Many options exist for car owners to ensure maximum coverage for cars through suitable policies without having to actually spend very high towards premium amounts. To begin with a car owner should ideally look at a reputed comparison website to learn of various policies and premium amount offered by different companies. This needs to be followed up by a combination of proven methods for reducing the premium amount. Here are simple methods that can be used by a car owner to considerable bring down the premium amount payable.
Making The Most Of Annual Premiums
Paying annual premiums will fetch you an across the table reduction in premium. You will not stand to lose anything by paying annual premiums because of the simple fact that regardless of how you choose to pay the premium, you will have to fulfill your obligations. Effectively this means that this payment is unavoidable. So why not make the best out of it by paying annually and availing benefits of lesser premium? This can be effectively used in combination with many other options to bring out the total premium payable.
Reputation Of Comparison Websites Count A Lot
The featured website is one among the more reputed sites that offer comparisons of different policies and premium amounts, helping you to easily find cheaper car insurance. By sharing basic information about yourself and the type of policy that you intend to take you will get to see the prices for different policies from various insurance companies. You can then take a decision based on your specific requirements and choose one that is most suitable to you in addition to be the most cost-effective one. The advantage of using the services of the featured website is that the displayed prices will never be inflated at any point of time.
Prove & Demonstrate That You Are A Safe Driver
Opting for a pass plus test is also a good option to keep your premiums low. Not only does this test prove your intent, it also demonstrates your capability of being a skillful driver will be able to avoid situations in traffic that lead to accidents or incidents. Companies look at the risk perspective when calculating the premium amount. It is the job of the actuary in companies to work out high risk groups and low risk groups. When you demonstrate that you fall into the lowest group you will automatically get the benefit of lesser premiums. An actuary in an insurance company would look at various factors of risks that are involved before determining the premium amount that needs to be paid by the individual. It is therefore necessary to prove that you are a low risk category individual.
Carefully Consider Voluntary Excess
Voluntary excess is also another method by which you can keep your premium amount low. However this needs to be exercised with great caution as you should not end up paying more in any unfortunate eventuality. The system works like this – you pay lesser premiums all the time, and in the case of any incident or accident you will have to foot part or most of the claimed amount. Therefore this needs to be carefully weighed in by looking at various options before using this method for reducing premium amount. While it would be difficult to actually predict any incidents in the future, it is safe to take adequate precautions to protect one from unexpected expenditures.
Choose A Suitable Plan Prudently
There are basically three types of insurance plans – third party only, third party fire and theft, comprehensive full cover. In your quest for choosing a plan that is cheaper, it is highly likely that you may end up choosing a basic plan, that is – third party only. While it is true that this is the cheapest option that is available, it is necessary to understand that this may not be the best option always. This can be suitable for individuals who only want to be compliant with the law and keep themselves covered against claims raised by third parties in the event of any unfortunate incident. For individuals who would like to protect themselves from any kind of expenses, a comprehensive cover would be the better option.
In addition to the above you can also considerable reduce the premium amount payable by opting for a combination of two measures. One is the need to maintain a clean claims history which will automatically fetch you a no claims bonus. You can ensure that you get a no claims bonus by making payments for minor repairs yourself rather than making a claim. The second option is to furnish details of the named driver other than you who will be driving the car. If, for instance if the second driver has got a very good history, this will work in your favour and the combination of these two will help you to reduce the premium amount significantly.