic, and social, are always cheaper. At the same time, you must reveal how you plan to use the car or the cover may become invalid.
Drive Less Miles
Driving fewer miles translates into fewer accidents, which results in cheaper policies. If you agree to a 12,000 mileage annual cap, you can expect a discount of around 5% to 10%. This can be helpful if your partner or anyone else in your home has a car, where you are sharing the mileage. But rather be accurate and honest to prevent jeopardizing any claims.
Make Sure Your Car Is Secure
If you keep your car behind a locked gate or in a garage the premium will be lower than parking your car on the side of a road, since the risks of theft or another car hitting your vehicle is significantly reduced.
Have A Black Box Installed
Black boxes are devices that insurance companies install to monitor the way you drive. Not everyone likes them, since some request curfews, which means when the car is not in use. Installing one of these devices can dramatically decrease the overall cost of your car insurance, especially for younger drivers.
Pay Up-Front
If you agree to monthly installments this may seem like a more affordable option, but it does mean that you will end up paying more, with a higher interest rate. If you can use a 0% interest credit-card to cover the costs upfront.
Haggle
Ask the company you are dealing with for a discount, most will be happy to, since they want your business. Some ideas include asking for an "introductory" discount. You might be eligible for this type of discount even when you are not backed by a "no-claims" discount, but you have been driving a company vehicle.