Auto insurance is often a significant expense item for households. However, there are a few tips to reduce the price of your insurance premium. Deductible, level, and type of coverage, driving, vehicle characteristics: what are the different elements that can help reduce the price of your car insurance?
- Changing your car insurance premium
To pay less for your car insurance, the first thing to do is to check if you are being charged additional fees for splitting and/or deductions.
- Choosing the right coverage
Choosing the right level of coverage is the first way to pay less for your car insurance. One way to do this is to avoid an all-risk option for a relatively old vehicle that is due for replacement in a few years or even sooner.
- 3. Store your car in a garage
Some insurance companies take into consideration the conditions under which the insured vehicle is stored daily. Parking your car in a garage rather than on the street is a solution offering better security conditions compared to the street. This can sometimes contribute to obtaining a more advantageous rate.
Also read: Should you insure a car that stays in the garage?
- Increasing your deductible
Some insurers provide in the General Conditions of their automobile contracts the possibility for the insured to opt for a higher deductible in exchange for a more advantageous contribution, if applicable.
To find out your current deductible, consult your auto insurance contract. It will be either expressed in euros or as a percentage of the cost of the claim.
Also read: Car insurance deductible: how does it work?
- Opting for car insurance by the kilometer to pay less
Some car insurers offer insurance by the kilometer.
There are 2 offers of insurance proposed according to mileage :
the one that takes into account the exact number of kilometers driven called “Pay As You Drive” (“PAYD”). It requires the installation of an electronic box onboard the vehicle to control the distance traveled. The rental of this box can be free of charge or charged according to the insurers;
the other according to an annual mileage package. This type of contract may provide for the application of a financial penalty that can be substantial depending on the extent of the overrun (penalty generally proportional to the percentage of kilometers traveled in excess). Also, in the event of a claim, the insured who has not adapted his contract when the package was taken out is insufficient is exposed to a lack of coverage or a reduction in his compensation. On the other hand, if the mileage traveled is less than the estimate, some companies provide for a reduction in the premium or allow the excess mileage to be carried over to the following year.
GOOD TO KNOW
Paying less for your car insurance with per-kilometer coverage does not mean lower coverage. As with traditional offers, each insured is free to choose his or her level of coverage.
- Changing insurance providers
Sometimes the best way to pay less for your car insurance is to change insurers. Feel free to make several requests for quotes online and compare the coverages (conditions of use, exclusions, indemnity limits, and deductibles), services, and prices offered for the same level of coverage.
- Choosing the right car
Sports cars, sedans, and generally powerful models are generally more expensive to insure than small city cars. Pay particular attention to the number of tax horses to guide you in your choice.
- Do not drive to and from work.
Taking public transit or cycling to work instead of driving can also help reduce your insurance premium.
Contact your insurance company to modify, if possible, the use of the car.
- Drive better every day
It may seem obvious, but driving well and limiting claims is an asset for those who want to lower the price of their car insurance over the long term.
Note: some insurers apply a lower rate to so-called “clean” vehicles than to conventional vehicles. A rebate on the premium or a bank check can also reward the holder of a contract insuring such a vehicle.