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Oct 31

Seven ways to reduce your car insurance costs

Reading Time: 2 mins

Car insurance can mount up easily and even with a good deal, can still end up costing you more than you would like it to. There are some smart ways that you can reduce the costs of your car insurance without compromising on your coverage. 

  1. Shop around for the best deals. Never just take the first quote you come across. Call companies for quotes directly, or use online comparison tools to find a good deal. Get quotes from a variety of places, and remember to check prices with companies who aren’t on the price comparison sites as these can sometimes be cheaper. Some insurers will sell through independent agents, so check here too. Ask your friends and family for their recommendations too. If you get a good quote, but prefer a different company, you may be able to use the lower quote to haggle a little. 
  2. Before you buy a car, compare insurance costs. Some cars will cost more to insure than others, so if you’re buying a new car, do some research into what it will cost to insure before you set your heart on a particular vehicle. The safety record, cost to buy, cost to repair and the likelihood of theft of car all change the insurance value. Some insurers will offer lower prices if the car has anti-theft and other safety features. 
  3. Reduce the coverage on older cars. If you have an older vehicle, you could consider dropping collision or comprehensive coverage. If your car is worth less than ten times the insurance premium, paying for extra coverage may not actually be worth it. An auto dealer can value your car, and then review your coverage at renewal time to see what you still need. 
  4. Buy your home insurance and car insurance from the same provider. Many insurers will offer a discount if you buy more than one kind of insurance from them, or even if you insure multiple cars with them. You can also get discounts as a long-time customer, so shop around and see what deals and advantages you can get from different companies. 
  5. Maintain a good credit record. Good credit history can reduce your insurance costs, as most insurers will check your credit report before offering you coverage. Protect your credit rating by paying bills on time, avoid taking out any credit deals that you can’t afford, and keep your credit balance low. 
  6. Take advantage of low mileage discounts. If you don’t drive very often, you might be lucky and find that you can get a discount for putting a low average mileage on your car every year. These discounts can sometimes be applied to people who use a carpool to travel to work too. 
  7. Look into group insurance. You can get some great deals if you insure through a group. Some insurers offer plans for employers to group ensure their staff, or for alumni groups or other memberships. Splitting the cost brings the price of insurance right down.

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