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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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The general consumer might not beware of the fact that insurance companies sometimes make use your credit score as part of the criteria for calculating your insurance premium. One might think that your credit score has nothing to do with insurance, but the theory is that people who take good care of their financial situations, will also be a more careful type of driver.
Generally, the better your credit rating, the lower your insurance premium will be. To decrease your insurance premium, be sure to pay your bills timeously, and make sure to challenge any credit reporting errors that you might find on your report.


Most insurers will provide a discount for policy holders who have completed / passed an approved advanced driving course, such as ‘defensive driving’ or ‘accident prevention’. Be sure to ask your insurance broker about this discount before signing up with a specific insurance company. If the sole purpose of such a course is to reduce your premium, make sure cost of the course will translate into a big enough insurance savings. Generally a 3-5% reduction is offered.
Also note that insurers recognize that drivers who join motorists clubs generally have lower accident rates, and may also offer further discounts for members.


Paying for your insurance cover annually is significantly cheaper than paying for it monthly. The high cost of insurance may make monthly installments more affordable and convenient, but costs associated with admin fees, billing statements and / or bank charges due to direct debits quickly adds to the total insurance costs.
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