GP: Reducing the Cost of Car Insurance

With everyone feeling the pinch lately it seems as though the prices of everything we deem to be ‘essential’ are still going up. Fuel costs are rising, as are the prices of homes and new cars, while insurance is a constant pain for some people because it’s often the largest single expense each year.

 

Unfortunately, it’s not the kind of thing you have a choice about – in order to drive on the roads, you have to have some kind of insurance policy in place. Whether it’s fully comprehensive or third party cover, you need to have at least a basic policy to cover you for any accidents that may occur, with details on the various policies available from BudgetDirect, but the question remains – how do you reduce the cost of car insurance?

 

carThe first tip is to never automatically renew your car insurance. If you choose to stay with the same provider, that’s fine, but you should always shop around for a better price and then try and ‘haggle’ with your current insurer to try and reduce the overall premium. More often than not, insurers will match or beat the quotes given by other firms, so it’s worth asking the question.

 

Adding a ‘named driver’ to your policy will also help to bring the cost down. A lot of young or inexperienced drivers will add their parent or partner to the policy, using their experience on the policy to reduce some of the cost by showing that they would be sharing the driving duties throughout the life of the policy.

 

Keeping your car in a secure location will also prove to be beneficial in terms of insurance. Having your car parked on the road outside your home will be seen as an increased risk and the price will increase accordingly. However, having access to a secure parking location such as a locked garage will have the opposite effect, bringing the price down because you’re showing that you’re doing everything within your power to keep it safe.

 

Another option is the installation of ‘telematics’ or a ‘black box’. This will monitor the driving style, including how fast you drive and how hard you brake, and it will also keep an eye on the time that you drive and how far. Having studied the reports, the insurance company will then bill you accordingly, usually after a 90-day period with ‘good’ drivers charged less and ‘bad’ drivers charged more.

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