There are not many ways to lower your insurance premium, as your insurance premium is calculated on a huge variety of factors. There is a common misconception in the market that if your vehicle value depreciates, your car insurance must also decrease. To be honest it does make logical sense to argue that, but that argument is only based on one of many things that the insurer takes into consideration to calculate your insurance premium.
So what are the other factors that insurers use to calculate your insurance premium? The more obvious answers is your risk, address (location), age, how long you’ve had your license, etc.. will have an impact on your premium. That is why these questions are asked when taking out your new insurance policy. What you don’t know is that the insurer also needs to calculate the cost of parts on your vehicle, how long will it be in storage when an accident occurs and what the penal beater fees will be, these are just a few factors.
So how do I lower your premium? Well you have options:
Review your policy on an annual basis: You get rewarded certain discounts for not claiming every year, called a no claim bonus (NCB). When your NCB increases from 1 year to 2 year etc, your risk becomes less. With these discounts other insurers can possibly give you a better premium.
Spread your risk: If you are only going to insure your vehicle, it is worth checking what the insurance premium will be should you add your home contents to the policy. There are insurers that will approve additional discount as the risk is now better for them to take on.
Increase your excess: This means that your first amount payable is more, so basically you are helping the insurer to cover costs.
Keep your policy up to date: It is very important to notify the insurer or your broker if you move from one area to another as the risk calculation for your new area can be lower.
Add additional security features to your vehicle: By installing a tracking device on your vehicle means that you will assist the insurer to recover the vehicle if and when it is stolen, meaning cutting costs.
Insure for market value: Should your car be written-off or stolen (total loss), the insurer or insurance broker will arrange payment on the current market value at the time of the loss. Insuring your car at the market value is cheaper as your car depreciates on a yearly basis and this will make your insurance premiums lower too.
Discuss and ask your insurance broker or insurer about these options.