Saving Money on Car Insurance

Car insurance eats into my yearly expenses fund quite heavily, it is expensive, rarely used and constantly making me wonder – is it worth it? I remind myself that no matter what, it is something that falls into the ‘must have’ category when owning a car, as should something happen to the car, I would kick myself for not having a car insurance policy that would help me get my money back.

Yes there are ways around paying large amounts of money for car insurance, ranging from only having third party insurance to using advanced methods of searching for the best possible price on insurance.

Save Money on Car Insurance

Let’s have a look at the best ways to save money on car insurance.

Shop around for Car Insurance

Have you ever just received a renewal slip for your car insurance only to pay it, file it and be done with it? You have probably just lost money that could be easily saved. Insurance premiums change from year to year, especially as you get older, more experienced and continue without any claims.

Next time you get a notice informing you that you need to renew your insurance, ring up 5 different providers and get a quote. Almost certain that you will find a cheaper price then what you are currently paying.

Don’t give away the premiums!

Whilst ringing your 5 different insurance companies to find the cheapest car insurance quote, remember to keep quiet about what other companies have quoted you. Not all insurers are looking to give you the best possible price, instead they will potentially try and just beat the previous quote only – this could mean you are missing out on a huge potential saving.

Understand what your car insurance covers

Check that your cheapest policy quote still covers the different things you would expect from car insurance. Some insurers offer great premiums but with lacking features or super high excess charges.

Increasing Excess to Save Money

One of my favourite ways to reduce the amount I spend on car insurance is by maximising the excess costs. Eg; if you have a crash, you pay an excess of $500-$2000 depending on your premium. I maximise the excess as high as I can go in order to reduce the yearly premium. For instance, my current insurance is $2800 a year for my car, with an excess of $500. If I made my excess $2500, my yearly premium goes down to $1100. A saving of $1700!

I work on the basis that the odds are I am not going to have a claim for the year, but if I do – it will be something severe like a write off or stolen car – not something little like a chipped windscreen, thus the large excess won’t matter.

Tips to save money on car insurance

We would love to hear your tips on how you saved money on car insurance!

Did you use a specific insurance provider to help you save money?

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