5 Tips To Cut Down On Car Insurance Costs

Posted by at 31 January 2018, at 22 : 20 PM

5 Tips To Cut Down On Car Insurance Costs

Are you worried that you’re paying too much for your car insurance? Did you recently get a new car and are looking for the best insurance cover? Here are a few ways to help you cut on insurance costs.

Third Party Isn’t Always The Cheapest

Car insurance is categorized into fully comprehensive, third party fire and theft and third party only cover. Ideally, third party insurance is considered the cheapest for the young drivers since it provides a less level of cover than fully comprehensive but that’s not always the case. However, insurance providers assume that anyone applying for third party insurance is actually a higher risk. Therefore, don’t assume that third party cover is always the cheapest.

Add A Second Responsible Driver

Although adding a second driver to your cover will push up the costs, it can also reduce it if you know what you’re doing suggest Money Expert. For instance, if you add an older member of your family to your car insurance cover, especially if you’re a younger driver, you should expect a reduction in the premium costs. Keep in mind that car insurance is all about risks. If you’re a high risk driver, you can add a family member who is a lower risk as a second or third driver on your cover. It will reduce the average risk and the premium payments considerably.

It’s a good trick that can be used by anyone not just limited to young drivers. Keep in mind that young drivers are automatically identified as high risk but it works for anyone, especially those with a costly insurance policy. If you have a good driving history, the risk is considerably lower and that will have a better impact on your car insurance policy. If you have a good driving history, you can save a lot of money but with a second driver with a lower risk, your payments will be cheaper. It’s illegal for insurers to discriminate because of gender but driving experience, history and age should be considered for anyone applying for car insurance. It’s simply a trial and error method that doesn’t apply logic.

For instance, adding your mother to your insurance might increase the cost while adding your brother reduces it and vice versa. You should try different quotes with varying second or third drivers to see what happens because different insurers will have a different response. That’s why you need to check insurance quotes on comparison sites. When choosing a second driver, make sure it’s someone who can reasonably drive your car. Don’t choose race car drivers or add someone as a main driver if they aren’t because it’s considered as fraud. If caught, you might face a criminal conviction upon which your insurance policy will be voided.

Always Minimize Your Risk

Regardless of your age, your insurance premiums will depend on 3 factors which are the insurance provider, the level of cover and your risk level. Car insurance premiums are determined by actuaries who have the responsibility of calculating risk. Therefore, you can save a lot of money by proving to the insurer than you’re not a high-risk driver, despite your age. The price set by the insurer depends on the underwriter’s assessment of your specific situation and the pricing model that signifies the clients the insurer is looking for.

Inform The Insurer About Special Circumstances

Do you have any special circumstances that might affect your premiums? For instance, have you made a claim in the recent past? Do you have a modified car? Do you expect to drive at least 100,000 miles every year? You need to inform your insurer. If you fail to do so, when you make a claim, even for an issue not related to the previous circumstances, your policy will be deemed invalid.

If there are any changes to your policy, even as minor as the change of your address, you need to inform the insurer because it reduces the chances of issues with your claims. It’s hard to get a claim once your insurance policy is cancelled and is often expensive. As a matter of fact, you won’t be able to solve the issue for a long time and it might affect your future driving experience. You should also inform the insurer if you change your job because it also affects your risk. If you’re unemployed, your insurer should also know about it because you’re at a higher risk.

Don’t Pimp Your Vehicle

Adding a few modifications to your vehicle might be flattering but it won’t do well for your insurance payments. Any changes, except security improvements, will result in more insurance payments. If you have to do them, make sure your insurer knows about the changes to your vehicle since it might make your policy void.

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