Auto insurance costs have dropped recently, but there are signs that they will become more expensive this year. Although we are now paying less than in 2011, the AA says that the average annual total price of auto insurance increased by 0.2% at the end of last year and forecasts that the premiums will increase by 10% in 2019. However, there are many ways to pay less. Here are our top five things to consider when looking for auto insurance.
1. DO NOT pay the bill every month
Unlike other bills that save you money by direct debit, monthly insurance payments can be more expensive. The lump-sum payment of the annual premium is often cheaper.
Pay attention to the extras that you may not need or that you have covered elsewhere. For example, some bank accounts offer assistance in the event of a breakdown. It might also be cheaper to purchase some of these supplements separately.
2. Avoid automatic renewal
You pay much more if you renew your auto insurance every time. When you receive your offer, call your supplier and see if they can offer a discount or get another price. If you don’t ask, you won’t get it
3. Compare the prices
The more time and research you spend on getting offers, the more likely you will get a better offer. This is especially important if you are over 70 or under 25 and the premiums can increase significantly during the first year of renewal. If you have the time, get offers from at least two comparison sites and use insurers and brokers who are not on the comparison sites. Remember that the most cost-effective isn’t necessarily the simplest. Insurance brokers also can assist you to find the simplest deal and therefore the right coverage for you.
4. Reduce the risk
The less risky, the lower your premium. When assessing the likelihood of theft of your car, auto insurers take into account factors that can reduce the risk. So if you can park your car overnight in a garage or install an approved immobilizer, you will have to pay less.
Exceeding the speed limit increases your premium: insurers generally charge more if you have points in your license. When you buy a new engine, choosing a fast car is an easy way to pay more for your insurance premium. Choosing a more average model in a lower insurance category saves costs
5. Use your bonus without claim
If you don’t tell a new insurer about your unused bonus, your premium may be higher. It is worth paying an additional premium to protect your non-claims premium if you are eligible for five or more years of the non-claims premium.