10 tips to save on your car insurance

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MCL InsureTech, which operates online insurance brands Its4women, BoxyMo and GetSetGo, has unveiled a list of tips and tricks to help you save money this year. Drivers who know the tips can save money on car insurance. If your car insurance needs to be renewed, there are a number of steps you can take to make sure you don’t pay too much.

1. Don’t use your car for business

Using your car for business increases the risk. In other words, the car is driven during the day when it would otherwise be parked. The longer the car is on the road, the more likely it is to be involved in an accident. Drivers using their car for work may also be carrying merchandise, samples or equipment that may be stolen and the additional cost to replace these items must be considered.

2. Build Your No Claim Bonus

The bonus-malus is the biggest discount on an insurance policy – earning the first year makes the biggest difference. This usually results in a significant premium reduction.

3. Pay your insurance upfront each year

Direct debit incurs additional charges for interest and setup fees. Full payment avoids this fee. Meanwhile, paying a deposit can also reduce the amount of interest charged as there is a smaller balance to add interest as well.

4. Increase the voluntary deductible

The excess is the amount you agree to pay for the cost of any claims you make on your car insurance. Choosing to increase your voluntary deductible can reduce the amount you pay for your insurance premiums. However, the difference between increasing the deductible and reducing the premium may not always be beneficial. Always consider how much you could afford to pay in the event of an accident if you were at fault.

5. Install a telematics tracker for young drivers

A telematics device records and monitors the driving behavior of the individual. Therefore, an insurer can focus on the particular person rather than the bracket they fall into, allowing them to appropriately pay for the risk they pose.

6. Choose a car with a low insurance group

Group and high-value cars are more expensive to insure because they cost more to repair or replace in the event of an accident. Different models have different features and it’s important to know what’s included versus things like body kits and built-in sat navs.

7. Do not modify your car

Modifications increase the risk and cost of the premium. They often lead to additional costs in the event of repair or replacement of your vehicle. Performance-related changes can also be difficult to insure.

8. Drive carefully

The more years you have without claims or penalty points, the cheaper your insurance is. Claims and penalty points are charged on an insurance policy because they increase risk. This is usually calculated as a percentage charge.

9. Remove blankets you don’t need

When comparing auto insurance, check to see if extras such as courtesy car cover, legal cover and windshield cover are included as standard, or if these are options you have to pay for. In most cases, you will have to pay for these extras, so before agreeing to do this, ask yourself if you really need them or if you could live without them. The key is to make sure you don’t feel pressured to add coverage that you don’t need.

For example, your car may already have roadside assistance as part of the package. The insurance policy may contain legal cover in the event of an accident, while the addition of legal expenses could include an additional range of benefits that are not necessarily necessary. The quickest and easiest way to compare insurance policy coverage is through IPID, the “insurance product information document” that all companies are legally required to provide before the sale. The requirements are the same across the EU and the sole purpose is to make it easier for the customer to compare covers.

10. Shop

Take the time to shop around and carefully compare car insurance quotes. Keep in mind that the cheapest policy is not always the best. It’s important to make sure you have the right level of coverage for your needs.

Research is strongly recommended as there may be companies offering a product more suited to the customer’s needs and some policies may offer car insurance add-ons more suited to the customer’s needs. Most companies will compete on the quality of their product rather than price in today’s business climate.

Did you know?

Drivers who purchase a telematics policy rather than a standard comprehensive car insurance policy will not only be rewarded for driving safely, but they could also enjoy significant savings. For example, a 21-year-old driver with a year’s bonus and a full, clean UK driving license could save £105* with a telematics policy.

*Savings of £105 is based on a new business policy for a 21 year old customer living in County Antrim employed as a Marketing Assistant with one year’s NCB and a full clean UK licence.

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