Depending on the make and model of the car you own, the country you live in and the insurance company you choose, your auto insurance premiums can vary greatly. Of course, there are many other factors that will determine your premiums and the good news is that you can do plenty to lower the premiums and ensure that you actually save when compared to other people in a similar position. So, how do you do it?
1. Be Smart when Choosing a Car
If you are in the market for a new vehicle (whether brand new or used), you should keep in mind that the choice of the model and the make will have a huge impact on the premiums you will pay to insure it. For example, certain manufacturers such as Toyota, Honda or Volvo are famed for the beneficial effect they have on the premiums when compared to some other makes. The type of the car will also be important, with sports cars and especially luxury performance models bringing with them enormous hikes in premiums. More family-friendly vehicles and those that are usually not driven fast will be more premium-friendly.
2. Shop Around
It goes without saying that you will also want to take a look at as many insurance companies in your area as you can. This has been made easier than ever before thanks to online resources and agencies that provide insurance online. This is especially true for people in less urban areas who were previously quite limited when it came to their choices. It is, of course, important to know where to look for real reviews. For example, New Zealanders will mostly go to Consumer.com.nz where they can find, among others, Youi New Zealand review and find out whatever they want about different auto insurance agencies.
Once you narrow down your choice of insurance companies to a few, it is time to start comparing actual quotes and find out the deals that make the most sense in your situation.
3. Consider Higher Deductibles
A deductible is a sum you pay to your auto insurance company in advance of getting your car insured. Usually, the bigger this lump sum is, the lower your premiums will be down the road. The only downside of this is that you will have to fork over a significant sum in one go, but if you, let’s say find a great deal on your car and you have some money left lying around, this can be a perfect investment that will lower your future auto insurance premiums.
4. Maintain a Solid Credit History
When auto insurance companies calculate clients’ premiums, the first thing they do is check the credit information of said clients. The reason for this is that it has been empirically shown that people whose credit history is a good one make fewer claims on their vehicles and if there is anything auto insurance companies like more than statistical certainty, we haven’t heard of it. Of course, you will not exactly be able to travel back in time to correct credit history mistakes, but you should definitely consider checking your credit record, making sure there are no errors there and perhaps even doing some things to improve your credit rating.
5. Reconsider Coverage
For the most part, your average auto insurance coverage will make perfect sense. It will cover the vast majority of eventualities and it will help you sleep sound at night. That being said, if your car is an older one and/or its value is lower than the average premium, you might reconsider certain coverages. For example, you will not be taking out comprehensive coverage on a Ford Fiesta from 1988 that is barely starting. Making your coverage more bare-bones can result in great savings.