Tips on Reducing Monthly Car Insurance Rates

By: EconomyWatch   Date: 9 September 2009

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 Paying your monthly car insurance premium regularly is the best way to ensure that you have financial cover for emergencies involving your vehicle. Although it costs a lot more than the lump-sum annual payment, a better practice is to work on a few factors to bring down the cost of the premium and in turn reduce the monthly car insurance payment.

Your monthly car insurance payment can be decreased by following some precautions and exercising some careful investment strategies:

·        Increase your deductibles: Increasing deductible means you pay a higher share of the repairing cost before the claim comes in. Insurance companies encourage such practices by lowering the premium.

·        Opt only for coverage that you need: Instead of covering your vehicle for all situations, it is best to insure it only for the worst, such as theft and damage. This decreases the premium.

·        Purchase a low value car: Purchasing a low value car means lesser risk of theft and lesser maintenance costs. Even when repairs are required, spare parts are easily available cheaply for such cars. For insurance companies all these are positives for lowering the premium.

·        Drive less or car pool: Car pooling or using public transport can lower your mileage, thus decreasing the risk of accident and theft. As the risk goes down, so does the premium.

·        Invest in safety gear: Cars with anti-theft security systems, such as central locking or immobilisers, lower the risk of theft. Therefore, invest in these equipments to lower the premium.

·        Ask for discounts: There are various kinds of discounts on the basis of age, education, membership, etc. Therefore inquire about the discounts available and ensure that you get them adjusted in your premiums.

·        Buy all your insurance needs from one provider: This encourages the insurance providers to give you discounts because of volume.

·        Get your teen’s name on your policy: Children travelling to school located 100 miles away or more are eligible for extra discounts. Therefore get your child’s name on your policy.

Also, ensure that you compare the prices across all the leading insurance companies for your monthly car insurance premiums. There are many free resources available online to get insurance quotes.

Remember that the cheapest is not always the best. Therefore, read the finer details as well before investing in any monthly car insurance scheme.   


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