10 ways to save money on car insurance

If you are finding a way to save the car insurance premium each year, you have come to the right place. This article will give good tips that help you cut the expense on car insurance by using easy and simple ways. Let’s get started.  



1. Select the type of coverage

Before buying insurance, you should study what type of coverage you need, both compulsory and optional, such as third-party coverage, vehicle repair for the other party, comprehensive coverage, and coverage for car loss or fire. Then, you should consider your own conditions, namely the age of vehicle, driving habits, and distance. These will help you decide what type of car insurance you should buy. For the insurance that offers more optional coverage than compulsory type, you have to pay higher premium. 



2. Looking for the lower price, you need to make a pre-purchase comparison

The premium of each company varies. So, before buying insurance, you should compare at least three companies, starting from the company’s credibility, prompt service and coordination, consultation and problem solving to fair premium.  



3. Ask for a discount from the agent. 


  • First-time purchase discount: When switching the insurance company, you normally receive a discount from the new insurer even though you already made a claim with the previous company.
  • Commission discount: When the agents or brokers would like to meet the target, they sometimes give up to 30-40% off. If receiving this discount, the insured may get the cheapest premium.  

4. Group insurance is cheaper.

If owning more than one car registered under the same name, you will get a discount from group insurance. Moreover, some companies or corporates have a policy to apply for insurance. If buying insurance under the company’s name, the employer will receive a high discount from the insurer.  
 

5. Dealer or non-dealer garage?

Drivers are well aware that the premium for dealer garage is more expensive, which can be 10 – 30% more. So, you may consider how you use the car to see if you need to repair it in the dealer garage. Now, many non-dealer garages have pretty high standard to compete with dealer garages. This will help you save the premium while receiving equally good service.  
 


 6. Keeping good record for a discount

If you insure the car every year but did not make a claim in the previous year or claimed for the damage you did not cause, you will receive a discount based on the premium tier in the year you renew the insurance.  


If you are guilty, the discount for good driving record will decrease. For example, if you have a good record and never have any accident, you may get 40% off. If you are guilty once, the discount will decrease to 30%. On the other hand, if you do not have good driving record, the premium will increase from the normal rate.  
 

7.  Identify the driver’s name to get a discount.

If you use a personal car whose insurance allows the insured to include two driver names at most, you should put the names in the policy. Even though you identify the driver’s name, many more factors must be taken into consideration. For example, if the owner who has come of age of expertise and caution drives his or her own car, he or she will receive more discount than non-owners, minors, or student drivers whose name is identified as a driver.  
 

8.  Have other insurances as well

Check if your car insurance company offers other types of insurance you bought such as home insurance, fire insurance, and life or health insurance. Sometimes, you, as an existing customer, can ask for more discount.

9. Buy the car with lower premium

Based on the ‘low risk, low payment and high risk, high payment’ principle. For example, 1,200-cc eco-car manufactured for saving of money, maintenance cost, and fuel cost normally pays lower premium than other types of cars. So, selecting eco-car is a good choice for those who want to save all kinds of expense, including car insurance premium. 

10 . Installing CCTV in the car


Is another way to help you save 5 – 10% premium, regardless of whether you are new or existing customer, including types of insurance. You simply need to take a photo of your car with CCTV installed as a proof and keep CCTV in the car throughout the period of insurance. Do not worry about the camera specifications. As long as it can record the motion and is not other types of equipment modified into CCTV, it should be enough. 

 

All of these are simple principles that help you save the car insurance premium. So, before buying car insurance, do not forget to take them into consideration to ensure that the insurance is value for money and offers protection you like the best.