One of the biggest expenses of owning a car is the insurance. If you’re struggling to afford your car insurance bills, why not try some of these tricks to help reduce costs.
In most cases, you can save money by paying on an annual basis as opposed to paying on a monthly basis. An annual payment could be equal to 11 monthly payments – so you’re essentially getting a month free. Of course, few people can pay this amount all in one go, so you may have to set up a savings account and pay into monthly as if you were paying your insurance monthly.
Go for a high deductible plan
A deductible is the amount that you’re willing to pay out of your own pocket when making a claim. Opting for a high deductible plan can lower your rates significantly, although you do need to be prepared to pay more in the event that there is an accident. Of course, you could always pay off this deductible using a personal loan with Lucky Loans or another emergency. Alternatively, you could set up a savings account for your deductible.
Save money with a joint scheme
Having two or more people on one scheme can also save money for each of you in many cases. This could be with a partner or a parent. You can similarly save money with insurance bundles such as home and car insurance.
Park off road
Parking off road makes you less of a risk to insurers – your car is less likely to be vandalised or hit by another vehicle if it’s on a driveway or in a private carpark. If you have the option of parking off road, make sure to take advantage of it and specify this in your insurance application form.
Improve your credit score
If you’ve got a low credit score, an insurer may mistrust you to make payments on time and could charge you more (some insurers may even refuse to insure you if your credit score is very low).You can check your credit score at Experian and various other sites. If your score is low, your bank may be able to offer a credit builder scheme to help improve it. You should also take steps to pay off as many debts as you can and ensure that all your accounts and cards are under the same name and address.
Consider a black box
Black box insurance schemes are an extreme measure, but can drastically lower your insurance rates. This scheme involves having a box fitted in your car that monitors your driving – of you’re able to prove that you can drive safely, your insurer will reward you with low rates. This has become popular amongst young drivers.
Consider an advanced driving course
Another extreme alternative is to take an advanced driving course. Passing one of these courses can prove that you’re an advanced driver and will result in much lower rates. The course does cost money but it could be a good investment in the long run.