How to Reduce Your Car Insurance Premium

By Tokkie Ferreira       Last updated Sep. 8, 2017


With the cost of living rising at a rapid rate, we try to find ways to lower our bills and stay afloat. Since car insurance is not required in our country, many view it as a luxury that can be cut or eliminated altogether, but in these troubling times, car insurance should be a main economic staple for every household.

An expensive car accident is just one delayed second away and the safety net that car insurance providers should not be thrown away simply because we are trying to tighten our budget. An accident without car insurance is an extremely scary thought and we want you to be as prepared as you can should that day ever come.

Instead of eliminating car insurance altogether, why not try to reduce your car insurance premiums?

There are ways to make your insurance more affordable. Your insurance may not need to be so comprehensive. Try these tips to help reduce your premiums to affordable levels:

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1. Car Retail Value Vs. Amount of Insurance

Do you know the current retail value of your car? This is an important number to know. Don’t go by the amount you paid for your car as these numbers tend to depreciate over time. The retail value for your car could have changed over the past year.

You can find out the current retail value of your automobile on the internet or by calling your insurance carrier. Chances are your car has depreciated in value. You can adjust your insurance to meet the current retail value price of your car and help you save a little money.


2. Compare Quotes

Shop around. Compare your comprehensive insurance with other companies’ rates. It is always a wonderful idea to shop around and get the best premium you can find. If you feel that you are paying a rate that is too high then you are welcome to get other quotes and find a better deal.

If you do find a more economical choice, you can always ask your insurer if they will match the competitive quote or you can simply switch altogether.


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3. Higher Amount of Excess

By changing the excess amount to a higher number, you can reduce your monthly premium. However, there is a sacrifice to this option. If you should get into an accident, your pay-in amount for car repair will be much higher and costlier.

It comes down to a decision of more money now or more expense later should you get into an accident. The choice is fully yours to make.


4. Try an Advanced Driving Course

You can try taking a certified, advanced driving course. Sure, it takes the time to take and pass the course but once done so, it can save you a substantial amount of money on car insurance.

These courses prove that you are a safer driver henceforth, your insurance carrier will more than likely see you be a lower accidental risk than the average driver.


5. Tracking Device

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By installing a tracking device in your car, you are adding another element of protection and safety that car insurance carriers smile upon. These are easily installed.

Call your provider if it is worth your while then one can be installed. After it is done, call and inform your insurance company then ask that your premium now reflect the change.


6. High-End Models

High-performance cars will have higher premiums to pay. Faster cars bring a risk of more accidents, and rightly so. To lower your premium, you may need to consider trading in that sports car for something a little more practical and safer in traffic.


7. Number of Claims

The more you claim for an accident the higher your premiums will go. Do not call every time your paint gets scratched or you get a minor dent while parked. Each of these incidents is recorded and placed on file. Save your insurance for more serious concerns.


8. Keep it Locked Up

Insurance companies like to see you keep your car in a safe place. By keeping it in a locked storage facility or a guarded area, you are showing that your car is under security while you are away. Insurers will view this as a low risk for theft and be more favourable to you with a more affordable monthly rate.

Current and up to date reported information is a requirement for a valid policy. However, did you know that your street address helps to set your car insurance premiums?

It is true. If you live in a safer neighbourhood with a 24-hour security then that information will help to lower your monthly rates.


9. Driving Record

Experience talks. Younger drivers with less experience will have a higher premium than older more experienced drivers. So, how can this tidbit help the younger driver save money? By building an excellent driving record in a car that can be easily afforded and maintained monthly.

Likewise, insurance history will also raise your premiums. Each time your cancel your insurance you create history gaps that can affect your premium once you start up your insurance once again.

A complete picture that you can present to an insurance company the better your premiums will be set.


10. Insurance Packages

A great way to save on car insurance is to purchase a joint policy that will cover your car plus your household goods. This will bring a more affordable premium and rate on both insurances.

Car insurance should not be an expendable monthly expense. This is one debt that should be kept and nurtured in case of future crisis. The thought is not to do away with it entirely but to try and lower your premiums yet keep the insurance for you and your family.

Though the monthly premiums seem a sacrifice, it could mean financial ruin if you should be in an accident without the insurance in place. Unnecessary rates are uncomfortable to pay. Keeping the insurance yet trying to lower these rates is the smart and responsible thing to do.

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