How much does your auto insurance cost? Would you like to be able to lower it? Did you know that motor insurance represents about 4% of the price of your car in the first year? If you are lucky enough not to get involved in any accidents – and thus make any claims – the premium should drop to 1-2% by your 5th year. If you would like to see that cost dropping sooner, know that there are ways of doing that. Below you will find some of the biggest secrets insurance companies do not really want you to know on how to bring your motor insurance premium down.
Secret #1: Transfer Your “No-Claim” Bonus From The Old Car
You probably had no idea you could do that. But you can transfer the no-claim bonus from your old vehicle to the new car. No insurance agency is interested in openly revealing this, as it is most definitely bad for business. But when you are about to sell your old vehicle, you can retain the insurance in your own name by collecting the no-claim certificate from the insurer and reserving the respective bonus in case you are not yet ready to make a new purchase.
This bonus should normally accumulate and be transferred to your new car within three years. Plus, assuming you have not made any claim for the five years, your premium on the new vehicle should also be cut by half.
Secret #2: Install Extra Locks On Your Vehicle
Any device that can keep thieves away from your vehicle should be taken into consideration here. But keep in mind it will need to be approved or preferred by your insurer, or else it will not affect the size of the premium.
Gear locks, alarms, steering or wheel locks are usually considered means of adding more security to your vehicle, making it less vulnerable in the hands of potential thieves. The less likely your vehicle is to be broken into or stolen, the lower the premium.
Keep in mind you should only install vehicle safety devices manufactured by authorized manufacturers. They should also only be fitted by authorized, licensed and insured/bonded locksmiths for cars or specialized car mechanics.
The more you are willing to spend on your new locks on your vehicle, the better protected your car will remain when parked somewhere for a longer or shorter amount of time. If you are not sure which are the most suitable types of locks for your vehicle, talk to a local automotive service. Set up an appointment and have them assess your needs and recommend the best solutions.
If you know a good car unlocking service you have already used in the past and have been pleased with their work, give them a call. Compare a few rates around, read reviews on the best locks or rely on a technician with hands on experience to guide you. For insurance premium purposes, you will need to make sure you will solely hire a licensed/authorized and insured/bonded service.
Secret #3: Increase Your Deductible
Think of it as the money you will pay from on your own instead of making a claim. Keep in mind that if you choose to opt for a high deductible, you will eventually too much for repairs.