Have you just bought a new car? Well, one of the first things you need to do is get it insured.
Although insurance is indeed a grudge purchase, it is mandatory and essential if you want to protect yourself against any financial losses associated with your car. If you are involved in an accident, if it is stolen or damaged, and you don’t have insurance, you face covering the costs of replacement and repair by yourself.
On top of that, if you are involved in an accident with someone else, and it is your fault, it is up to you to cover their repairs too. Trust us, you do not want to be in the situation of forking out thousands on repairing several cars that were involved in an accident.
But, how do you ensure that you get the cheapest insurance for your car? What do you need to look out for?
We took a look at the few ways that you can get a low insurance premium for your car.
Provide All of Your Details Accurately
When getting a car insurance quote, one of the first steps to ensuring a reasonable premium is to double-check that all of your details are accurate. The truth is that if you leave anything out or try to smudge some of the finer details and something goes wrong, you will be held responsible.
In many cases, insurers will come and inspect where you keep the car as well as its state, and if you are found to have lied about anything, you will end up paying higher premiums for being a higher risk. Furthermore, if you lied, you will almost certainly be denied payment for your claim.
Try Not to Have Any Gaps in Your Car Insurance
If you have had your car for a while, and have not been paying for insurance in that time, you will be paying a higher premium. Insurers see this as being risky behavior and will increase the premium marginally.
As a result, it is critical to obtain car insurance as soon as possible after purchase. Even if it’s third-party liability or even fire and theft, having coverage will reduce your risk of paying a higher premium. If you are worried about forgetting the monthly premiums, simply link the monthly or annual premium to your bank account and create a regular debit to go off to protect your car.
Increase Your Security
When insurers are determining your premium, they usually ask where the car is parked at night and during the day. If you are parked out in the street with no security at either time, you will most likely face a higher premium.
However, if you are parked in a garage at night, that doesn’t expose the car to the elements, or to the risk of being stolen, you can usually get a slightly cheaper premium.
In most cases, if it is locked behind a closed gate, or in a secure estate, you will also benefit from a lower premium.
The same goes with day-time parking. If you park the car in an office complex, or underground during the day, you will see a drop in monthly payment.
Don’t Have Too Many Modifications on the Car
You may love adding bits and pieces to your car. The odd spoiler, the upgraded engine, or any modification that improves your car-driving experience. But the fact is, while these increase the value of the car, they will also increase your premiums.
Insurers are well aware that these modifications can cost an arm and a leg, and are also aware that they do signify riskier behavior, because, let’s face it, you are not adding elements to the car to make it slower.
So, the more modifications you make, the more at risk you look to the insurer and the higher the premium. Keep in mind that this also includes additional sound systems and speakers.
Limit Your Mileage
In many cases, insurers offer a package for those customers who don’t drive a lot. So, if you are not driving to and from work each day, ask what they can offer you.
Numerous insurance providers offer pay-per-mile coverage, so if you drive less than 200 miles per month, you save not only on gas but also on insurance premiums.
This is directly related to lower risks on the road as well as less maintenance in the long run.
The Bottom Line
Aside from being required by law, having adequate car insurance coverage will protect you and your vehicle in the event of an accident. Speak to your insurance provider or insurance broker about the best way to get a low premium and find out everything you can do from your side. Remember, be truthful at all times, and if anything changes, inform them right away.