Car Insurance

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Car Insurance

Car insurance is one of those “what if” insurances isn’t it? What if my car is stolen. What if I am involved in an accident. What if my car breaks down in the middle of the night. We are all legally bound to have it, but we also hope that we don’t ever need it. The problem with car insurance is that, let’s be honest, it’s pretty expensive. This has a bit of a knock on effect really, as it means that there are an increasing numbers of drivers (especially younger drivers, have you tried find insurance for a young, newly qualified driver lately?) on the road with no insurance at all. What if you are involved in an accident with an uninsured driver? Exactly, that’s why the premiums are going up and up and up for everybody else. Somebody, somewhere down the line has to pay for it. . .

Reducing Your Car Insurance

One of the easiest traps to fall into with your car insurance is to allow your policy to renew year after year. Let’s face it, we’re pretty lazy aren’t we, and many of us won’t give it a second thought, just keep paying the premiums when the car insurance comes up for automatic renewal. Well, STOP IT. That’s a sure fire way to pay more for your car insurance. You see, insurance companies don’t actually care that you’ve been a loyal customer for the past 5 years, never missed a payment and never been involved in an accident or claim, what they really need is to attract new business, so many of their cheaper deals are available for new customers only. You might be surprised at how much money you can save on your car insurance just by shopping around a little, or even saying to your insurance company, NO, I’m not going to automatically renew, I want to make sure that I’m getting a good deal. I bet you they’ll soon reduce your payments, it seems so unfair but it is the way of the world.

The best place to find a good deal on car insurance is on one of those comparison websites. They take away the headache of having to repeat yourself to the countless companies, name, age, where do you live, how long have you been driving, and all of that nonsense, you just fill in your details once and they quickly find the best deal for you by comparing prices with loads of different insurance companies. There are other ways to reduce your car insurance too:

  • Pay the whole lot up front – it’s tempting to pay your car insurance premiums monthly, (and the only way that some people can manage), but if you can afford to pay for the whole lot up front you will save a pretty penny over the year.
  • Pay more excess – this means that if you do have an accident, you are responsible for paying the first part of the claim. This needs to be weighed up carefully. Increasing your excess can really reduce your payments, but it also means that if you have a claim for say $600, and you have a $500 excess, you have to cough up the first $500 out of your own pocket. Can be a good thing, can be a problem – it’s down to you.
  • Change your car – if you’re the type of person who likes to drive around in some expensive flashy, gas guzzling motor and turning the heads of passersby, then you’re going to pay more car insurance. Grow up and buy something boring, economical and sensible – it’s one way of reducing car insurance costs anyway.
  • Read your policy – if your car is getting on a bit, it might not be worth insuring it’s replacement value. You need to be insured for accidental damage to other people and property, but if your car is only worth a few hundred dollars, it might cost you more to insure that part of it than replace it – think about it.
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