There are many ways to reduce your car insurance quote, including choosing a higher deductible, insuring your car by the kilometer, or choosing to pay your premiums annually. Below are ten good tips for low-cost auto insurance.
1. Choose higher deductible car insurance.
The higher your deductibles, the less expensive your car insurance. The deductible is the amount that remains with you after you have been reimbursed by your insurer. However, choose an amount that correlates with your real needs:
If you drive a lot, don’t reduce your deductible car insurance to 0 km.
If you live in the city, choose a low deductible amount for all-accident or collision damage. Unless your car is very old.
If you park your car on the public road, choose a moderate deductible for theft and vandalism.
On the other hand, a low deductible for glass breakage is often unnecessary, in that the cost of these repairs is often reduced.
2. Bet on small car insurance or related insurance
Small vehicle (per kilometer) insurance is for people who do not drive much. If you are in this case, you will benefit from a saving of up to -50% compared to the classic rate. In the same way, the related insurance called “Pay how you drive” is a good choice to benefit from interesting discounts. The only obligation is to install a connection box in your vehicle.
3. Reduce your guarantees
While an all-risk contract is advantageous when your vehicle is new, this is no longer necessarily the case when it is more than five years old. In fact, it loses part of its value compared to the Argus rate, which remains the rate your insurer uses to reimburse a vehicle that has been totally damaged by a collision or fire, for example. Extending coverage to third parties may well do the trick. It often includes the following coverages in addition to third party liability: glass breakage, fire, theft, and natural disaster.
Also, you don’t necessarily need replacement cost coverage, since your car is less expensive. Especially since this coverage is quite expensive. The gain is 30% on average if you switch from comprehensive insurance to extended liability insurance.
4. Avoid premium surcharges as a young driver
If you are a young driver, the bill is often heavy. Here, the reflex is to insure yourself in the same company as your parents, especially if they are impeccable drivers. Or ask them to register you as a secondary driver on their contract. They’ll pay a small premium surcharge, but it’s out of all proportion to the premium you would have had to pay if you had taken out the insurance yourself: a 100% premium surcharge compared to an experienced driver.
The best thing to do is, of course, to anticipate this by taking your license with an accompanied driver. Indeed, young drivers who have taken the test benefit from a premium supplement of only 50% the first year and 25% the second, instead of 100% and 50%.
5. Choosing a car with a small engine
Do you really need a powerful car? Given the car insurance rates for large cars, the answer is not necessarily yes. If you can, you should opt for a car with low horsepower and low insurance costs. Indeed, prices for cars over 9 hp are on the rise. So avoid 4X4s, coupes, turbochargers and other sports cars and big-engined cars. All the information on the page dedicated to the types of vehicles.
6. Choosing a car with an electric or hybrid engine
Electric or hybrid cars are much cheaper to insure than internal combustion vehicles. This is mainly because they are cheaper to repair and their reduced power helps to avoid serious accidents. You can expect a 30 to 50% reduction for this type of car. Provided that you do not buy an expensive and powerful Tesla-type electric car.
7. Not declaring all your claims
This advice may seem incongruous, but it is best not to report small claims such as scratches, dented metal, or small impacts on the windshield. Especially if you are responsible for the incident. By paying for the repairs yourself and not reporting anything, you can avoid having your no-claims premium increased by 25% or 12.5%. The respective increases in the event of an at-fault or semi at-fault accident, even minor.
Of course, you must report accidents that cause damage to third parties or major damage to your car.
8. Pay your car insurance annually
Paying the premium on an annual basis allows you to save 5 to 8%, as splitting the premium into monthly installments generates an additional cost. Choose to pay by direct debit on the due date.
9. Install an anti-theft system on your vehicle
If you are in an urban area, especially if your car is parked on a public road, opt for an anti-theft system. An antitheft system can convince your insurer to reduce your premium because your vehicle is less prone to theft, even if it is parked in an unsecured area.
10. Compare car insurance online
With the same guarantees, the differences in rates between insurances can be significant. So compete by using an online car insurance comparator. On these sites, the comparison is simplified and underwriting is quick and easy.