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6 Practical Tips to Save on Auto Insurance

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auto insurance tipsMost drivers make the mistake of not shopping around for the best price and just accepting the renewal quote of an insurer which usually tends to be pretty higher. Due to the reorganisations to compensation payouts, there is a hike in car insurance premiums that motorists are facing. Furthermore, there is a rise in insurance premium tax, due to which there will also be an addition of £10 to bills for bill payers.

All these factors make it even more necessary for you to make sure you aren’t overpaying for auto insurance.

Thankfully, there are a few ways with which you can reduce your auto insurance costs. Whether you are looking for auto insurance for older drivers or young drivers, males or females, you can take these steps to lower your auto insurance premiums.

1. Shop Around

You won’t believe but you can save hundreds of pounds just by shopping around while renewing your insurance. However, be careful. Make sure you are comparing apples to apples. You may find some cheaper policies but they won’t give you the same level of cover when it’s time to make a claim.

An online comparison site is the best for this purpose. You can check insurers separately that are not featured in the comparison sites.

2. Don’t Include Everyone in the Policy

Make sure you name only regular drivers in the policy. Some can always be added for a few days when they are really in need to drive the car.

3. No-claims Bonus

A no-claims bonus is the sole best way to cut auto insurance costs; hence, protect it. It may raise the premium by a few pounds, but it becomes insignificant when compared to the potential loss of a 90% discount on a premium of many hundred pounds.

4. Increasing Voluntary Excess

Being ready to pay more for the cost of an accidental repair will bring the cost down. If there is not your fault in an accident, you will get the excess recovered. But avoid the temptation of rising it too high, particularly if your car is of lower value.

5. Securing Your Vehicle

Adding security devices to your vehicle attracts a discount of about 5%. Several new models of cars are available with these features already. Make sure you have them and remember to declare them.

6. Avoid Monthly Payment

Avoid the temptation of direct debit installments because they pose high interest rates. A solution is to borrow the funds on a 0% purchase credit card and then repay it within a year.

Follow these tips and you can enjoy saving of big bucks on your auto insurance.

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