How to Reduce the Cost of Car Insurance

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Such is the importance of car insurance, that it can be one of the main considerations when buying a car. What are your personal needs? Where will your car be stored? Will you be the sole driver of the car? There are these, and many other things you should consider when purchasing insurance for your car.

Because car insurance is widely available, it can sometimes be difficult to determine which of the many options available is the most suitable for you. Comparison services such as iSelect, compare policy offerings from several providers, and generate estimates which are determined by the needs of the individual and based on factors taken into account by insurers themselves

Car Insurance comparison sites are becoming particularly useful as the cost of car insurance is an increasingly important issue for large numbers of motorists, who are constantly seeking out ways to reduce this cost, and ensure they’re getting the best deal. Comparison websites such as iSelect make it easier to choose a policy that best suits your requirements.

When looking for cheap insurance there are a number of things that can be done to make sure the right policy is selected to prevent problems further down the line.

One of the most helpful things that can be done to reduce the cost of car insurance is to shop around and see what is on offer. Insurance companies each have their own system of calculating a final quote, with several contributing factors- so no two quotes are likely to be the same. Understanding some of these variables will better help you navigate how your needs affect the final cost of your premium.

One of the biggest factors in deciding on a car insurance quote is obviously the type of car you drive. Vehicles are split into groups based on their type, and those groups are given a rating. The higher that rating, the more expensive the car insurance quote is likely to be. A larger car for a younger driver will lead to extremely high cost, while a smaller car would be less in comparison.

Taking care of security can go a long way towards reducing the cost of car insurance. Many cars have anti theft devices or immobilisers, or can have them fitted, to reduce the risk of theft. Limit the car modifications to security features, as other modifications like sound systems, rims and custom paint or body work will add to the cost.

Security also encompasses the likelihood of theft, which will be evaluated based on the neighborhood that the driver lives in. An area with a lower rate of car theft may also have a positive impact. Parking a car in a garage rather than a street will reduce the risk of the car being stolen.

Another key factor in car insurance quotes is the driver. Age and experience come into play; the more experience the driver has the more it reduces the risk in the eyes of an insurer.

Finding ways to reduce your mileage can also help so if it is possible to catch public transport to work rather than drive, do so. Lower mileage may mean cheaper insurance, if you make your insurer aware of your driving habits

Being aware of factors like these, and others will better enable you to find ways to reduce the cost of your insurance, and secure a deal that is right for you.

This has been a guest post. I hope you enjoyed it!

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Money Save Money

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

8 Comments

  1. Great article! I can’t tell you how many people I run across that are overpaying for their auto insurance just because they haven’t spoken to their agents in a few years.

    • Yep yep. Insurance is not fun to deal with, but if you could find a way to save just $80 a month, that’s almost a $1,000 savings each year! It’s definitely worth the research.

    • Cool. Thanks for the tip!

  2. I’ve made a point of doing price comparisons for my car insurance every 3 years or so, and each time, I’ve been able to get a substantial reduction in what I pay.

    Shopping around is often a fantastic idea, even if you think you couldn’t get a better deal than what you have now!
    Alex recently posted..Quote of the Day: Motivational (or finally opening my eyes)

    • You might even want to do those prce comparisons every year. I’ve noticed my rates inflating after just 9 months. I think it’s about time I re-evaluate my plans.

  3. I do a comparison check every few years, and usually switch if I save more than $200 a year. Otherwise I’ll wait months and try again. Sadly, our family has had 4 no fault accidents in the last few years, and we had to file a claim with our insurance twice (hit once by an uninsured driver and once by an underinsured driver). So this doesn’t work for us right now. Bummer.

    • That savings of $200 is definitely worth it! It might be about time that I recheck our policy… 😉


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