Getting the cheapest car insurance available solves two problems. First, if you have any kind of vehicle, you have to have insurance anyway. And second, it minimizes the cost.Because let’s face it – car insurance can be expensive.But it doesn’t have to be. And seeing as you have to pay for it anyway, it makes sense to pay as little as possible.
What Affects the Cost?
Before we start looking into ways to get the cheapest car insurance, it helps to know how companies set premiums.Your age and your gender are the two biggest factors here. The older you are and the longer you’ve been driving for the lower your premiums. But if you’re a man, you can expect to pay more than a woman.The age thing makes sense because more experience means you’re less likely to need a payout. Or at least, it usually does.But what about the gender gap?That’s because men tend to drive certain types of cars. Yes, the type of car you drive affects the cost of your insurance too! But it’s also because of risk. Women tend to drive and park more responsibly, which is a huge factor for insurance companies.But that doesn’t mean that you can’t get the cheapest car insurance just because you’re a man. Or because you’re younger, for that matter.You just need to know how to reduce costs.
Our Tips for Getting the Cheapest Car Insurance
We’ve put together a list of tips to help you get the cheapest car insurance. Keep these things in mind while comparing quotes and you’re sure to save some money.Also, take some time to read our guide on Understanding Insurance!
1. Car Size and Premium Size
The smaller and cheaper your car is, the lower your premiums will be.
2. Nominating Drivers Can Help You Get Cheaper Car Insurance (But Not Always)
Nominating a driver who is older than 25 and has a good driving record can sometimes lower costs. But be careful with nominations, because it can just as easily make things more expensive.
3. Restricted Access – No Under 25s
We’ve all been there: 17 years old and wanting to borrow mom or dad’s car for the weekend. But restricting the people allowed to drive your car can help lower your premiums. And remember – if any of the drivers are under 25, the insurance will cost more.
4. Don’t Use Your Car Much?
It can be a lot cheaper to choose “Pay As You Drive” car insurance then.
5. Self-Braking Cars Get the Cheapest Insurance
Not always true, but if you have a self-braking car, your premiums can cost 10% to 15% less.
Excesses can make your car insurance cheaper or more expensive. Raising your excess limit will drop your premiums. That’s because you’ll be paying more and the insurance company will pay out less. But be careful going the co-payment route. After all, you’ll be paying more if something happens.
7. The Safety Factor
If your car has an alarm and/or immobilizer, and you keep it parked in a locked garage overnight, you’ll pay less for insurance.
There are a few discount options to keep in mind when you’re looking for the cheapest car insurance.First, if you and your partner share a car and you both have good driving records, your insurance will cost less. And that’s especially true if you can ensure it under a woman’s name.Second, look for an insurance company that offers a No Claims Bonus Discount. That way, the better you drive, the more money you’ll get back.Third, if you have more than one policy with a company, then they might offer you a discount.Fourth, eco-friendly cars can sometimes qualify you for a discount.And finally, if you buy your insurance online, you can sometimes get it cheaper too.
How to Get the Cheapest Car Insurance if You’re Under 25
You probably noticed that some of the tips we shared above include being older than 25. But what if you’re under 25?Earlier, we said that it’s still possible to get good car insurance without having to pay too much. So here are some tips just for you!
1. Choosing the Right Car for the Cheapest Car Insurance
The type of car you drive is going to be a factor in how much you pay for your insurance. So choosing the right type of car isn’t only going to save you money on the purchase price, but on your insurance premiums too.For example, don’t buy a sports car or any other type of high-performance vehicle. The more powerful your engine and the more modifications you add, the higher your premiums are going to be too. You should also check the ANCAP safety rating, how likely your type of car is to be stolen, and how much the parts cost to replace. All these things affect your premiums, so being smart about it will help you find the cheapest car insurance.
2. Take a Defensive Driving Course and Keep a Good Driving Record
Taking a defensive driving course and having a good driving record will lower your premiums too. That’s because it shows you’re a responsible driver and less likely to need to file a claim.A good driving record takes time to build and maintain, though. So this will only help you cut costs in the long-run rather than immediately. But if you take a defensive driving course, it will help you get there quicker.
3. Increase Your Excess
You need to be very careful with this, because the higher your excess, the more you pay out-of-pocket. But it can lower your premiums too. So choose a higher but affordable excess amount to get the cheapest car insurance.