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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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SHOP AROUND (Up to 20% Saving)

Every year your existing policy is renewed by your current insurer and often your monthly premium goes up markedly as well. Consider shopping around and obtaining quotes from competing companies every year just before your current policy is renewed. Insurance premiums can vary widely between insurers as their risk analysis based on various factors such as the vehicle make, model as well as your neighbourhood are given different weights.
Don’t be afraid to switch from your current insurer – A number of larger insurers will actually offer you a substantial discount, just for switching to them. They will probably charge you a higher premium the following year, but then you could shop around again for the best deal.
Shopping around can really pay off, but remember that the cheapest option is not always the wisest decision. Study the documentation carefully and make sure you understand the insurance contract completely and that you are comparing apples with apples.


Safe drivers are rewarded with a better insurance premiums. Most insurance companies offer a ‘no claim’ bonus to policy holders who maintains a ‘clean record’ for a specific period of time.
With some companies, your premium might decrease every year / month whilst keeping a ‘no claim’ record, in the form of a specific percentage reduction in your premium in the successive year. Other insurers might have a bigger ‘cash back’ pay out after a number of years which increase with each claim-free year. Avoid claiming, and you could save significantly on your premium.


Many of the newer insurance companies offer ‘low-mileage discounts’ to drivers who drive less than average kilometres per year. Less time on the road means fewer opportunity to be involved in an accident, and this often translates into a lower premium for you.
Some companies have pay-per-km programs that track your actual distance travelled as well. Low mileage discount programs will make the more sense for drivers who have a short commutes or who rarely drives. Ask your insurance agent about possible discounts if you are an infrequent driver.
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