How to Lower a Car Insurance Bill

Car insurance is a necessary if unwanted expense, which significantly bumps up the annual cost of running a vehicle. Many drivers waste unnecessary funds by failing to seek out a better deal than their current one, yet there are many simple ways to lower the premium without reducing cover or taking to a bicycle.

The type of car one drives is the key factor which determines how expensive a policy will be. Those who drive flashy models pay over the odds for coverage, and trading down to a duller and more practical vehicle can reduce costs significantly. Using a 4 x 4 for city driving and school runs is a prime example of running up unnecessary insurance bills.

Credit scores have a significant influence on the price of car insurance. High credit scores can cut the cost of insurance premiums substantially. Although there is no proven correlation between having bad credit and being more of a risk behind the wheel, approximately 90% of insurance companies now factor credit scores into risk assessment.

Actuaries have studied figures which show that those with good credit tend to be more responsible, something for which insurance companies are willing to give a discount. Those with low scores can use a company which does not take credit into account as a risk factor.

One of the simplest ways to lower a car insurance bill is to make an annual, rather than monthly, payment. Obviously, it pays to calculate if the saving made is greater than any potential interest which the money could be earning.

Insurers will also reduce premiums if the driver has other insurance policies issued by the same company; thus it pays to take home insurance through the same provider. Having multiple policies with the same company will garner a larger discount; thus if there are several vehicles to a household, aim for a multiple discount.

Insurance premiums can be lower for those with safe driving records, although this often has less influence on price than credit scores. However, those who drive recklessly and pick up speeding tickets should not anticipate any discounts, due to their driving record.

Safety features, such as anti-theft devices installed in a vehicle can help to reduce a car insurance bill. Individual insurance companies will have lists of safety features, which should reduce premiums. Some drivers may opt to reduce costs by lowering their deductibles, but this could work out more expensive than the saving in the event of a claim. There is no need to compromise and reduce actual cover when it comes to reducing a car insurance bill.

The crucial point is to comparison shop amongst insurance providers and find the best deal to match one’s needs. Taking care to have an excellent credit score, a clean driving record and safety features in the car can all help to lower costs. Those who don’t want to spend the time comparison shopping should at the very least ask their insurance provider for a loyalty discount.