6 Reasons you’re spending too much on your Car Insurance

Posted on by Forest in Autos, Car Insurance, Guest Posts, Insurance, Saving Money & Finances

This is a guest post

6 Reasons you’re spending too much on your Car Insurance

It’s something of a holy grail for anyone who drives a car: the quest for cheap car insurance. Many people go to great lengths to make sure they get the best possible deal on their insurance, but many others end up paying more than they need to. Read on for six reasons you’re spending too much on your car insurance.

Failure to compare policies
Too many people simply stay with the same car insurance company for years on end, even though they could get a better deal elsewhere. With a growing range of comprehensive price comparison websites available for you to use and a wide selection of car insurance companies to choose from, doing your homework could save you considerable sums of money.

Even asking your current insurer if there is another deal they could give you can make a difference – and the worst they can do is say no, so it’s worth a go, right?

Value of your car
Another reason some people end up paying more than they need to for their car insurance is because of the value of their car. Of course, if you have a really nice car then it makes good sense to have comprehensive insurance and things such as cover for the cost of repairs in the event of a collision. However, if your car has got a low ‘Blue Book’ value, the cost of replacing it would be relatively small anyway and so it’s not always worth your while having the additional insurance. If your car is worth less than $5000, this is an issue you might like to think about.

Unnecessary coverage
As well as having unnecessary coverage for cars of low value, it’s possible for all other cars to do the same. For example, do you really need that tow package? If you have a separate roadside recovery policy, it’s likely you’ll get towing cover in that already. Go through your car insurance policy carefully to make sure it has absolutely everything you need – then take another look to see if there’s anything that you don’t. It could save you money.

Rate of deductibles
If you have a low deductible rate, it’s likely you’ll be paying more for your insurance as a result. If you pay more for your deductibles, such as by accepting a 20% liability, this will be reflected in the cost of your car insurance – effectively meaning that you’ll be paying less for your cover. This is something to think about carefully as it could mean you have to pay more in the event of an accident, but if you have a history of careful driving, it could be worthwhile.

Unnecessary modifications
If you make any change to your car that isn’t related to security, it’s going to have an impact on your car insurance and push up the price. This is on top of the cost of making the modifications themselves, so you could end up unnecessarily and significantly out of pocket.

Not enough security
If your car isn’t secure or is kept in a place that’s considered risky, you could also be paying more for your insurance than you need to. Installing an alarm system can reduce the amount you pay for your car insurance, as can parking on a drive or in a garage rather than leaving it out on the road.

Note from Forest: It’s always good to take a look at things you pay for month on month. It’s easy to get complacent and not review everything you pay because it seems like hassle to change things up but when you can save a lot it. I hope this post got you thinking. Please take the time to comment if you have anything to add.

Tags: auto insurance, car insurance