The price of car insurance has fluctuated a lot in 2020, with the coronavirus pandemic leading to much of the unpredictability. At the beginning of the year, the cost of insurance soared for many, with some reporters claiming that the jump was the highest amount it had been in two years. At the moment, we’re unsure as to what will happen. Costs could fall due to less drivers being on the roads, or they could increase due to more people driving rather than using public transport.
No matter what happens during the remainder of the year, it’s always good to know how to save money. Here are four tips that will work in 2020.
Use a Comparison Website
It’s never a good idea to stick with the same provider year-on-year. It may be easier to just accept their quote for the next 12 months, but it’s certainly not the cheapest way to insure your car. Instead, consider comparing car insurance on Quote Goat. This reliable website helped 51% of consumers save £264.64 on their car insurance in 2019, and it literally takes less than five minutes to perform a comparison. Deciding to compare car insurance is one of the key things you can do to save money, but make sure you go with a vetted site. Some other more well-known names can quote you more than if you were to shop directly with the insurance company.
You can also use a comparison website to determine the products and services of different insurance providers. When choosing an auto insurance company, it’s important to research the reputation of your prospect to ensure that your money is in good hands. It’s a good idea to choose one that’s known to approve car accident claims without too much hassle.
You might also want to avail an insurance plan from an insurance company supporting advocacies. For instance, you can compare Greenslips with other car insurance companies that support environmental projects, such as tree planting, to help reduce carbon emissions and give back to Mother Earth.
Install a Black Box
Black box – or telematics – insurance is especially popular with young drivers and those new to the roads. However, it’s an option for all drivers of all ages. How it works is a black box is installed in your car which provides the insurance company with data on how far you drive and how safe you drive.
Rather than using a general profile of your demographic to give you a quote, insurers can use this data to provide an accurate quote based on you personally. If you are a safe driver, and only travel on roads close to home, you could see your car insurance premiums fall dramatically. An added bonus of installing a black box is that it can be traced if your car is ever stolen.
Work Out Your Average Mileage
When you fill in a car insurance comparison quote, you’ll be asked to estimate your annual mileage. This is then taken into account when providing you with quotes, and it’s a good idea to be as accurate as possible. If you overestimate your mileage, you’ll be paying a higher premium than you need to. And, if you underestimate your mileage, you may find that your provider refuses to pay out should you need them to.
Pick a Safe Car to Drive
While this probably isn’t something that you’ll be doing this year, it’s worth considering safety the next time you purchase a new car. Cars that come complete with crash mitigation technology, and better protection for the driver and passengers will be cheaper to insure.
Cars with smaller engines, and small cars in general, will also see you paying less for your insurance. Unless you really need a high-powered sports car, it’s best to get a run of the mill safe model instead. Good examples of safe cars to choose include the Toyota Yaris, the Skoda Citigo and the Kia Rio.
Be a Good Driver
Insurance companies gauge the amount of insurance premium car owners pay based on several factors, including a driver’s risk of getting an accident. You’ll pay a lower amount of insurance premium if you don’t have any record of traffic accident or violation. On the other hand, your insurance policy will have a higher premium if you have been involved in driving under the influence (DUI) or car crash.
You can save money on your car insurance by being a defensive and calm driver. If you do, you’ll less likely meet a roadside accident along the way. So, equip yourself with the right information by taking online courses about defensive and safe driving or speaking with an expert.
While we don’t know how rates will be affected over the next few months, with the tips outlined above, you should be able to save money on your next car insurance policy.