3 Essential Steps to Reduce your Car Insurance Premium

Driving costs money. People starts spending money from the point they decide to be drivers. The first bill is the school driving fees, then the car cost, tax and finally insurance. However, not everyone pays the same premium for auto insurance as there ways you can lower it to an amount you can afford:

Buy the Right Car

If you are a new driver, it makes sense to purchase the cheapest vehicle available. Not only you are reducing your chances of totalling the car and losing it entire value, but you are also saving money on car insurance. Cheaper cars can be fixed, repaired and even replaced at a fraction of cost than high end sedans, sport or even classics vehicles.

Pay Yearly

Many insurance providers advertise their rates on monthly bases, so they look affordable. Rates such as $57, $72 and $109 a month look much more tempting than anything over $600. However, if you choose to pay for your car insurance policy on a monthly basis, the insurer will add interest to the rates. Interests are usually calculated on a monthly basis and can reach a few hundred dollar a year easily.

Paying for you premium yearly is the most cost effective way of reducing you car insurance cost. You can always request a partial refund if you decide to sell or change your vehicle before you policy runs out.

Don't Claim too Often

By no means imply that you should not report accident to your insurers immediately. What we are referring to here is simply dealing certain situations with the best cost effective approach. If you had a minor incident, not involving other vehicles or property, like hitting your own fence or applying the wrong cleaning product to your paint, there is no need to call the insurer up. Simply fix it yourself if the it proves to be cheaper. As the old saying goes, prevention is better than the cure. Don't drink and drive, drive sensibly and be polite to other fellow drivers avoiding common road rage. All these will lower the risk of you being involved an accident and raising claim as a result. The less claims you have, the more likely your insurance company will place you in lower risk group and charge you less on your policy premium.