In this article we list the best twelve tips to help save and reduce your car insurance premiums. Providers of car insurance provide a useful service but it doesn’t make any sense to pay any more than you really have to.
Of course car insurance is legally required in all countries. The consequences are severe if you have an accident without proper car and motor insurance and getting caught by the police without valid insurance is very bad, you might even be jailed or at the very least fined heavily.
The good news is that although car insurance premiums can be costly there are ways of bringing your premiums down without breaking the law.
Do be aware that you must not necessarily choose the lowest car insurance quote on price alone – so be careful to ensure the premium gives you the coverage you require otherwise the policy and premiums are a waste of money if when it comes to a claim you are not fully covered.
Please also do not be tempted to provide false information on your car insurance application in order to try reduce your premiums because the insurance company can invalidate your policy if you have lied or provided false information and you could become liable to costly counter-claims by the other party involved in a car accident.
Tip 1 – Shop Around
Spend a small amount of time researching the different car insurance companies and brokers – making a few phone calls and sending a few emails can save you literally hundreds in just one year.
Internet-only car insurance companies often have the lowest premiums because they have lower overheads compared to the bigger companies with large offices and workers.
Tip 2 – Compare The Market
The Internet now makes it easy because there are many price-comparison search websites that crunch your details and in seconds compares different deals to show you the lowest car insurance offers available. This will save you both time and money.
Tip 3 – Price Matching
The car insurance market is very competitive. Once you have a quote tell each company you have a better quote and often they will come up with an even better price because they want your business. They are luring you with a cheap quote on the basis that probably next year when you renew you won’t bother to make as much effort because you will assume they will again be the cheapest provider of car insurance the next year – not necessarily so!
Tip 4 – Increase Your Excess
The car insurance company will have a compulsory excess but you can add what is known as a voluntary excess in order to reduce your premiums. Don’t do this if you are not the best driver as then you will really have to pay out when you have an accident.
Tip 5 – Increase Your Car Security
Fitting an alarm or immobilizer to your vehicle will usually lower your premiums as your car insurance provider then has less chance of a claim being made. Not every company will take account of this measure so it is best to check with your current company first before spending large sums on security buy by and large insurers appreciate that you have made additional efforts to prevent your car being stolen. Additionally many insurers also offer lower premiums if you park your car in a garage or driveway.
Tip 6 – Accept Limited Mileage
Many drivers do not use their car much. If you work locally or just use your car to go shopping then your chances of having an accident compared to a person who works on the road or drives a long way to work each day is much less. Insurance companies make money if you don’t have accidents so if they believe you are a low risk they won’t mind offering you lower rates so if you fall into this category ask for a low mileage restriction in your policy.
Tip 7 – Buy a Cheaper and Smaller Car
If you want to drive down your motoring costs then buy a cheap car which is not highly powered – it will be much cheaper to insure every year and the chances are it will cost a lot less in running costs such as petrol and gas. Try buying a car that is commonplace so servicing and replacement parts are cheap. Avoid cars with modifications and extras that make them stand-out to car thieves.
Tip 8 – Take Third-Party Only
If your car has a high replacement value then fully comprehensive car insurance is essential in case of accidents but otherwise consider the calculated gamble of third-party only insurance if your car has a low value.
Tip 9 – Drive Slowly and Safely
Insurance companies love low risk drivers with a clean driving license as they rarely need to make a claim and so the insurance companies keep all of their premiums. Insurance companies do not like young high risk drivers as they are much more likely to have accidents through inexperience or showing off.
Driving slowly and with due care will help you build up your no-points bonus which will mark you out as a lower risk driver and will result in lower premiums and cheaper car insurance. Any convictions you get on your driving license all increase your car insurance premiums.
Older drivers are preferred by car insurance companies because they are proven to have fewer accidents, so if you fall into this category go to the specialist insurance companies that only offer policies to older drivers.
Tip 10 – Get Your Policies Under One Roof
As well as car and motor insurance you are surely bound to have other insurance policies i.e. home and house insurance. Try your current insurer as they should be wanting more of your business as it costs less to keep a current customer happy than find a new one.
Tip 11 – Pay Annually
Don’t be tempted to spread your payment because by paying your car insurance in one lump sum single payment you will save a lot of money. With monthly premiums an amount of interest is added to cover the extra administration so over the long-run it ends up costing you a lot more.
Tip 12 – Named Drivers
Sometimes putting another driver on your car insurance will reduce your premiums. This is mostly the case when the other driver is older and with a clean driving license. They may never even drive the car but by adding them it adds credibility to your application and the insurance company will assume for part of time they will be driving the vehicle.
This article has been exclusively written by the team at insurance spain who aim to meet the needs of people (particularly expats) who are looking for various types of car insurance in Spain.
Copyright Insurance-Spain.com. Feel free to use this article online and in your email newsletters as long as you leave it intact and do not alter it in anyway. The byline and biography must remain in the article.