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Apr 19

Can’t Afford Car Insurance Premiums? Here Are 7 Things You Can Do

Reading Time: 3 mins

Car insurance premiums can be expensive. However, if you are savvy, there are multiple ways in which you can reduce the cost of your auto insurance.

Here are seven things you can do:

  1. Increase Your Excess
  2. Select Fully Comprehensive Car Insurance
  3. Consider PPM Car Insurance
  4. Carefully Consider Your Extras
  5. Keep Your Car Safe
  6. Drive The Right Car
  7. Avoid Making Modifications To Your Car

Increase Your Excess

The excess, otherwise known as car insurance deductible, is the amount of money that you agree to pay towards the cost of any claim that you make. So, if you choose to increase the amount of your voluntary excess, you will lower the amount you have to pay for your car insurance premiums.

When comparing quotes from different insurers, do some calculations with regards to the excess to see how much money you could save. If you do choose the option of increasing your excess, just make sure that you do not increase the excess by more than you can afford to pay.

Select Fully Comprehensive Car Insurance

When you take out fully comprehensive car insurance, you get a higher level of coverage in comparison to getting only third-party insurance or third-party, theft, and fire insurance.

You may think that fully comprehensive insurance is more expensive, but in fact, it is often the cheapest option. The reason is this: insurance companies know that people who take out less cover generally make more claims.

So, by getting fully comprehensive insurance, you could lower your premiums.

Consider PPM Car Insurance

Safe drivers can get more affordable car insurance, but it takes years to prove that you are a safe driver. An alternative way of proving to your insurance company that you are a safe driver is to get Pay-Per-Mile insurance, commonly known as PPM car insurance.

It involves installing devices so that your insurer can track your driving behaviour and mileage. Safe drivers who log fewer miles can get cheap car insurance compared to drivers who do not allow their driving to be tracked.

So, when shopping around for quotes from different insurance companies, see if they offer PPM insurance.

Carefully Consider Your Extras

When you compare car insurers, you should check whether extras are included as standard or whether you need to pay for the add-ons. You may not need all extras, like courtesy car coverage, windscreen coverage, and legal coverage

Therefore, you should spend time looking at exactly what is covered by an insurance policy and which add-ons you have to pay for. You can then determine which extras you actually need and save money.

Keep Your Car Safe

When you can prove to your insurer that your car is safe when you are not driving, you can lower the cost of your car insurance. So, you can reduce insurance costs by keeping your car in a driveway or inside a locked garage; because it means your vehicle is less likely to be stolen or vandalised.

You can also add security devices like immobilisers, alarms, and tracking devices to reduce the cost of your insurance.

Drive the Right Car

If you consider the type of car you drive before you begin comparing car insurance quotes, you could make significant savings on the cost of your insurance. Different makes and models affect the price of auto insurance.

Insurers classify models and cars into various insurance groups. The less powerful and cheaper makes and models cost less to insure and vice versa.

Using the different classification groups and other factors, insurance companies determine the premium you pay. You could dramatically lower your premiums if you choose to drive something like a sedan instead of a luxury car. 

Avoid Making Modifications to Your Car

Following on from the last point, cars that have modifications typically cost more to insure. That is because when you make modifications like upgrading your engine or adding alloy wheels, you make your car more attractive to thieves.

The cost of fixing vandalised cars with modifications can also be higher than standard vehicles. So, if you want to get cheap car insurance, you should avoid making modifications to your car.

The Takeaway

You now know of several ways in which you can lower the cost of your car insurance. Consider each option carefully to determine which avenues are viable. Then, when you start comparing different insurance providers to find the best quote, make sure you tailor your search with your specific requirements in mind.

At the end of the day, car insurance premiums can be affordable. You just have to approach things in the right way.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. 

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