Car Insurance

This is a new area we have added here at the Petrolhead Blog. I think that it is time for me to give back some of the advice and experiences that have been part of car ownership these last 40 years!
To start the ball rolling I have some advice on car insurance.

How can you cut down on the average Car Insurance rate

Many people don’t know that shopping around is the key to save money on car insurance costs. Car Insurance is costly enough even if you don’t overpay on it. However, there are ways to reduce your costs.

12 Useful tips to reduce average Car Insurance rate

Given below are 12 helpful tips that you can use to lower average car insurance rates:

1) Drive less and qualify for a discount

If you drive below 7,500 miles every year, you might be entitled to receive a low mileage discount on your policy. Some insurers might give you a commuter discount if you use public transport throughout the week.

2) Raise your deductible or excess

If you raise your deductible from $250 to $500, then you can lower your premium by 10-15%. Nevertheless, keep in mind that you need to pay that higher deductible amount as upfront in the event of an accident.

3) Don’t use your vehicle for commercial purposes

Some insurers would include a “business use surcharge” or raise your premium if your yearly mileage goes up. However, if it’s absolutely necessary for you to use it for business purposes, make sure to inform this to your company or agent to cover your daily business trip. Remember to let your tax agent know if you are using the car for business you may get a little bit back on your income tax.

4) Keep tabs on your credit report

Your credit history is one of the various risk factors that most car insurers take into account while fixing rates (in states where it is allowed by law). Making timely payment for your bills and keeping a good credit history would help you reduce your rates.

5) Safe driving

If you’re a good driver who hasn’t got into any accidents or hasn’t had any speeding tickets in the last 3 years, you might qualify for attractive discounts. Even one speeding ticket can raise your rates and it is also dependent on the state you live in.

6) Buy a cheap or low-profile car

Car insurance companies also take the type of auto into account when they work out the premium rates. High performance cars, sports cars and other showy cars are assumed as higher risks since vandals and thieves principally target these cars. Statistics show that drivers of these vehicles are more irresponsible.

7) Move to a less accident prone area

Usually, the premium rate would be higher if you stay in an urban locality or accident prone area. If you can shift to a rural area where the rate of accidents is low, then you can save on your premium costs.

8) Put your car in a garage

If you keep your vehicle in a safe place like a garage, you can enjoy lower premium rates.

9) Install anti-theft or security devices

Car insurers provide a range of discounts for automatic seatbelts, anti-lock brakes and airbags. Likewise, anti-theft devices like GPS tracking systems and car alarms might also help you get a discount since these devices lower the probabilities of your vehicle being vandalized or taken away.

10) Search for discounts

There are good student discounts, multi line and multi-car discounts, safe driving course discounts and other discounts offered by vehicle insurance companies. See if you qualify for any of these discounts.

11) Shop around

Explore various companies and compare quotes offered by them. This would certainly help you save money.

12) Specialist Insurance

If you own a muscle car, vintage or classic then you may get a better deal by insuring with a specialist insurer. Often there are better clauses for choosing your repairer or allowance for you to be the repairer of your vehicle. Often being a member of a car club can have quite an impact on your premium as well.

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