How to Save on Your Car Insurance Policies

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Car insurance. It’s a legal requirement for car drivers. Unfortunately, the costs can very quickly stack up, leaving you feeling overwhelmed and stressed. If this is something you’ve struggled with, though, don’t panic; we’ve come up with some key recommendations to help you save on your insurance. These don’t always need to be significant lifestyle changes; however, the cost savings could add up to a huge sum. And, at the end of the day, every penny saved is another penny in your bank account to spend elsewhere.

Four Simple Tips to Save on Car Insurance Policies

If your car insurance feels eye-watering, there are ways you can lower the cost. However, you will need to take a proactive approach, as most insurance companies will be unlikely to offer this readily. Fortunately, the following five tips could help.

#1 Start with a Cheaper Vehicle.

At the end of the day, your car’s value significantly influences the rate of your insurance. As such, if you have been feeling worried about the cost of your insurance plan, consider a cheaper vehicle. This is especially true if you have been looking to change out your vehicle anyway; buying a car at the top of your budget may leave you forking out a lot more for insurance. So, buying second hand or cutting your purchase budget could really help.

Of course, if you’re buying second-hand, keep in mind that car sale scams are on the rise. As a result, running a number plate check before you buy is crucial. This can help you understand the history of a vehicle, giving you more information about a car to inform your decision.

#2 Don’t Take Out a Policy Too Late or Too Early

If you try to take out an insurance policy too soon to your current plan’s expiry, you may pay more. Similarly, looking too far in advance can also leave you paying above the odds. Following this thought, try to compare policies around three or four weeks before your policy renews; this typically offers the best prices. The critical factor to remember here is to not let your policy auto renew; always shop around.

#3 Don’t Pay Monthly.

With insurance feeling like a big expense, it can be tempting to pay monthly. Unfortunately, though, monthly plans often charge a significant markup compared to annual options. As such, if you have enough savings to pay for your insurance in an annual lump sum, consider doing so; in many cases (although not always), this could save a lot of money.

#4 Consider Multi Car Policies.

These days, many households have multiple cars. If this is the case for your family, a multi car policy may be worth looking into. Operating on the basis of a “bulk buy” discount, multi car policies can allow you to save money on your insurance overall. However, keep in mind that the rate may go up once the first year ends, so always shop around closer to renewal to keep the price affordable.

Final Thoughts

If you’ve been feeling that your car insurance has gotten too high, be sure to check today’s tips. Of course, there’s no guarantee that every tip will apply to you; however, looking at these options could help you find a few ideas that may help. 

 

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