Phoning Around And Querying Premiums
First off, shop around for quotes. Phone a number of different insurers and compare the quotes and try to play one against the other by telling the person on the phone that company X’s quote shows a monthly premium of Y and asking them if they can do better.
If you have insurance already it’ll be worth querying your premium. Car insurance companies often increase your premium on an annual basis and will increase it by more than it needs to be increased. They do this expecting you to phone in and question it and then reduce it to what the increase should be and if you don’t call them they get more money out of it.
Just keep in mind that a cheaper premium usually means a higher excess so if you choose to get the cheapest premium per month, make sure you have enough money set aside in case you need to claim and in turn pay the excess.
This might sound like a silly idea at first, but the less you drive the less likely you are to be involved in an accident. This is exactly how car insurance companies think when assessing your risk profile. For instance, if you travel 30km to and from work each day you’re going to pay more than someone who only travels 10km a day.
Most, if not all, insurance companies have various mileage thresholds. Ask what those thresholds are before committing to the insurance. If taking public transport to work is an option for you then doing so will help reduce your car insurance.
A Clean Record
Or at least an almost clean record will go a long way in reducing your premiums. This is another risk factor used in the insurance industry to calculate your premiums. The less accidents you’re likely to have the lower the financial loss will be to a car insurance company so if they can see you’ve been driving for X amount of time without any accidents they’ll lower your premium for you.
What Car Do You Drive
The cheaper your car is the cheaper your premium will be because the insurer will pay out less if your vehicle is ever stolen or written off in an accident. Naturally, you’ll pay a lot more in premiums for a Mercedes C-Class than you would for a VW Polo.
Insurance companies also look at the most hijacked brands. For instance, VW brands are more popular among car theft syndicates so your insurer will charge you more because your car is at a higher risk of being stolen.
Security And Where You Live
The area you live in plays a big role in the cost of your premium. Living in a suburb with a high crime rate is going to push your premiums up. You could counteract this by having good security on your property. Parking your car inside a garage within a gated area will lower your risk. The better the security the lower your risk profile is.
Vehicle Tracking And Monitoring Devices
There are devices you can have installed to track your vehicle in the event that it’s stolen. The cost of this device is added to your premium so make sure you’re saving money by having one installed.
There are also devices that monitor your driving behaviour. If you don’t drive like a bat out of hell then this could be an option for you. It monitors a whole host of behaviours such as how sharp you’re braking, how often you’re breaking hard, your acceleration and your steering. Your insurance company will reward you with lower premiums if they can see from the monitoring device that you’re driving safely.
Take A Defensive Driving Course
An insurance company will offer someone who’s done a defensive driving course a lower premium. Your insurance company should be able to help you in finding a course to do. Just be aware that you might end up with an increased premium if you fail the course. You should ask your insurer about this just to make sure.
Believe it or not, using a less flattering job title when telling your insurer what work you do will get you a cheaper premium. The comparison site GoCompare.com found that describing yourself as a “kitchen staff” will get you a far lower premium as opposed to describing yourself as a “chef”.
At the end of the day, car insurance companies are looking at how risky you are as a client. Some factors are a little harder to control than others, but the more you can reduce your risk to your car insurance company the better your chances are of getting the cheapest car insurance possible.