6 Tips to Reduce Your Car Insurance Premium

When you get car insurance for your vehicle, no matter what you do sometimes the price may not sit well with you. If you don’t know the ins and outs of how to cut your insurance costs, Geraldine Herbert from Newstalk explains 6 tips you can take to reduce your car insurance premium.

We’ve attached the video below for you to watch, but we understand that you may prefer to read; we have you covered there too, check out the video transcription below.

Geraldine Herbert: Hi. My name is Geraldine Herbert. I’m a motoring journalist and here are my tips to reduce your car insurance premium. 

Tip number one, shop around to compare. Insurance companies never reward loyalty so always ensure that you compare quotes, but ensure that you’re actually comparing like with like. For example, breakdown cover might be included in one as standard but it may actually be an optional extra in another. Make sure that you check all those details. If you do get a quote cheaper than the one you’ve been offered, go back to your insurance company and see if they can match it.

Tip number two, don’t over-insure. Always put a realistic value on your car. In the event of an accident, an insurance company will only give you the market value of the car at the time of the claim, not the price you paid first. 

Tip number three, look carefully at the excess on your policy. By increasing the excess on your policy, you will reduce your premium. Remember, it also means you’ll have to pay out more if you do have to claim. 

Tip number four, pay in full. If at all possible, avoid paying for your premium in monthly installments. It is always cheaper to pay the full amount.

Tip number five, keep your car safe. The safer your car is tucked away at night, the happier your insurance company will be. Consider adding additional security features such as an alarm, an immobilizer, or keeping it in the garage overnight. This may impact on your premium. 

Tip number six, only get the cover you actually require. Only pay for the cover you actually need and really what determines this is the value of the car. Look carefully at the difference third party, fire, and theft and comprehensive insurance. It may not be worth paying the extra.