4 Tips To Pay Lower Motor Insurance Premiums

There are many things that determine the amount of insurance premiums you pay, but one thing is certain; insurance premiums are going up. You probably pay hundreds or even thousands of dollars a year in car insurance. But you might be interested to know your insurance rate is dependent on many factors including your insurance company, your age, your driving record, the kind of car you own and drive and even where you live.

Despite the cost of car insurance most drivers wouldn’t be without it. In fact, third part insurance is compulsory on registering a vehicle to protect other drivers. But it does nothing to protect you or your car. The problem with auto insurance is that you’ll pay a substantial amount each year for the privilege.

It’s important to have a good understanding of insurance and car insurance companies to make sure you get a policy that doesn’t wipe out your income entirely. With this in mind let me share with you 4 tips to saving on auto insurance. In some cases you will save hundreds of dollars.

The first thing you must always do is compare policies. Some premiums can differ from comparable cover by hundreds of dollars. You have to shop around and get several quotes before you commit to a policy. In some states your state insurance department can be of assistance. Where insurance is state regulated the department will have information available about the kind of coverage you can get and the rates you can expect. Then you should start talking to friends and family about their cover. There are also lots of online consumer resources about insurance companies and policies for car insurance. Some even compare different policies so you can see straight away where you can save.

Besides cost there is also a very important service element associated with choosing insurance. Not all companies respond in the same way when you make a claim. This is very important. You don’t want to have to fight to get a broken taillight fixed. You want action. So after you have narrowed down your choices to the three best go and approach these insurance companies and talk with them about what they are willing to offer you service wise.

You can also save money on most insurance policies by choosing a higher excess. This is the amount you have to pay before your insurance company covers the rest of the cost. The higher the excess the lower the premium you’ll have to pay each year. If you’re willing to pay more yourself so that you are insured in case of a large accident then you could reduce your premiums by up to 25%. Just make sure your excess is low enough that you won’t be left unable to pay it.

All insurance policies aren’t the same. Some include more extras than others, like collision, uninsured motorist cover, accidental damage and property theft. If you can tailor your policy by picking and choosing some of these extras according to your circumstances you are possibly going to save more and more.

Taking the time to compare policies, claims processing services, your excess and the extras in your policy could save you a lot of money in premiums. It’s no good just taking the first policy you see and taking it ‘as is. Get the best deal on your car insurance by taking your time and tailoring it to your circumstances. When you see the savings you’ll be glad you did.

James Spacey writes about a variety of topics including commercial insurance brokers and learner driver car insurance. Unique version for reprint here: 4 Tips To Pay Lower Motor Insurance Premiums.