The cost of auto insurance can add thousands of dollars onto the overall price of your car. With average insurance costs of up to and around $1,000, it’s an area that everyone should be looking at. In this guide, we’re going to take you through some of the easiest ways to save on your insurance, giving you more money to play with over the life of your car.
Get a car with a smaller engine
To put it simply, the more powerful your car, the more risk you are on the road. So, it makes complete sense for insurers to charge you more for a faster vehicle with a bigger engine. To get around your excessive insurance costs, it’s best to go for a smaller engine and a less powerful car. Especially if you are a younger driver with no real record to speak of. There are plenty of great little cars on the market – the Mini Cooper, or Ford Fiesta are two examples that spring to mind. And, in general, they are cheaper to run in terms of fuel consumption, and easier to drive around a busy city.
Use a comparison service
Many people stay with the same insurers after their policy runs out – but this isn’t the best idea. The introductory deals that attract you to insurance companies often run out after a year, and then your premiums will go up. So, always be aware of when your contract runs out and be prepared to change your insurers to find a better deal. Use a price comparison service to find your cheapest option. Comparaencasa has a simple interface that should give you an idea of what to look for. As soon as your new policy starts, make a note in your diary of when it finishes that you always have a shot at a better deal.
Another idea to save on insurance costs is to use telematics. It’s a clever little bit of kit that acts in the same way as an airplane’s little black box. Every time you drive, it records the data of how you have been driving, including your average speed and how you brake. If you are a good driver, this is the proof that you need to show the insurers, who will be charging you as an average driver. And, if you are safer than the average, then they will reduce your premiums.
Buy a classic auto
People that buy classic car models look after their vehicles – and insurers know it. That’s why they tend to charge them less for their insurance premiums, dependent on their previous claims history. It’s easy to see why. Classic cars take a lot more time, effort and money to keep on the road and in excellent condition. So, if you have ever needed an excuse to go and buy that old Mustang you have always wanted, then a cheaper insurance policy might just sway you.
And there you have it – four simple things to think about if you want to cut down on your insurance payments. Over a ten year period, these tips could take you from a five figure number into the lower regions of the four figure numbers. And that can’t be sniffed at one little bit.