4 Tips To Pay Lower Motor Insurance Premiums

There are many things that determine the amount of insurance premiums you pay, but one thing is certain; insurance premiums are going up. You probably pay hundreds or even thousands of dollars a year in car insurance. But you might be interested to know your insurance rate is dependent on many factors including your insurance company, your age, your driving record, the kind of car you own and drive and even where you live.

Despite the cost of car insurance most drivers wouldn’t be without it. In fact, third part insurance is compulsory on registering a vehicle to protect other drivers. But it does nothing to protect you or your car. The problem with auto insurance is that you’ll pay a substantial amount each year for the privilege.

Saving money on car insurance is usually a matter of doing your homework on the way insurance companies operate when it comes to comprehensive cover. To help you let me share with you 4 tips for saving money on car insurance.

To save on your car insurance you have to do a lot of work to compare policies. It’s incredible how different premiums can be between companies. You could save hundreds if you get the right policy. One of the best places to go for information to help you compare is your state insurance department. Because insurance is regulated in some states you can find quality information about policies and rates. Otherwise start talking to family and friends and go online to find websites that compare different policies and rates.

Besides cost there is also a very important service element associated with choosing insurance. Not all companies respond in the same way when you make a claim. This is very important. You don’t want to have to fight to get a broken taillight fixed. You want action. So after you have narrowed down your choices to the three best go and approach these insurance companies and talk with them about what they are willing to offer you service wise.

The next way to save money on insurance premiums is by choosing a higher excess. The excess is the amount of money you’re willing to pay before filing a claim. In many cases it is about $200 as a standard, but if you increase this you could save up to 25% a year. Just make sure that whatever amount you choose as your excess is an amount of money you could comfortably pay if you had an accident.

The final tip I’m going to give you is to discuss with your insurance company the possibility of tailoring your policy by removing cover you don’t need, or could go without. Some of the more flexible parts of an insurance policy include medical payments, uninsured motorist cover, collision and accidental damage. By deciding whether some or all of these extras are necessary for you you are going to save even more.

Taking the time to compare policies, claims processing services, your excess and the extras in your policy could save you a lot of money in premiums. It’s no good just taking the first policy you see and taking it ‘as is. Get the best deal on your car insurance by taking your time and tailoring it to your circumstances. When you see the savings you’ll be glad you did.

You can probably tell James Spacey loves writing about how to make money online, but you might also be surprised to know he also publishes quality information about the best loans (and heaps more).