Car insurance – don’t pay more than you need to


Purchasing a car and buying the corresponding car insurance is an almighty chore. Auto insurance is an absolute must but it’s wise to cut down on the insurance amount as much as possible – in sensible ways of course. The trick is to cut costs without compromising on the quality of your insurance. The one thing that you must never do is to get hold of cheap policies from a bucket shop company: It’ll have more loopholes than bugs in the attic. Result? You’ll end up paying huge out of pocket expenses in the event of an accident. Take these tips as a reference point to put some cost cutting measures in place.

  1. If you drive a very old car, don’t bother with collision coverage. Collision coverage will pay for the cash value of the car-which will not be too much if the car is an old one. So you can afford to let this one go.
  2. Get crash tests conducted on your car to get a star rating. Crash tests are conducted by cops using a low impact barrier to see how much your car can endure. This safety rating reduces insurance rates.
  3. Add on safety features in your car. Air bags, good quality seat belts, child locks- these go a long way in reducing insurance rates (and adding to your safety of course) as insurers figure that safety features reduces risk of accident claims.
  4. Standard car models attract reasonable insurance rates. If you buy an expensive make, forget about getting a good insurance deal as spare parts are hard to get.
  5. Anti-theft devices like alarms or remote locking devices cut down car insurance charges. Again the logic is that a thief will not waste his time on such cars.
  6. A clean driving record impresses insurance actuaries like nothing else can. They figure you are a safe bet. Insurers love safe bets so your insurance rate will drop. A driving record strewn with traffic offences, speeding and parking tickets on the other hand is likely to get your insurance rate hiked.
  7. Credit ratings matter a great deal for getting an attractive car insurance deal. Insurers almost always check an individual’s credit rating before offering a rate. So do what you have to do to maintain a decent credit rating.
  8. Ask your insurance company to offer discounted rates for second policies if you have already dealt with them before. Car insurance firms offer hefty discounts to the tune of 30% on second policies.
  9. Many insurers are affiliated to companies. If you work in an office, chances are that the company offers bulk business to an insurance firm which will return the favor by offering employees low insurance rates.
  10. Avoid paying for duplicate coverage when you deal with different companies.

Examine identical insurance coverage rates offered by different insurance companies. Choose the one that offers the best value for money.