The cost of auto insurance continues to increase in line with an increase in the cost of living as well as risk factors on the roads. However, that does not mean that proper car insurance must always cost an arm and a leg. Likewise, lowering car insurance premiums will not always amount to less than adequate coverage.
Here are some of the ways on how you can reduce your auto insurance premiums in New Zealand
Shop Around
Shopping around would be a good starting point for anyone looking to save a great deal when it comes to auto insurance costs. People who have stuck with the same insurance company for long would always be surprised on how premiums vary from one company to another.
It’s very much possible to get the same auto insurance policy from a different company but for hundreds of dollars less per year. Therefore, the best way to end up with the best rate in auto insurance is to shop around and get quotes from several companies.
There are systems online that allow you to enter basic information of yourself and car and the coverage you want. In this way, you would be able to compare costs before signing up for one.
Opt for Annual Premiums than Monthly Premiums
It is an open secret that people who pay monthly auto insurance premiums end up paying more than those that make a lump sum payment for the whole year. Paying annually can end up costing 10% less as compared to making payments every month.
If you are not able to make premiums for the whole year, you can also opt to settle premiums semi-annually, conversely, enjoy some discounts. However, prior to making any payments, it would always be wise to compare prices from time to time, to enjoy any discounts that might have come into play.
Drive Safely
Being a safe and careful driver is a sure way of keeping auto insurance costs low all over the world. Drivers with a clean record on the roads are often awarded low premiums as insurance companies deem them to carry less risk.
For people who have had several accidents prior to applying for an auto insurance cover, higher auto insurance rates are usually inevitable. Violations such as speeding tickets or running red lights can also trigger higher costs from insurance companies.
It is important to note that driving history affects auto insurance rates more than anything else.
Drive a Cheaper Car
The fact that auto insurance is a necessary evil for anyone looking to drive on New Zeeland Roads calls for extra caution while buying a car. Before you buy a car, it would be wise to compare various car insurance rates for the models you might be considering.
While buying a huge SUV might sound exciting, being prepared to contend with higher auto insurance premiums is important. Top of the line vehicles tends to cost more when it comes to auto insurance compared to lower-cost commuter cars.
An Insurance company is likely to offer discounts on premiums on hybrid air alternative fuel vehicles such as electric cars.
Increase Insurance Excess
Insurance excess is simply the amount of money you agree to pay when you make a claim on a policy. The higher the amount of excess you agree to foot, the lower the amount of premiums you would end up paying.
Savings on Insurance excesses vary from one insurance company to another. Therefore it is important to compare everything prior to signing a policy agreement. Always ask your insurance agent or company, the amount of premiums that would be affected once you raise your deductible.
