How to Save on Car Insurance
January 12, 2019
Although premiums can be high and cause many people to shy away from buying a policy, there are several ways that policyholders and prospective policyholders can save on auto insurance. Therefore, in this article, we list a few tips on how to save on car insurance.
How to save on car insurance by informing yourself with terminology
A policyholder does not need to be an insurance guru, but understanding the terms and language used in the industry can help a person to understand how to save on car insurance.
It is natural that if you inform yourself on a certain subject/topic then you can make better decisions. If a policyholder knows and understands the language of the industry then they are more likely to get the cover that best suits their needs at a minimum cost.
Listing one’s education
It is an open secret that educated people are held in high regards in many spheres of life. If a prospective policyholder has a graduate degree or equivalent, he/she must indicate it to the insurer. People with a good education are not associated with reckless driving. Hence the premiums levied on them are low.
It goes without saying that a person’s driving behaviour and history determines the premiums levied on him/her.
They consider a person with a clean record to be a ‘safer’ driver and pays lower premiums.
Investing in car security
A car is a highly valuable asset that someone could steal any time. Car owners can protect their cars by fitting them with alarms or anti-theft systems. They can also park their cars in secure places such as a lock up garage or at work.
This reduces the risk of theft and in turn, reduces the premiums.
Regular car maintenance
In most cases, insurance companies inspect the vehicles that they insure. A well-maintained vehicle with a good service history will cost less to insure. The car is considered to be reliable and less susceptible to accidents and break-downs.
Comparing insurance costs before buying a car
Cars do not cost the same to insure. A prospective policyholder should also check how much it will cost to insure the type of car that he/she wants to buy.
Expensive cars, those at high risk of theft and those that cost more to maintain will result in the owner paying higher premiums.
Before buying a policy, a prospective policyholder can get quotes from several insurers. So if necessary, he/she can consult an insurance professional for advice.
Buying insurance from the same company
Buying life, auto and home insurance from the same company can result in a policyholder to pay less.
Paying in full instead of periodically
If a policyholder can pay his premiums in full for a yearly period, he/she may get a discount resulting in lower premiums. It can also help a policyholder to save on transaction costs.
A vehicle which is constantly on the road has a high risk of being in a car accident. A policyholder who does not drive his/her car regularly will pay low premiums.
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All info was correct at time of publishing