Effective Ways to Decrease Your Car Insurance Premium

Nobody likes paying more than they have to for car insurance, and there are some simple tips that you can follow to decrease your monthly premium. The fact is that most people pay more than what they should for their insurance because of a few big mistakes. You will likely be surprised at just how much money you can save on your insurance when you get the right information.

Pay Annually

While many people choose to pay their car insurance premium on a monthly basis, paying it all in a lump sum once every year can help you save money. Not everyone can afford to do this, but it’s definitely the preferable option if you can. This is the case with almost every provider, but you should still check to make sure when shopping around.

Don’t do Auto-Renewal

The auto-renewal feature of car insurance policies that has become so popular could actually be costing you. If you ever decide that you want to switch providers, this feature will just get in the way. You want to have the freedom to choose another insurer if and when you feel like it’s time to make a change. Most providers will encourage you to opt for this, but it’s almost never beneficial.

Compare Providers

If you are currently looking for the best and most affordable car insurance, you need to do your research. Take the time to look into the different providers that are available. By doing this research you will be able to save yourself a lot of money overall. You should also remember to get quotes from multiple insurers before making a decision. Comparing these quotes will give you a good idea as to where the best deal lies. Also make sure that you find out which coverage options each provider offers, as it does vary greatly.

Minimize Your Risk

The more risk you are putting on yourself as a driver, the more money you will end up spending. There are lots of ways to reduce your risk, such as getting a newer car that has plenty of safety features. You can also take a driving safety course, which may help you save a few pounds each month. Talk to your car insurance provider about the different ways you can lower your risk and therefore save money on your premium.

Use Your No-Claims Bonus

Don’t forget to let your new provider know about your no-claims bonus so that you don’t miss out on any potential savings. It is typically a good idea to pay extra to protect this bonus depending on what your situation is like.

Increase Your Deductible

If you really need to save money from month to month on your car insurance, you can always ask for a higher deductible on your policy. This will mean having to pay more for repairs if you get into an accident, but it could be worth it. It is important that you keep in mind that you will be taking a risk.

Review Your Policy

Everyone should occasionally review their car insurance policy to make sure that they aren’t paying for anything they don’t need. There could be something that you no longer need but are still spending money on every month or year. Take the time to do this at least once every year. A lot of people are surprised to find that they are paying for more coverage than they require. While it’s not always a bad thing to have more insurance than you need, it could be a good idea to decrease it a bit.

Keep Your Credit Score High

Insurance companies usually tend to give people with good credit the better deals on their premiums. If you already have good credit, you should work hard to keep it that way. If your score is currently low, it is important that you do everything you can to increase it. The higher your score goes, the easier it will be to save money.

Look into Group Insurance

If you want to get car insurance for your entire family, you might be able to get a fairly steep discount. You will find that many of these providers offer lower premiums for those who need to insure three or more people at one time. This is not always the case, but it’s still something that you should take the time to look into.

Final Thoughts

There are tons of small and big ways to save money on your car insurance premium. These tips can go a long way towards helping you get the coverage you need while keeping more money in your bank account. The more effort you put into doing this, the better off you will be financially when looking for car insurance.