Studies point to the fact that many drivers pay too much for the car insurance. Are you in that position? The best way to pay the right amount for your cover is to consider the points in this article.
Choice of car
If you are thinking about buying a car, don’t make your choice on the model, color, accessories, etc. only but factor in the insurance. If you really want a particular car, make sure you ask about the cost of insuring it first. You may find the car is too expensive to insure for your budget.
Types of cover
You have to take out CTP or Compulsory Third Party insurance which you pay with your registration but the other three types of insurance – comprehensive, third party fire and theft and third party property – are optional. Do you need these other forms of insurance? Can you afford not to have them? How much will they cost? Your insurance bill needs to reflect what you need and how much you can afford.
Age and gender count
It sounds crazy but your age is a factor in the price you pay for cover. Insurers do their sums and believe that females over the age of 50 are safer drivers than males under the age of 25. These are factors you can’t change but it’s good to know how insurance companies think and how they regulate their premiums.
The street where you live
This is another factor in the possible size of your premium. Insurers believe that some suburbs or areas are more likely to have car thefts than other areas. So if you live in a particular street, you may be charged a higher cost even though your car has never been stolen.
And on or off-street parking is a factor too. If you have a lock-up garage as opposed to parking your car overnight in the street, insurance companies take this into consideration. The less likely your car is to be stolen, the lower your premium will be.
If you are a safe and careful driver, chances are you will have fewer, if any, accidents. This fact appeals to insurers. Generally speaking your premium will be lower than a driver who has made a claim or claims. It can pay to be a considerate driver.
Buy what you need
Insurance policies usually have a lot of writing. These are the conditions. Before you purchase your car insurance, find out what you can and can’t claim. Ask questions. Go online and make comparisons of like policies. Make sure that your premium and your excess – that’s how much you have to pay in the event of a claim – are in sync. A really low premium will probably come with a really high excess.
There is no one best way to reduce the cost of your car insurance because so many factors need to be considered. How old you are, where you live, your age, the cost of the car, how often you drive and so on. But with answers to these sorts of questions you are well placed to compare a variety of company offers and choose the one which best suits your needs for the lowest price.