How Can You Decrease Your Automotive Insurance? | MyWalletHero – Motley Idiot Germany

Car insurance is only a fact when you own a vehicle. However, that doesn't mean that you just have to settle for your renewal price. In fact, it is almost always better to compare car insurance quotes before purchasing a new policy. There are also several ways to reduce premium costs. Let's take a look at your options.

Do not renew automatically

Unfortunately, in the auto insurance world, loyalty doesn't usually pay off. Renewal prices tend to be higher than if you did a little browsing. So when your renewal offer hits, it's always worth jumping over to a comparison site like MoneySuperMarket or QuoteZone to see if you can bring the price down.

Pay annually

While it is more convenient for you to pay for your car insurance monthly, it will cost you more in the long run. This is because monthly payments are essentially a loan agreement so you end up paying interest as well. As a result, the total costs are significantly higher in the course of the year.

Think about how you use your car

How you use your car and where you park it can have a huge impact on the cost of your car insurance premium. If you don't use your car for commuting, you don't need insurance to cover it. And if you park your car in a garage at night, this reduces the risk of break-ins and thus lowers your supply.

However, it is always important to provide specific information when obtaining a quote for car insurance. If you are not honest you risk voiding your policy.

Increase your voluntary deductible

Your voluntary deductible is the amount you are willing to pay to have your car repaired or replaced before your insurance covers the rest. The higher your voluntary deductible, the cheaper your car insurance will be. However, remember that in the event of a complaint you will have to pay this amount. So make sure it's a figure that you can afford.

Build up your no-claims bonus

Building up your no-claims discount makes your car insurance cheaper. Your many years of damage-free status proves to an insurer that you have a good driving history and are therefore safer.

You can even choose to have your no claims bonus covered. This is usually an added bonus and can add to the price of your policy. However, this means that if you end up having to make a claim, you won't lose the entire discount.

Pay only for what you need

Auto insurances offer all kinds of add-ons. Puncture Protection, Legal Assistance, Windshield Cover, and No Claims Discount, to name a few. It is best to think about which add-ons would benefit you the most and whether the extra charge is worth it. If you weren't going to use it, you weren't paying for it.

Look at the black box technology

Many insurers now have a telematics policy. Here you mount a device on your car that measures how well you drive. Of course, having the device reporting that you are a safe driver can lower the cost of your car insurance.

Some offers on MyWalletHero come from our partners – this is how we make money and keep this site running. But does that affect our ratings? Lower Austria. Our commitment is to you. If a product is not good it will be reflected in our rating or we will not list it at all. While we strive to offer the best products available, we don't review every product on the market. Find out more here. The statements above are owned by The Motley Fools only and are not provided or endorsed by any bank advertiser. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard and Tesco.

Comments are closed.