Car insurance is not just a good idea, it’s the law. But car insurance is not necessarily cheap, and some drivers can find that the costs associated with their insurance coverage put a severe dent in their budget. Driving uninsured, however, is not an option, and it is important that every driver have some level of coverage – both to keep them street legal and to protect them in case of an accident. But all is not lost for the driver on a budget. It is perfectly possible to get the insurance coverage you need, and still stay well within your budget. All it takes is a little money saving know how.
Look For Discounts
People rarely consider the availability of discounts when they’re shopping for car insurance, but they are out there and they can save drivers a considerable amount of money. For example, people in low risk occupations often have lower insurance premiums than those with jobs that are considered high risk. This is simply a numbers game, and insurance companies bank on the fact that someone like a teacher or an engineer is less likely to be involved in a major accident. Consequently, they offer them lower priced premiums because they are seen as a safe risk. Consider the following common discounts for which you might be eligible:
- Discount for Safety Features – Does your vehicle have important features like air bags and anti-lock brakes?
- Discounts for Senior Citizens – Older drivers with clean driving records can be approved for a significant discount on their insurance.
- Discounts for Professional Organizations – Members of an auto club, such as AAA, often enjoy discounts on their car insurance.
Choosing the Right Type of Coverage
All insurance policies are different, and no single type of auto insurance is suitable for every driver. For example, if you are driving a brand new car you will need to have full collision and comprehensive coverage to cover the full value of the car in case of an accident. However, if you are driving an older car, the blue book value of which is little more than £2000, carrying comprehensive coverage might be a waste of money. The cost of insuring your car will be more than its total value, so you will be paying for coverage you don’t need. One of the benefits of driving an older car is that it offers drivers a way to save money, and that extends to the cost of their car insurance.
Choosing a Higher Deductible
The deductible is the amount of money a driver is expected to pay before the insurance company begins to pay out. The lower your deductible the higher your premiums. Simply raising your deductible from £500 to £1000 can shave as much as 30% off of your insurance premiums. However, it should be noted that it is important to weigh the value of a lower premium against an increased personal financial responsibility in the case of an accident.
Insurance companies, like insurance policies, are all different. Before signing on with a carrier, get quotes from a number of different insurance companies. You may find that you can get the same level of coverage at a much better price. Even after you have chosen an insurance company, it never hurts to comparison shop when your annual renewal comes around.
Driving without car insurance is not an option, but there are ways to get the insurance you need and still save money. Do your research, compare companies and policies, and don’t be afraid to ask about discounts that can lower your annual premiums. With a little due diligence you may be surprised how much you can save.