14 Money Saving Tips
How to Get the Most for Your Money: 14 Ways to Save Money on Your Car Insurance...
So you’re shopping around for car insurance. What do you need to know? Well, there are lots of ways – at least 11 – that you can save money. Many of these money-saving ideas may apply to you.
- One Insurer, Multiple Policies – Do you have a home insurance policy? If so, is it with the same insurance company that provides your car insurance? If the answer is no, you’re paying too much – for both policies. Some insurance company that sells car insurance wants its policyholders to also buy home insurance from that company.
These insurers offer so-called multi-policy discounts. Usually, these discounts are at least 10% and some insurers apply the discounts to both the car and the home policy.
* Tip. Talk to your Insurance Broker about multi-policy discounts.
- Good Driver, Good Price – It’s no secret that the better your driving record, the less you will pay for car insurance. But did you know that most people qualify as “good drivers” and are eligible for discounted premiums? Some good drivers pay a lot more than others, however.
Many car insurers are actually a collection of several insurance companies in which each caters to a certain type of driver. The worst drivers go in one company, the best in another, and a lot of people wind up in one of the middle companies.
These middle people pay less than the worst drivers, but more than the best. The thing is, many of these middle people have driving records that are just as good as those who are insured by the companies that offer the lowest rates. Yet these middle people are paying more. Why?
The usual reason is that they don’t know any better. No one told them which insurance company in the group had the best prices. And, odds are, no one even told them there was a group of insurance companies. If you have a spotless driving record, there’s no reason you shouldn’t be paying the lowest price a group of insurance companies has to offer.
- Discount booster tip: there are many car insurance companies out there, all offering to reduce your premiums, many are a single insurer offering just their policies and products. If you buy a replacement car, change the drivers, buy an additional vehicle they will only offer you their terms, they do not check what other insurers are offering, we do. As an Insurance Broker we will check what other options are available at what suits you, not what suits your insurance company. .
- * Tip. Make sure you’re getting the best discount for your driving record. Talk to your Insurance Broker. And remember, be a safe driver. It will save you money.
- The Beauty of the Bus (or Other Mass Transit) – Do you drive to and from work? If you do, you are literally paying a premium to do so. Insurance companies charge you significantly higher premiums if you drive to work. And, the longer your commute (in miles, not minutes), the higher the premium.
* Tip. Some drivers should consider mass transit. Yes, there’s a price there, too. But you will reap the savings of fuel and lower insurance costs.
- Low Mileage, Low Price – On average, people drive 1,000 to 1,250 miles a month. That is what insurance companies consider average use.
* Tip. If you drive less than the average, you could be eligible for low-mileage discounts, which some insurers offer.
- High-Profile, High-Cost – The type of car you drive is a major factor in what you pay for insurance. Is your vehicle a magnet for thieves? Is it more expensive to repair than most cars? If the answer to either of the last two questions is yes, you’re paying more than the average car owner for insurance.
* Note. Use either Parkers or Glasses guide on line to get detailed information on your vehicle(s) – or a vehicle you’re thinking of buying – they will explain insurance groups and how these are calculated, retail & market values for vehicles there are also forums on line for certian makes and models and you will resouces here which will help you make an informed decision. Parkers Guide , Glasses Guide
- Increase Your Excess – The Excess is the amount you pay before insurance kicks in if you have a claim. For example, if you have a £250 excess and you have an accident in which your car sustains £2000 in damage, you pay the first £250 and your insurer pays the balance, £1750. The lower the excess you choose, the more you pay in premiums. If you have assets, you can probably afford to absorb at least £250 - £500 if you have a claim.
* Tip. If it’s been years since you’ve had an accident, you may be better off raising your deductible and paying less each year for insurance.
- * Double-Tip boost: If you buy an excess protector policy, where we pay your excess for you, means you can have a £1000 excess on your policy get a big discount off the insurers, and pay us a small premium to pay it for you.
- Drop Unnecessary Covera – Let’s say you have an older car, one not worth very much. There’s really little point in having Comprehensive cover. You don’t have much to protect. Remember, too, that you have to subtract your excess from any potential payout you might get. If the car is over 15 years old and doing less than 5000 miles per year, then a classic car policy may be a better option.
* Tip. As a general rule, any car worth less than £1,000 shouldn’t have comprehensive cover. Between the excess and the extra expense of this cover, the cost is probably greater than the benefit. How much is your car worth? An car dealer can tell you, or there are plenty of guides that have values of vehicles going back many, many years.
- Discounts, Discounts, Discounts – Car insurance companies offer several discounts for a variety of reasons. The car has automatic seat beats, air bags, anti-lock brakes, anti-theft devices, etc. The driver is a good student, which is especially valuable if you have teenage children who will be on your policy.
* Tip. Make sure you are taking advantage of all the discounts available to you!
- Taking the Defensive – Many insurance companies also offer discounts to those who have recently taken defensive driving courses.
- Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a district, city and town.
* Fact. Rates can vary greatly from place to place. For example, someone living in London, Birmingham, Manchester, Liverpool, pays several times more, on average, than someone in Cornwall, Northumberland, Devon, rural parts of Wales, Cumbria etc..
- Credit Where Credit Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several car insurance companies, more and more insurers are using this information as a means to calculate their premiums.
* Fact. Many insurers now use your credit history as a major factor in determining what to charge you for car insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your car insurance to a company that does not use credit as a rating factor.
* Tip. Regardless of your credit status, you should talk to your Insurance Broker to make sure you have the best situation given your credit record, good or bad.