Last Updated on May 20, 2021 by MoneyVisual
Everybody likes to own a car, but a few of you have the potential to afford the maintenance cost. Auto insurance and fuel quickly add up car expenses, and you find a large chunk of your money out at the end of the month.
Due to the increasing prices of automobiles, insurance premiums are also going up, and bad news is they will not going to whittle down very soon.
There is no denying that automobile expenses are very high and they are often overlooked, but now is the time is to figure out ways to cut back on them as much as possible.
One of the great ways to reduce the overall car maintenance cost is by buying a fuel-efficient car and shortening your commute. However, this is not a feasible option in all circumstances. Yet, you can save hundreds of Euros by cutting down on your auto insurance cost. Here is how you can do it:
#1: Shop Around for a Better Policy
Even if you are renewing your policy, you should not fight shy of shopping around. Other companies may likely have lower quotes. You can access information on their websites or directly call the executive.
However, picking up a company with lower pricing policy is not always the wisest option. You must choose a company that has the wherewithal to pay the insurance claim in case of damage or theft.
Before you make a decision, ask your friends for the recommendation. Before you enter into the contract, make sure that you have asked about all crucial facts not to catch up surprises later.
#2: Drive Safely and Slowly
Auto insurance is expensive, no doubt, but it can be exorbitant when you have accidents. Never forget that the insurance company takes into account the real-time condition of your car every time you renew the policy.
The more the damages, the higher the cost will be. It is better if you avoid accidents by driving slowly. If you are mindful while driving, you can dodge accidents and injuries.
#3: Take a Defensive Driving Course
A defensive driving course is the best way to reduce the cost of your auto insurance. You will have to take the course lately to be eligible for the discount. Another benefit of this course is it can help you have removed points your license carry due to violation of traffic rules.
Make sure that it does not cost you a fortune, and you have a sufficient amount of savings, so you do not face a cash shortfall when an unforeseen expenditure pops up.
In case your budget falls short of the course fee as you must have other financial responsibilities to owe, you can look over the borrowing options. The marketplace does offer financial ways to tackle any funding gap like in your case.
For instance, you have a choice of approaching profitable loans without blacklist in Belgium available on reasonable norms. Use the borrowing funds, complete this course, and you will get the benefit every year thereafter.
#4: Ask for Behavioral Discounts
Excellent driving skills can help you get the policy at a reduced premium. Some companies are out there that offer discounts to drivers that have a clean history.
If you have not ever violated traffic rules and regulations, you will save a lot of money on insurance premium. Try to keep your driving record clean and take advantage of it.
#5: Pick Up Your Credit Score
Credit score also affects the size of the premium. It is also known as an auto insurance score. Whether you like it or not, a poor credit rating can add up the cost of your auto insurance.
If your credit rating has gone down by a few points, you can see a significant rise in the insurance premium the next time when you review your policy. You may not give a toss to a slight improvement in your credit score, but you can save a lot of money if you jump from a bad credit rating to good credit rating.
So, if you are struggling with a poor credit score, start making efforts to improve it. If you have no idea how to start, you can take suggestions from financial experts. Some direct lenders like Credit Pont provide financial counseling to people struggling with debt.
#6: Increase Your Deductibles
The deductible is the amount you pay to the insurance company before the insurance sets in motion. Lower deductibles mean higher insurance premiums. Ask your insurance company how it can affect the amount of premium. Do not forget to consider the impact of accidental history.
Make sure that you ask about it in detail to avoid unpleasant surprises. Plenty of ways are out there to reduce insurance costs. Before you make any move, make sure that you have taken into consideration your circumstances.
You may like to read: Tips to Reduce Learner Driver Car Insurance Costs
However, the best way to reduce the insurance cost is by buying a fuel-efficient car. It is crucial to understand that the coverage cost depends on the type, model, and size of the vehicle. Therefore, the next time when you buy a car, you should keep all these factors in mind.