Arranging vehicle insurance may be seen as one of the most boring tasks by some motorists. But it doesn’t have to be like that. One of the reasons why people are not keen to take the task on is because they don’t know much about how it works. It is much easier than many people thinks and definitely isn’t something most people cannot handle. Here are 10 tips to help you get through it successfully.
1. Correlation between Coverage and Price Isn’t Perfect
Many people think that the more coverage they add the higher their premiums are going to go up. It is true that your premium will go up if you add additional coverage. However, the increase can sometimes be negligible even though you doubled the coverage. Companies offer large liabilities coverage these days even before you ask for it because the chance of them paying a huge claim is very low.
2. Car Insurance Rates Vary a lot Depending on Companies
Again, people think that the rates would be similar to each other among companies. However, premium variations can be a lot different depending on which company offers the quote. You may be worried after receiving your first quote because it is very expensive. However, the next quote can be affordable to your relief.
3. There Are Many Ways of Saving Money
If you feel your premium is too high there are a few ways of finding cheap automobile insurance. Most motorists know that they can save money if they can avoid accidents, claims and traffic violation tickets. However, there are a few more ways and some of them have nothing to do with driving. For example, you can save money by parking your car in a private drive at night.
Paying your premium in full is another example to discounts you can get that has nothing to do with driving. Being a homeowner, living in a nice neighbourhood and being married is some of the other discounts you can still qualify even though you don’t have clean driving history.
4. Cars Insured Affect Premiums
The type of car you want to insure can affect your premium a lot. If you change to a sports car from a typical family sedan you shouldn’t be surprised to see that your premium is doubled. Autos with high safety specifications and good anti-theft features are usually cheaper to insure. Engine size is one of the factors that affect the costs as well as the type of it.
5. Younger Drivers Pay a lot More
Lack of experience is a serious problem with the vehicle insurers. Also, teenagers are known to cause many accidents in comparison with mature drivers. When the risk of insuring them is high it is only natural that companies will only insure them at a much higher price. You may be very surprised to see that your costs will substantially increase when you want to add a teen driver onto your policy.
6. Higher Deductibles (Excess) Can Result in Lower Premiums
When you increase your deductibles for collision and comprehensive coverage you may be able to save some money. Clearly, this would mean that you pay more out of pocket if you make a claim. So, you need to think about the merits and consider the risks of having more than one claim and paying several deductibles.
7. Cheaper Policies Can Still Provide Great Coverage
We are made to believe that cheaper policies wouldn’t be as good. However, companies plan to increase their market share by offering great coverage at affordable prices these days. You can still check carefully that nothing left out on your cover when you are offered a low quote. But you should never dismiss a good quote.
8. Shopping for Lower Rates Pays Off
When there are considerable price differences in the market it would be a big mistake not to shop around for the best deals. You can save up to fifty percent on car insurance by shopping around. Just remember to get your quotes for the same coverage. Otherwise you will make the mistake of comparing apples with oranges that will not yield accurate results.
9. It Isn’t Usually Free to Pay by Instalments
When you are asking to pay by instalment you are actually asking for credit from the insurer. They are kindly obliging this request and offering you the chance to pay in smaller instalments. However, this facility comes at a cost and you end up paying more because of the arrangement fees and interest charges. So, keep this in mind when it comes to paying for your policy.
10. You Can Cancel Most Policies with Minimal Penalties
Don’t worry that you cannot get your money back when you pay the full premium. Most companies will quickly refund the remainder of the premium when you tell them your wish to cancel. They will only charge for time on risk and some companies may charge small cancelation fees.