Cars are expensive to purchase, but you also need to be mindful of the associated running costs, as well as the initial outlay. From re-fuelling to servicing, costs associated with owning a vehicle can have a severe impact on your wallet, so it makes sense to reduce these where possible.
One of the biggest outlays you will have to pay for is car insurance. Depending on your situation, it can be a hefty amount each month, so if you are looking for ways to lower it a little – read on.
Here are 5 tips to reduce your car insurance costs.
Like most insurance, a one-off payment will work out cheaper than paying a small amount each month, so if you can afford it, you could make savings by paying annually.
Put a little aside each month throughout the year in a separate account, and when the time comes around, you will have enough saved to pay it all in one go.
Buy a newer car
Car insurance works similarly to extended warranty policies. For example, in terms of CarShield cost, the older the vehicle, the more likely you are to make a claim, and thus the premiums are typically higher – and it’s the same scenario for insurance.
If you want to keep the costs down, then shelling out a little more at the outset and buying a newer model could reduce your insurance premiums substantially.
Many insurance companies offer an auto-renew service whereby they will automatically renew your cover each year. You may think it’s a handy and efficient way to deal with insurance renewals, but looking at the potential cost implication, it’s not.
Most insurance companies will increase your premiums each year in this situation, so instead of auto-renewing, ask them to send you a renewal quote, and you can make an informed decision once you know what the new premium is.
Given how accessible comparison sites are, there is no excuse not to shop around for car insurance quotes. Once you create an account, your details are stored for future use, so it really couldn’t be simpler. A comparison site will give you access to many of the leading insurers and will provide useful at-a-glance policy comparisons too. So, next time your renewal notice lands in your mailbox, do some comparing before signing up for anything.
Do you park in your garage?
If like millions of households across the U.S, your garage is primarily a dumping ground for things you have no room for in your home, then you might want to rethink this. Parking in a garage overnight can vastly reduce the cost of insurance each year compared to parking on a nearby road or driveway.
When shopping around for quotes, take a look at how much cheaper it would be if you parked within your garage and, if it is substantial, it may be time to declutter some of your belongings.