Insurance is one expense we hate paying, as we hope we don’t need to use it.
Car insurance provides valuable protection should your car be damaged or stolen, but it often comes with a hefty price tag.
12 ways reduce the cost of your car insurance
Consider how much cover you really need
The only car insurance you HAVE to have is compulsory third party (CTP).
- Paying for additional insurance is a choice you make after considering the value of your vehicle and factors such as your driving behaviours. The higher the level of cover, the more you’ll pay.
- As the name suggests, comprehensive car insurance is the most comprehensive level of cover. It therefore costs the most.
- Other less comprehensive and cheaper options are third party fire and theft or third party property damage
- Use price comparison websites or take the time to call a few insurers to get a detailed and accurate quote.
- The cost of car insurance can vary hugely between insurers. But be clear on what is and isn’t covered with different insurers, and decide what best suits your needs and your budget.
Come off auto-pilot
- Don’t pay that insurance renewal notice without asking your insurer for a better deal or discount.
- Do a few comparison quotes with other insurers to make sure you’re getting the best value and most bang for your buck.
Pay up front
- If your budget can manage it, pay your annual premium up front.
- Making monthly premium payments almost always costs more overall.
Discounts and deals
- There’s always a cash saving to be made if you ask for it.
- Check that you’re getting all the discounts you’re entitled to. Like a discount for buying online discount, multi-policy and multi-vehicle discounts, no-claim or low kilometre bonus and loyalty discounts, or perhaps a pensioner discount.
- The cleaner your driving record is, the cheaper you are to insure.
- Don’t make small, silly claims on your car insurance. If you have a few dings and dents you want repaired, it’s often cheaper to pay for these small repairs out of your own pocket.
- You’ll protect your no-claim bonus and stop the premium increase that results from making claims.
Drive a popular model
- The more common your model of car is, the cheaper it is to repair and insure.
Restrict other drivers
- Unless you absolutely have to, don’t insure other drivers, especially if they’re under 25 or have limited driving experience.
- Younger and less experienced drivers cost a lot more to insure.
Only pay for what you use
- Don’t drive very often? Consider a pay as you drive policy, which can save you cash by calculating your premium based on how many kilometres you drive.
Adjust your excess to pay less
- Your insurance excess is the amount you pay when and if you make a claim. You’ll probably have the choice of several different excess amounts.
- Choosing a high excess will make your premium lower, saving you some cash. Then cross your fingers and hope you don’t have to make a claim!
- Insurers try to sell you all sorts of add-on products with your car insurance.
- Consider whether you really need to fork out a load of extra cash for things like roadside service and windscreen cover.
Need some quick cash for your insurance?
- Have you been hit with a high car insurance bill or another one of life’s unexpected little surprises?
- If you need a quick and easy cash loan, City Finance can help.
- Just pop in and visit our friendly staff at your local City Finance branch for a chat, or apply online now!