Many companies claim to be able to help you slash your car insurance cost by as much as 40%. This means if your car insurance premiums in this year is $1,000, you can save as much as $400.
But is this really credible, and can this even be achieved? This article seeks to find out more about these claims…
The 2 points below sums up our findings, and were gathered with consideration to how insurance companies price their policies. Major factors that contribute to motor insurance pricing include:
– Vehicle details: Make and Model of Vehicle, Engine Capacity & Vehicle Age
– Driver Details: Age, Sex, Martial Status, Driving Experience and Occupation of Driver
– Insurance Details: Amount & nature of claims in the past 3 years
– Type of Cover (Third Party Only, Third Party Fire & Theft or Comprehensive)
1. You can reduce your car insurance premiums by 15% if you choose to drop the optional riders.
Each rider cost you between 3-10% of your auto insurance premiums. Thus if you opt out of the unnecessary frills, you can easily save up to 15% of your car insurance premiums.
2. You can save as much as 30% of your premiums if you compare quotes with at least 12 insurers.
This happens because insurance companies have different business guidelines. They price insurance premiums of each vehicle model differently.
A point system is used to determine if a particular car is of higher risk…or not. Car models with higher points attract more premiums. The points are awarded based on the claims made by the existing client base.
3. You can save up to 35% when you choose not to insure your car using comprehensive coverage
This is really subjective. And there is a condition attached to it. But if you really need to slash your motor insurance by a huge chunk, you can get a Third Party Only or Third Party Fire & Theft coverage. However this is allowed only if your car is fully paid.
If you really want to get cheaper car insurance this year, the above knowledge will be of utmost importance to you. Instead of paying whatever premium your existing car insurance company quotes you, you have a choice to drop some riders (that are not necessary) and also compare quotes with as many as 12 insurers.
With this, you can make sure your car insurance cost is slashed by up to 40%.