In Ireland, auto insurance has been steadily increasing over the years and is now at a point where the issue isn’t in getting a car but in being able to pay the rates for insurance.
According to theAA Car Insurance, one of the biggest issues car owners face in Ireland is the cost of car insurance. If you are also in this shoe and wondering how to beat the excessive motor insurance rates in the country, then you are in the right place.
These increased premiums over the years are as a result of issues like high legal cost, fraudulent claims, amongst others. As a result of this, we have come up with some tips on how to beat down your premiums to a more reasonable amount.
However, you have to first know the factors that affect your insurance premiums. The major factor is the type of car you use as cars with a smaller engine have a relatively cheaper insurance premium when compared to cars with big engines because the latter have a higher risk of collision.
Also, your occupation, where you park your car, the age of the car, and whether or not it is a new car all play huge roles in determining how high your premiums will go when doing your car insurance.
To avoid all these leading to your premiums skyrocketing, you have to make sure you make use of some of these tips;
- Get an accurate value of your car: Always make sure you get the correct value for your car when doing your insurance. No matter how much you call the value of your car, the insurance company has its own ways of knowing the market value of your car.
Therefore, if you increase the value of your car, you will only be increasing the cost of your premiums. However, you also have to bear in mind that if you undervalue your car and it’s written off in an accident, you might find it very difficult to replace.
- Local/Regional Insurers may be your best bet: Many of us usually prefer going for big names whenever we need products or services. However, statistics have shown that in the case of car insurance, local and regional insurers often provide better customer satisfaction than the big name. This might be due to lower premiums. So, be sure to check them out when looking for an insurer.
- Take advantage of discounts: Very often, insurers offer different types of discounts as a means of marketing to customers. Some of the popular prerequisites for these discounts include bundling your car insurance with other policies, having a clean driving record, insuring multiple cars, owning a car with certain security features to prevent theft, and being members of certain groups and professions.
Therefore, you should take time to check if your insurer has a discount going on and what the prerequisites are. It might just help you cut down on that excessive premium.
- Never default on Payments: Your credit rating also plays a huge factor in the quotes you receive from your insurers. Several insurers tend to increase the premium with those with a low credit rating as they believe those people have a higher chance of filing false claims.
Improving your credit might go a long way in reducing your premiums by hundreds of euros annually. So, improve your credit by paying your bills on time and also track your progress often.
- Investigate the insurance premiums of a car before buying it: Very often, we only concentrate on factors like fuel efficiency and repair costs when looking for a car to buy. However, it is important to also investigate how much it would cost to insure the car before buying.
Studies have shown that some of the vehicles with low insurance rates in Ireland include Toyota Yaris, Fiat Panda, Ford Ka, Peugeot 107, Citroen C1, and so on.
- Add a more experienced driver to your policy: Although it is a crime to lie about who the main driver of a car is, you can always add someone up as a secondary driver. Using a more experienced driver as your secondary driver can go a long way in reducing your car insurance cost.
For this, you need to first get permission, then you add someone who has a clean driving licence and no history of false claims to your policy.
- Pick an accurate job description: How you describe your occupation also plays a role in the premium you pay for your car insurance. For example, saying you’re are a chef will result in your paying a higher premium compared to if you say you are a kitchen staff. Same as how saying you are a construction worker will result in you paying more than a builder for car insurance.
However, saying you are a house wife or retired will result in you paying less compared to saying you are unemployed. But, as much as it pays to see how different job titles relate to your insurance premium, you should never give a false job title. Saying you are a court clerk when you are a lawyer is illegal and you could be charged with fraud.
Apart from the above, there are myriad other ways you can beat down on your premium. For example, an AA membership or some other insurance could have covered some extras on your car insurance, making it unnecessary to opt for them again and thereby reducing your premium. The important thing to know is that you should always do a thorough study before picking an insurer and then you can cut down on your premiums.