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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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CONSIDER THE MAKE / MODEL OF YOUR CAR

Purchase a sensible car. Luxury vehicles that is expensive to repair, cars that are popular with thieves or vehicles with a poor safety record can be a lot more costly to insure. Buying a huge SUV is exciting, but if you want to make a significant saving on your insurance premiums, the smart choice would be to buy a reasonable car with added safety features as well as a good alarm/immobilizer system or anti-theft devices. Older cars are often cheaper to insure than their more modern counterparts.
Remember, each car make / model has its own claim record and the insurer calculates the vehicle premiums based on its claim experience. Ask your insurer for a list of the vehicles’ risk levels which you might be interested in.
A few companies might also offer a discount for driving a hybrid or alternative fuel vehicle. Cars with heavy fuel use are usually in a higher insurance class, whereas cars that are more environmentally-friendly tend to have lower insurance costs.

ANTI-THEFT DEVICES

Vehicles that are kept in a locked up garage and/or cars fitted with anti-theft systems are less likely to be stolen, and hence less expensive to insure against theft. Policy holders can lower their premiums significantly if an anti-theft device is installed in the vehicle. Ask your agent or insurance company about discounts offered on any of the following devices:
• Car alarm / Immobilizer / Ignition cut-off anti-hijack systems
• GPS Tracking devices
• Visible wheel or steering locks
• VIN chemical etching
If the motivation for installing an anti-theft device is to lower your insurance premium, compare the costs of installing such a system with the insurance savings before making a final decision.
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