When you buy a car, it is essential to plan a separate budget to pay certain expenses, including car insurance. Fortunately, there are some tips to take into account to lower the cost of car insurance.
Play the competition
To save on your car insurance, don’t hesitate to compete!
The entry into force of the Hamon law in 2015 allows everyone to terminate their insurance as soon as they wish , at no additional cost.
This law was put in place by the government to allow consumers to lower their insurance premiums by comparing offers. The result is a general reduction in prices.
A decision that can only please the insured.
To take advantage of the most advantageous offer on the market, contact two to four insurers, compare the quotes and make your choice! To save time, it is best to use an online comparator. This tool is very easy to use and can really save you a lot of money.
Note that it is possible to entrust the mission to a broker.
The latter has all the skills and knowledge necessary to find you the contract that corresponds to your profile and your budget.
Note that online car insurance can also be an excellent option. They are cheaper than traditional insurers. Online offers allow customers to have a reduction of 20% to 30% on their contract, or even more when it comes to a high-end contract.
Adapt your car insurance contract
In this section, I will highlighting the tips to adopt correct car insurance contract in order to stay on a low budget.
1. Increase the deductible amount
To lower the price of car insurance, the easiest way is to increase the amount of the deductible. Some insurance companies agree to lower the rate if the customer pays a higher deductible in the event of a claim .
With some auto insurers, a 50% deductible increase is synonymous with a 15% rate reduction.
Also, be aware that a small accident can cause you to pay a deductible. Sometimes, when the car suffers a minor shock, it is better not to declare it to the insurance .
Indeed, it would directly impact your bonus-malus . After an accident-free period, you may see your premium drop.
In addition, note that the breakage deductible at 0 euro is really useless.
Why? Because it is rare for a driver to declare several glass breakages over a period of 3 years, knowing that the deductible is expensive.
For a Mégane, for example, the insured must count a deductible of 33 euros per year, or 99 euros over 3 years, to avoid a deductible which costs only 70 euros.
2. Reduce the scope of warranties
Certainly, we are reassured when we take out an all-risk contract, but the annual premium to be paid is relatively expensive .
To save a few tens of euros, it is advisable to reduce the level of guarantees mentioned in the contract.
Our advisors recommend that you opt for the extended third -party formula .
It is a contract that covers the driver’s bodily injury, theft, fire and glass breakage, even when there is no third party responsible. On the other hand, it does not compensate in the absence of a responsible third party.
By choosing this formula, the driver reduces the amount of his premium by more than 30% , or approximately 100 euros per year.
The insured pays approximately 60 euros per year for his legal protection .
However, this rarely works, especially when the case is brought before the court.
Ditto for the loss of point insurance.
This allows you to have a lawyer free of charge to contest the loss of points or driving license.
These are clauses that can be deleted from the contract and renegotiated our car insurance.
In short, it is advisable to remove any unnecessary options.
3. Pay the premium annually
If your budget allows it, it is better to pay your insurance premium in one go rather than in 12 monthly installments. Thus, it is possible to benefit from a reduction ranging from 5 to 8%.
4. Opt for car insurance per kilometer
You don’t drive your car much? Do you only do a few tens of hundreds of kilometers a year? Car insurance by the kilometer is for you.
As its name suggests, it is simply insurance proportional to the distance traveled by the vehicle. Our expert advisors estimate that this option can save up to 50%.
This solution is increasingly recommended for collector car owners. Indeed, the use of car insurance per kilometer can save up to 170 euros, or even more for certain vehicles.
5. Do accompanied driving
This method of learning reduces the amount of the premium. Do not hesitate to report this point to the insurer.
Once you have obtained your license, if you are not buying a vehicle immediately, add yourself as a second driver to your parents’ insurance contract.
You will build up a positive history in order to take out insurance in your name and you will benefit in part from the bonus/penalty backed by your parents’ contract.
Equip your vehicle for responsible driving
This section will be mainly talking about how to equip your vehicle for responsible driving which will directly decrease cost of car insurance.
1. Adopt the connected box
For young drivers, it is strongly recommended to install a smart box in the vehicle. It is a system that reassures insurers and allows the driver to benefit from a reduction on his car insurance contract.
With automobile claims that are more expensive and frequent than the average, young drivers see the cost of their auto insurance much higher.
On average, it pays 60% more than a classic profile, and this for the same guarantees.
For all-risk insurance, for example, he would pay an average of 1,800 euros, while the national average is around 680 euros.
To save on his car insurance, the young driver can simply install a connected box. This device analyzes and grades the insured’s driving based on several points: average speed, braking, cornering, etc.
Depending on the score obtained, the company will grant a discount on the insured’s premium.
This reduction can be up to 40%. This is what we call “Pay how you drive ” insurance.
2. Install an onboard camera
Don’t forget to install an on -board camera inside the vehicle as well.
Some insurance companies grant a discount to policyholders who have this device in their vehicle.
The lower the risk of theft, the more you save. Installing a dashcam generates more responsible driving. It also makes it easier to settle disputes in the event of a claim.
If the driver and his vehicle present less risk, the insurer may offer his insured an insurance contract up to 30% cheaper.
3. Buy an old car
Bet on Grandma’s car! Drivers of powerful vehicles pay a high insurance premium because they are likely to have more costly claims than the average.
This is the importance of the tax horse! It is therefore better to choose a less powerful car, which presents less risk of theft and which is less polluting.
Indeed, “sports” type cars are more often the target of theft and vandalism.