Cheap Car Insurance Premiums:  Five Steps to Getting Affordable Coverage

While it’s true that you need car insurance, it’s not true that you have to pay more than you can afford.  You can do some really simple things to cut the cost of car insurance. When you know where to look, you can find cheap car insurance premiums.

Step 1 – Decrease the Risk

The easiest way to cut your car insurance premiums is to cut the risk and accept a higher voluntary excess. An insurer's standard excess may be $100 but if you meet the first $250 of any claim, you'll see a reduction in your premium. This is because you're taking on more of the risk so you get a discount. But it's a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft or a bill for repairing bodywork damage after a car park crunch.  If you have not had much issue in the past, this may be a good option.  If you have to call on your insurance a lot or have a lot of accidents or thefts, it may not be as good an idea.

Step 2 – Save with Security

A great way to save is make your vehicle as secure as possible.  Most insurance companies will offer a discount if you have a car alarm and even more if you have an OnStar system. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind that your vehicle will be safe.

Step 3 – Drive Less

Many insurance companies offer a discount for those who drive less than 5,000 or even 10,000 miles per year.  The average driver puts about 15,000 miles on his or her car per year.  The less you’re on the road the less risk you pose to your insurance company so they pass the savings onto you.

Step 4 - Named Drivers Trick

Know that by adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. As you are probably aware, adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!

Step 5 - Shop Around to Save

The best way to find the cheap car insurance premiums is to shop around and see what is out there. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and drivers. Start off using good comparative online quotation sites, take their best quotes and go direct to the cheapest car insurance company for more specific quotes.  This is a great option because you can see what is out there, shop around, and decide what to do before you renew your premium.