Just about every licensed driver carries car insurance, but many don’t realize that they may not have the best policy for their needs, or at the best price. Many new drivers typically automatically use the insurance company that their parents use, or one that they’ve seen advertised often on television. You may end up with a policy that is much more expensive than you could have found if you’d shopped around before signing the policy page.
Even if you already have a car insurance policy, it’s still worth your while to shop around for better rates. If you’ve had a accident or claim free driving record for many years, you may find that other insurance companies offer better rates than your current policy. There are lots of other discounts that car insurance companies offer which are based on variables such as your age, location, and the model of your car. Younger drivers in sporty cars are typically more expensive than more experienced drivers in cars that are driven for business purposes.
It’s a good idea to review your current car insurance policy at least once a year, which is typically when most people renew their insurance. This is when you can try negotiating with your current insurance company. You may be surprised to find that there are unadvertised discounts that you can qualify for. These could be the amount of time you’ve driven without an accident, if you drive your car under a minimum number of miles each year, or if you’ve recently added another type of policy with the same insurer, such as homeowner’s insurance. Insurance companies want to keep good customers, so if you have an excellent record and always pay your policy on time, use it as a negotiating tool when it’s time to renew.
Adding additional safety devices to your car, such as child protection seats, security alarms and other such features can also provide a discount on your insuranace. If you’re getting ready to buy another car, tell your insurance agent and ask if they offer discounts to policies that cover multiple vehicles. Even if you’re not a home owner, many insurance companies offer renter’s insurance, so this could be another way to bundle multiple policies for a reduced premium. Umbrella insurance, which is a type of low cost policy which protects your assets if you are sued, is an easy way to add another policy to qualify for this type of discount.
By far, the most attractive feature to have when renewing or buying car insurance is to be able to show that you are a good driver with no accidents or other vehicle claims in your history. Car insurance companies are in the business for a profit, and they don’t like to take on or renew customers who have had many claims or can’t show they are responsible drivers. If you do have a minor moving violation, you might want to consider attending traffic school which will remove the ticket from your record, thus reducing the cost of your premiums. Of course, the best thing is to not get a ticket in the first place, so always drive carefully for not only your own or your passenger’s safety but to lessen the chance of a rise in your premium.
About the author
Graham McKenzie is the webmaster for a leading South African Car Insurance provider. For more information visit: http://car.insurance123.co.za/