When taking out car insurance, it’s important to ensure you’re being as cost-efficient as possible when choosing your policy.
Without the right care and consideration, you could easily find yourself paying much more for your car insurance than necessary.
However, this article will take you through the top five ways to save money on your car insurance.
Read on to find out more.
- Consider multi-car insurance
One of the first things to consider, is whether you’d benefit from multi-car insurance.
Multi-car insurance allows you to cover multiple cars under one policy, as opposed to individual policies for every car.
Not only does this give you the benefit of managing your coverage for several cars under one policy, but it can also help save you money.
Many insurance providers offer multi-car discounts, in which you can receive lower premiums for each car you add, than if you insured every car under their own policy.
This way, for those with multiple cars that require insurance, you’re still following the same process of insurance, except it’s all under one policy, and at a discounted premium.
To explore this further, click here for multiple car insurance.
- Look for telematics insurance
Another tip for saving money on your insurance is to look for policies which involve telematics.
This essentially means allowing your insurer to track data regarding your driving behaviour, and use it to tailor your insurance premium to you.
This data is collected using things like chips installed in your windshield, or apps on your phone.
For particular demographics – such as young, newly passed drivers – premiums can often be very high, due to you statistically being more likely to have an accident.
However, telematics will ensure your provider gets a clear picture of how you drive, not those like you, and they can reward you with lower premiums for better driver behaviour.
- Pay in annual instalments
There are often two ways in which you can pay for your insurance premiums. You can either pay in monthly instalments, or pay the whole premium in one go on each annual bill date.
The reason why annual instalments can help save you money, is they usually end up being cheaper than the total cost of monthly instalments.
For instance, you could have a policy with a premium of $100 a month, or a $1,000 annual premium. Naturally, this would work out that you could save $200 every year on your insurance, simply by paying annually.
- Explore your options
One other vital tip to help you save the cash on your car insurance, is to make sure you’re exploring your options when it comes to insurance providers.
Whilst it may be easier to go with the first provider you see – especially if you’re a new driver who dreads having to look around – it’s definitely wort searching for the right insurer.
There’s a vast number of providers out there, and each one will give you different premium quotes based on a range of factors – age, car, telematics, multi-car, etc.
Therefore, take the time to consider all your options, so you know you’re getting the best deal for your specific insurance needs.
- Build up your no claims bonus
The majority of insurers can offer you something known as a no claims bonus. This is essential if you want to save as much money on your insurance as possible.
This discount is provided to those policyholders who haven’t made any insurance claims throughout the year, and they often get a percentage off their premiums with every year they go without claiming.
As a result, you can end up building a larger discount with every year, and thus lowering your insurance premium.
All you need to do is not make any insurance claims – whether you’re at fault or not.
With these top five tips at your disposal, you can get the best car insurance at an optimal rate for your vehicle.