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How to Lower Your Car Insurance Premium

Paying too much? It might be time to sit down and review your insurance policy.

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DROP UNNECESSARY COVERAGE

If you own a car that is quite old and has a low market value, it could make sense to eliminate the comprehensive insurance policy and take out 3rd party insurance only. It is possible to further reduce your insurance costs by eliminating unnecessary cover or insurance that might double up with other policies. Road side assistance, Car rental, Medical and Death coverage might not a big part of your insurance premium, but think twice before paying extra for it.
These are further discussed in the following article: What Car Insurance Coverage Can I Do Without?

RAISE YOUR EXCESS PAYMENT VALUE (Up to 30% Saving)

You can cut your insurance premium considerably by raising your ‘Excess payment’ value. Insurers offer discounts on vehicle premiums if their clients accept a certain amount of the loss associated with a claim. Generally, the higher the ‘excess payment’ value that you agree for, the lower your premium will be. Ask your insurance company how your premium might be affected if you raised your ‘excess payment’ to higher levels. The discounts can typically range between 15% and 30% off the monthly premium, depending on the chosen value of excess.
By raising your ‘excess value’ payment, you can make your monthly premium much more affordable, but be sure to have the required ‘excess amount’ in a saving account as you will have to pay it out of pocket when you make a claim. Decide beforehand how much you can afford to spend out of pocket, and then adjust your ‘excess payment’ accordingly.
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