Although car insurance can be highly valuable for your peace of mind and could give you some much-needed financial relief, for example, if you suffer a personal injury in a car accident, it can also be very expensive. Relatively speaking, automobile insurance is just as if not more expensive than homeowner’s insurance. That is why, if you have car insurance, it’s a good idea to attempt to reduce the amount that you have to pay as your insurance premium. We have compiled a few tips to help you to do just that.
Don’t just accept a renewal quote
It is often not a good idea to just accept a renewal quote from your existing insurer, even if you have built up a tidy no-claims bonus. This is because insurance businesses rarely give financial perks to existing customers; on the contrary, they often offer large discounts to potential customers and higher premiums to existing customers for exactly the same coverage. Protest by voting with your feet and shopping around when it’s time to renew your policy.
Avoid making small claims
It is probable that if you file any claims, come renewal you will have to pay a higher premium for the following year’s insurance. It is even possible that an insurer could opt to not cover you at all if you have made a certain number of claims over the previous year. Hence, you should avoid making any small claims unless you feel that it is very important to make them. This is especially true if your deductible is higher than or just about the same as your claim.
Indicate your precise occupation
Insurers can often charge very different amounts to people simply due to their occupations. If you have a job which requires you to drive a lot or drive to and from work for long distances, you may incur a higher premium. In many instances, people can save money on their premiums if they are more precise about their occupations when applying for car insurance (depending on their occupation). Furthermore, it is important to ensure that you are always honest on insurance forms, as any future claims that you make may be invalidated if you give inaccurate or insufficient information.
Don’t modify your car
Roughly half of all car insurance companies will refuse to cover a considerably modified or customized car. Those 
that do will often charge more for the insurance. If, however, you do make expensive modifications to your car or purchase valuable after market additions like chrome rims, be sure to have them covered under your policy just in case they are damaged or stolen.
Add another driver onto the policy
Strange though it may sound, you can sometimes reduce the total premium simply by adding another driver with a clean and safe record onto the policy. Of course, the flip side is also true. Adding young and new drivers or drivers with a bad driving history can actually raise your premiums.
Try to combine policies
If you have additional types of insurances, bundling together under the same carrier can potentially save you money. If you have homeowners or renter’s insurance, consider getting a quote from the same provider. Many carriers reward loyalty and that can make the difference in saving over another company.
Saving money on your car insurance is possible but does require you to be a bit proactive. Every penny that you don’t spend on your insurance can be routed to paying down your debt or building your savings. We have even more tips to help you save money on your car insurance.
