How to Cut Down Your Car Insurance Costs

Vehicle insurance is an unavoidable cost that comes alongside driving. Essentially, it is a cover that protects you financially while on the road in the event of a crash or collision. Typically, car insurance costs can vary depending on your location, type of vehicle and your claim history. Most people pay over the odds for their policy without realizing; therefore, it’s a good idea to learn how to keep your premium low and affordable. Shopping around is one of the best ways of getting the best deal on vehicle insurance, as you may be caught off guard with an automatic renewal that takes advantage, by pushing your premium up.

If you’re keen to understand more useful tips on how to best to cut down your insurance costs, check out the tips below:

 

Choose your car carefully

The type of vehicle you buy will be a huge factor in the cost of your insurance policy. Newer cars have much higher premiums, simply because the parts are more expensive to repair and replace, while some models of cars are automatically listed as a higher premium because their owners regularly make claims. One of the best ways to keep your car insurance low is to buy a used vehicle instead of new. This is due to the fact that the price of the car usually impacts the cost of the insurance, so a cheaper car means a cheaper premium. Therefore, if you run a business and are looking to keep your business expenses low, hiring a used van from van stop would be a worthwhile option both in regard to vehicle cost and insurance rate.

 

Pay upfront

One of the best ways of cutting down the cost of your insurance premium would be to pay upfront. While it can be a large expense to pay up immediately, you will save a significant amount on interest rates which will increase your insurance premium by a couple of hundred dollars. Distributing the bill over a 12-month period may sound much more practical, but it’s not always the most sensible decision to make if you’re looking to improve your finances. Budgeting wisely will allow you to save for upfront payment methods.

Maintain a good credit score

To keep your insurance policy low, maintaining a good credit score is certainly the way forward. If the only option is to pay monthly, insurance companies will want to ensure that you can pay the sum. Therefore, if you have a bad credit history, you may be faced with a much larger figure. Pay attention to your credit score by paying bills on time and checking for errors in your statement which could affect it.

Cut down your mileage

While you have the freedom to drive whenever you wish when owning a car, the annual mileage can have a significant impact on the cost of insurance. In this regard, if you travel long distances for work purposes, it may be much more cost-effective to travel via public transport to cut down your insurance premium. What’s more, you’ll also be reducing your carbon footprint.

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