Auto insurance is an unavoidable cost if you are going to hit the road. It’s just one of the many things we have to take into account in the ever-increasing cost of living.
The cost of a policy can vary due to many factors, from the car you drive to the number of years on the road you have under your belt. For some people, especially young drivers, the cost can be enormous.
Automotive specialists European car parts shared some tips that could help drivers save hundreds on their annual insurance bills.
Get a black box
If you are new to driving, auto insurance policies can be expensive due to your lack of automotive experience. One way to show you’re safe (and lower your premiums) is to purchase a black box insurance policy.
A black box is a small computer installed on your car to monitor your driving and transmit the information to your insurer. These devices use satellite technology to build a record of your driving habits. This includes how aggressively you accelerate and brake, if you accelerate, and what time of day you are active.
Once you have purchased a black box insurance policy, your insurer will arrange for a third party to install it in a hidden location, such as behind your dashboard.
By opting for a black box, you will likely have lower premiums in the first year, and your insurance costs may be further reduced after a year behind the wheel. This is a tactic that rewards consistent driving, so it should also help you build good driving habits and save money in the long run.
Make annual payments
If you can afford it, a one-time annual payment is one of the best ways to cut auto insurance costs because it means you don’t have to pay interest on the policy. Drivers can see savings of up to £200 by paying annually instead of monthly.
While monthly costs may be easier to manage, it may prove more expensive to pay this way. By choosing a monthly payment plan, you are effectively taking out a 12-month loan from your insurance company. This often means paying a fee on top of the interest rate to cover the premium.
Your insurance company may even perform a credit check before accepting the monthly plan alternative. If you have a low credit score, you may have to pay a higher interest rate, or the lender may even withdraw their monthly payment option offer.
Park in a safe place for the night
When calculating your car insurance policy, an insurer will always take into account where you park your car. If you’re wondering how to make car insurance cheaper, it’s always worth remembering that this is a factor you may be able to control.
Auto insurers want to know your parking habits so they can factor in the safety of your car. Locking your car in a garage overnight might seem like the safest place for your pride and joy, but an insurer might not quite see it that way.
They will take into account that it could potentially pick up scratches as you enter and exit. With this in mind, a carport is considered the choice of the policy maker. A private driveway is also a popular spot with insurance companies and could see your policy cost almost half the price it would if you park your car on the street out of sight of your property.
Get a dash cam
An accident on the road can happen at any time and in the heat of the moment it can be difficult to determine who is responsible for the incident. This is where a dashcam comes in handy for capturing footage of your time on the road, recording both your driving and other motorists around you.
Installing a dashcam and collecting footage of your journeys can get you a discount on your car insurance. Companies look favorably on drivers equipped with a device, as it shows that they are willing to document their driving.
Insurance companies are most likely considering lowering your rate if you have a dashcam that leverages GPS tracking and has a location setting in place, because the more information an insurer and authorities have about an accident, the better. .
If you’re involved in an accident or incident and your dashcam footage proves you’re not at fault, it can save you from making a claim on your insurance policy, preventing your premiums from increasing . Authorities are asking that if you want to report unsafe driving by other motorists in your area, you must submit footage to the national Dash Cam safety portal.