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How To Cut Car Insurance

Having a car can be expensive.  If this is shocking then you probably do not actually have a car.  While fuel is the still the largest annual cost for having a car, there is only so much that you can do to reduce this other than leaving the car at home or changing where you live or work.

The other major expense is car insurance.  This is a legal requirement and the price of insurance is set to rise for females because of the gender equality changes.  There are also penalties that can become costly because insurers are going to be getting details on what the driver did to cause them.  However, you should not fear because there are a number of ways that you can cut your car insurance to make the costs of having a car easier to handle.

Know Your Car

How often do you consider your choice of car?  Is the 2-liter engine something that you actually need to have?  If the answer is no or even that you are not sure, you need to consider downsizing.  Not only will a newer smaller car decrease the tax you have to pay, it will also cut the cost of your insurance.

It is also important that you keep up to date with the actual value of your car.  Most people know the price that they paid for the car and this is what is placed on the insurance policy where it stays forever.  However, as your car ages, the value will decrease and you need to consider this.  Overvaluing your car will do little to help your costs when it comes to your insurance.

Another handy price-related tip that you need to know is to avoid round figures when you value your vehicle.  If you are told that the value of your vehicle is $5000, you should put down $4999.  While this will not make a difference when you are in an accident, it will put you into a different insurance bracket which will lower your monthly premium.

Do you know how far you drove in a single month?  If you do, you should multiply this by 12 to make up the average distance that you drive in a year.  You should then check what you have specified on your insurance policy.  If the two figures are very different, you should update your insurance because this can save you a lot of money.

Keeping your car in good condition is also important, but did you know that there are safety devices that could help you save money on your insurance?  If your car has an immobilizer, you need to tell your insurance company about this.  When you move, you also need to update your address with the insurance company and tell them if where you are parking the car in a driveway or on the street.

More and more cars come with a number of additional extras.  If you have these extras, you need to see if they are still applicable to your car.  If you are going to be getting free breakdown insurance as part of the car purchase, you need to ensure that you are only paying for it once. 

Know The Law

When you have a penalty point on your license, you will incur an up-front cost and they will increase your insurance premium for as long as they are on the license.  The first step to avoid this will be to avoid getting any penalty points on your license.  To do this, you need to know what will cause these points.

While it is a legal requirement to tell the insurance company that you have points on your license, you should also ensure that you tell them when they are removed.  Telling your insurance company when this happens will hopefully lower your premium.  

Do A Driving Course

If you have held a license for less than 5 years, you should consider taking a driving course.  This course will often lead to a reduction in your premium if it is conducted by a school that the insurance company recognizes.  There are certain courses that will be recognized by a number of different insurance companies. 

Know How Your Premium Has Been Calculated

When was the last time you talked to your insurance provider and asked them about the steps you could take to reduce your premium?  When you do talk to your insurance company, the person on the other end of the phone will often be staring at a list of options that you can use.  All of these options will have an impact on your premium so you need to take the time to do this.

While most people will complete their car insurance application online because it is easier and cheaper, you should call them first to find out what information that you need to provide.  You also need to consider who your home and contents insurance is with.  If they also provide car insurance, there is a chance that you could get your car insurance for less with them.

If you are a new driver, your insurance will generally be higher than others.  If you want to lower your car insurance, you should look for value product that removes certain features like a no claims bonus.  As a new driver, you are not going to have any no claims bonus to protect so why pay for this?  With these value products, you could be able to save up to 20% on your insurance premium.

You should also avoid auto-renewing your insurance policy.  While this might be more convenient, you will be losing out on value.  When your renewal date comes up, you should shop around to ensure you have the best deal.

If your occupation is not listed when you take out the policy, you should not pick anything.  There are some occupations which are considered more expensive than others.  In these cases, you should call car insurance companies to ensure you pick the option that matches your job the best.

Do Not Forget The Hypothetical

Would it be cheaper for you to be added as a named driver on another person’s policy?  What would happen to your premium if you partner was added to the policy?  These are the kinds of prices that you need to ask before you take the policy to ensure you are getting the best deal.

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