Imperial Auto gives tips to save on insurance costs

Insuring your vehicle is an essential line item in your monthly budget. It will make sure that you're covered in the event of an accident - even if the other party isn't.

8 Oct 2015

Image: www.freedigitalphotos.net

What's more, your finances won't take too hard a beating if you need to pay for repairs needed after a collision, even if you unwittingly caused the crash.

Insurance premiums try to capture the risk of an individual's claims experience - and there are many factors that influence this risk. Insurance companies try to capture the number and type of claims an individual may have (influencing factors are age, sex, claims history, number of years of driving experience etc), together with the cost of these claims (which include vehicle value and parts prices).

Relationship with broker

While there's little you can do to change the past, there are steps that you can take to reduce your premium in the future, according to Imperial Auto. However, start by building a relationship with your insurance broker, so that you know and trust them to give you the best advice.

Choose your vehicle carefully. While you may want to reward yourself for all your hard work with the most expensive car you can afford, remember that parts prices and vehicle value are key components of premium rates.

Shop around for the best price, either with the help of your dealer or on your own, as you are entitled to insure the vehicle with an underwriter of your choice.

Ask your insurer if there's any discount for paying the year's premiums in advance.

Touch base with your broker or insurance company on the anniversary of your policy each year. As the value of your car depreciates, the cost of your insurance should fall too.

Ask your insurer to calculate if your car insurance will be cheaper if you insure other items - such as your house contents or jewellery - with them too.

Make sure that your insurer knows all about you. You may get discounts for advanced driving courses, for being of a particular age or gender, or for living in a particular area.

Be honest. Even though the premium for a car used for business may be higher, if you tell your insurer that your car is only for private use and they find out that you spend all day, every day driving it from appointment to appointment, they're likely to repudiate a claim. You may have scored on cheaper premiums, but you won't feel so smart when the insurer cites this as a reason for not paying out in the event of a claim.

If you're confident in your driving abilities - and the liquidity of your savings - negotiate a higher excess. This is likely to reduce your monthly premiums, although you will have to contribute a greater excess if you do have an incident. The long-term savings may worth it, though.

Many insurers offer discounts if your vehicle is fitted with a tracker system. Remember, however, that trackers incur a monthly cost; so do the calculation to make sure that the reduced insurance cost is worth that monthly subscription.

Drivers who are particularly confident about their driving skills, and their ability to manage their risk of claims, are well suited for insurance cover based on driver behaviour.

Industries

Features

In the news

Trending

Subscribe & Follow

BizTrendsTV

Jobs

Imperial Auto gives tips to save on insurance costs

Relationship with broker

Share this article

Top stories

More news