You’ve finally bought a car. It was a dream purchase. And now this car is going to be your most treasured asset. You can’t wait to hit the road and flaunt your ride.
But here’s the thing; we as human beings can be quite hasty. Buying a car is just half the work. In fact, when we buy any car and don’t get it insured properly, it might end up burning a hole in our pockets.
Securing the right insurance program from the ideal insurer requires time, research, and due consideration. So the roads may have to wait until you know your car is safely insured.
You need not worry though. Once you’ve found the right insurance company, you’re good to go. But since auto insurance is a whole different procedure than auto buying, some tips could help you get a good deal.
Whether you have an old car or a brand new one, the following guide will have you covered on what to look for while saving yourself from problematic insurance contracts.
Our best, money-saving insurance tips!
Getting an affordable car insurance quote is a huge challenge, but it isn’t impossible. However, here’s the catch: even if you can find affordable car insurance in one year, the premiums may double the next year giving you a nasty shock, right in the finances!
There are several reasons why your premium increases without your knowledge; for starters, your insurance provider may have decided to change the insurance criteria without telling you, or you might have been eligible for a customer discount initially, but it wasn’t renewed the following year. It could also be because you recently moved to a high-risk address, adding a bad driver to your policy, or had one too many motoring offenses in a year.
Whatever the reason may be, it remains true that car insurance is expensive. It is, in fact, one of the biggest cash drains on car owners. That’s why it is important to shop around for your car insurance before settling on a provider. Because if the insurer gets a whiff of your inexperience at buying insurance, your renewal premiums will blow up exponentially.
However, working with the right insurance company isn’t the only way to buy affordable insurance. Here are some more of our tried and tested insurance tips to help you keep your money on you, so you don’t have to give it away with your car premium:
Know what’s included in your insurance cover
This may come across as a surprising tip, but, often, the insurer may overlook some crucial features of an insurance program. Hence, revisiting the basics is important.
There are a few key elements that your insurance must always cover. These are the liabilities for bodily injury and property, collision, comprehensive, and medical coverages. Now each of these depends on the kind of car you buy, whether its brand new or used and if it will be privately driven or rented out for public use (for example cab service, pizza delivery, etc.).
The most important coverage is the liability for bodily injury and property damage. It’s always best to get full coverage. Some people stick to liability limits which cut the insurance short. But, it’s better to be safe than lose your lifelong savings over steep claims. And for this reason, you should never be rash about car buying. The car model you drive will determine a major part of the insurance.
Collision and comprehensive damage are closely related. Since collision coverage bears the cost of your vehicle, it is especially crucial if you’re purchasing a new, valuable car.
Comprehensive looks after all the other damages to your vehicle like fire, theft, etc. It comes with a deductible that can give you discounts of as much as 30% on your premium. Medical payments may come across as necessary in case of an accident, but you must think carefully about them.
Here’s a tip; if in case you already have full health insurance then you may not require medical and injury coverage. However, if that isn’t the case or the people you normally drive around with, then you must get insured for it too. All in all, go through the insurance contract carefully and review all the coverages.
Select the best insurer for your needs
You must be willing to search extensively for the right insurance company. There are some factors like your gender, age, and job that will help you hand-pick one. Because, in the end, the premium you pay is one hefty amount, so it’s best to keep your options hassle-free.
The right insurer will most definitely be one of the top companies in your areas. These companies have a proven track record of customer satisfaction.
You should really be looking for in the company is responsiveness, efficiency at payments, and a genuine advisory attitude. In other words, representatives should be willing to give you all the necessary details.
Knowing you’ve landed a trustworthy insurance contract truly pays off in the end. And in case you want to sell your car before buying a new one, you should be looking for similar efficiency on account of a car-buying company like this one.
Disclose your job title wisely
Believe it or not, your job title can more or less get you charged you a high premium. Never report that you’re unemployed if you’re retired or a stay-at-home parent when drawing your insurance contract. It invalidates your designation. Always check the right box and stay wary of ’unemployment’. This small caution can save you a handful of pounds!
If your job title fits in a general category then you must mention so. For example, stating that you’re a ’construction worker’ instead of a ’builder’ will get you charged a higher premium on the insurance application. To settle with reasonable quotes on your car, you can always check different sites for comparison before your visit. However, make sure you don’t write a different job entirely as that can be risky.
Moreover, a reckless driving record can also cause your premiums to go higher. So, make sure your record is clean and not accident-prone. Some insurers give fair discounts on low-risk lifestyles like taking driver training courses and having good grades.
Keep track of mileage for discounts
It’s true. Reduced car mileage can get you speedy discounts on your premium, so you must always mention it in the application.
If the miles you drive per year stay between 7,500 and 15,000, then you’re eligible. Premiums can cost you a fortune, so if by luck your car hasn’t covered much mileage for reasons like a close-to-home office or carpooling then it can get you nice discounts of up to 5-10%.
Protect your no-claims bonus
If your insurer finds out about some previous claims on your car such as an accident or damage that wasn’t your fault, they may charge you higher premiums.
But not disclosing previously settled claims in the insurance contract can also put you in hot waters. You might lose out on the no-claims bonus (NCB) that can benefit you if you haven’t reported an accident/damage in at least five years. In UAE, a driver can get up to 20% off with these discounts.
Take care with policy add-ons
Your insurance provider will do his absolute best to burden your car policy with extras. Make sure that aren’t already getting these advantages from other sources.
Typical add-ons of a car policy include legal assistance, accident coverage, windscreen coverage, and a no-claims bonus, among many others. So if you see these being tied into your car insurance, try to learn more about them and figure out if you even need these or not.
Consider the type of cover you are getting
If your car is older and has lost quite a lot of its worth, why invest in a comprehensive cover for your car? It will probably cost more in premiums than the value of the car itself. Instead, consider third party, fire, and theft policies to ensure the safety of your car in case of an unfortunate accident.
However, the third party coverage isn’t as thorough, and may not deliver the kind of insurance protection you require for your car. You can also shop around for more affordable, comprehensive cover options.
Park your car with care
Yes, where your car is parked can also have an impact on how much you’ll have to pay for your car insurance. Parking off road lowers the chance of car vandalism or theft, thus reducing your payments. On the other hand, parking it out on the streets can have the absolute opposite affect on your premium.
Add extra drivers on your policy only if absolutely necessary
Putting additional drivers on your car’s policy can have a major impact on the premium, driving your payments upwards steadily. You can add anyone who shares the same address as you, so your spouse or children can be in on the same car policy. But if they have been reckless in their driving before and it’s on record, it will increase the premiums for your car.
If you can avoid having anyone under the age of 25 on your car’s insurance, it will be beneficial for your pockets as far as policy payments are concerned.
Think about your car for a minute
Cars with smaller, say 1.1-liter, engines tend to have lower premiums. Their road tax is cheaper, and of course, maintenance is a lot more affordable as well.
But here’s the thing, every insurer will have different criteria for sorting vehicles. And that’s why you must shop around until you find the right insurer for your benefit. So, for example, some relatively expensive classic cars can also get affordable insurance because insurers take into account the owner’s dedication to the car.
Avoid car modifications
So, you upgraded the car’s interiors, installed a new audio system, got a swanky new custom paint job. And now you can’t figure out why you are paying more in insurance than your brother, who happens to have the same car but with factory settings!
Modified car insurance coverage is definitely more expensive because these swanky new additions to your car are more likely to attract car thieves. Also, modified cars are more expensive to repair as compared to their ordinary versions.
Consider taking a driving course
You can find plenty of information about driver’s license prep courses and other advanced driving classes that can help insurance companies trust your driving capabilities a little more. These courses may have higher upfront fee, but isn’t paying it better than paying higher premiums year after year?
At least we think so.
These driving classes benefit drivers of any age. In fact, if all the drivers on your insurance can take the course, it will help drive down the costs of insurance considerably. This way, young and relatively inexperienced drivers can also afford the kind of car insurance they need. And to top it all, these classes are a great way to brush up on your driving skills.
So, there you have it… a comprehensive list of essentials that will help you out when choosing a car insurance plan.
Everyday car journeys are a necessity for many people in the United States and across the globe. And car ownership comes with its own set of dangers and difficulties. Primarily the fear of getting in an accident or having the car stolen rules the lives of car owners.
With reliable car insurance however, these fears can be put to rest once and for all. Yes, it is a major cost for car owners that they have to bear in addition to high fuel prices and other regular expenses. But at the end of the day, it keeps them out of financial calamity in case of a mishap.
Do you have any car insurance tips that we missed out on? Share them in the comments below.
About Michelle Joe: Michelle Joe is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences, and express herself through her blogs. You can find her
on twitter: @michellejoe524