Wouldn’t you love to get your car insurance at bargain rates? There are a number of proven ways to cut your premiums and, whilst most of them are no secret, many of us neglect to put them into practice. You just have to know what to do and where to go and your premiums could tumble.
Cutting the cost of your car insurance is more important than ever these days. According to the AA’s British Insurance Premium Index, the average annual comprehensive motor insurance premium is running about £822 annually. That’s it’s highest rate ever. But you can cut your car insurance premium in half if you shop around carefully and pay attention to a few little factors that can raise or lower your car insurance costs.
1. Shop around.
Shopping around is the key to getting the best possible rate on your car insurance. Whether you’re buying cover for the first time or renewing your existing policy, you should check insurance comparison sites to find the best possible deals. Ask for quotes from a number of different insurance providers – but be sure that you check the same options with each provider so that you are comparing like with like.
2. Get quotes from an insurance broker.
Insurance brokers represent many different insurers, so when you work through a broker, you can check prices from a range of insurers at the same time. Do keep in mind, though, that your insurance broker has an agenda as well – and will only tell you about the insurance providers that he or she represents.
3. Buy directly from the insurer.
When you cut out the middleman, you’ll save because there’s one less cut to be taken out of the pie. One way to benefit from both the variety offered by an insurance broker is to check quotes through a broker and then get a direct quote from the insurer’s web site.
4. Check multiple quotes through an insurance comparison site.
There are two kinds of insurance comparison sites. One is a broker site, where many insurers are represented and the web site owner gets a commission for each referral to an insurance company. The other type is the independent price comparison search engine which offers honest comparisons and reviews. You can apply for quotes online both through the broker site and at the insurer’s own web site and decide which offers you the best deal.
5. Get quotes for no-frills and internet-only car insurance
If you want comprehensive car insurance but are not bothered about all of the optional extras included in many policies, you could save money with simple, no-frills cover. These offer all the comprehensive cover basics to keep you on the road but cut out some of the options many drivers never use to save you money. You could also cut your premiums by using internet-only insurers who keep their overheads low by only selling and administering their policies online. They claim that these savings are passed onto the customer in lower premiums. Again, the key is to shop around and confirm these claims for yourself.
6. Buy your insurance online – but not before double-checking your quote on the phone or in person.
Buying online will typically save you 10% to 20% on your premium, but it’s not a hard and fast rule. Be sure to check with the insurer directly as well though.
Shopping around can really pay off but, keep in mind that there are other things you can do to cut your premiums as well. The top five tips for reducing your car insurance premium in addition to shopping around for the best deal are:
1. Reduce the number of miles you drive annually.
2. Add your partner to your policy.
3. Avoid making claims for small accidents.
4. Pay for your insurance annually.
5. Take an advanced driving course.
Simon Christopher
http://www.articlesbase.com/finance-articles/secrets-of-cheaper-car-insurance-326052.html
any secrets to paying off a $20,000 car loan or trading it in on something cheaper?
I bought a new car about a year ago…. Im having trouble now with making my payments and insurance for it. Can I go to a dealership and trade it in on a cheaper car. I realize i will have to take a loss but Im willing to sacrafice up to $5000 on it just to get out of the insurace and payments. If i can lose $5000 on it and then buy a $3000-$5000 car, and only be paying on a $10,000 loan instead of $20000 and have cheaper insurance, it is deffinatly worth it to me!!!
Auto finance is what I do for a living and this is the problem your going to run into.
Lenders are not allowing large L.T.V. (loan to value) loans right now so anything you can find for $3,000.00 to $5,000.00 will never book high enough to borrow $10,000.00 against it.
You also have to consider your most likely at least 5-6 thousand dollars upside down on your existing loan.
Good luck.
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Finance Manager for a car dealer for over 9-years.
I have been a car saleman for many years and let me tell you you are not alone in your situation.
The first thing you should do is contact your lender and find out the exact pay-off.
When you trade a vehicle in you are selling it to the dealer for a wholesale price. The dealer looks at your car then he figures what he needs to do to it before he can put it on his lot for sale. They also look at the fact that if it does not sell how much they can get for it if it goes to the auction.
Here is an example: You find a car you like say for $10,000 your trade in gets $17,000 and you owe the bank $21,000. So you are $4,000 in the hole. That $4000 gets’ rolled into your new loan. That would be an additional $80 worth of payment a month just on the roll over. Remember for every $1000 you finance that equates to about $20 worth of car payment.
You said you wanted to find a car for $5,000 your problem is getting a bank to loan you the money on such a small amount. The bank will book out the car which could be worth around $3,500 and then you are rolling over $4,000. So, unless you have great credit this deal has a good chance of not being bought.
Your best bet is to find something that is more expensive.
Rmember cash down is a big factor. If you have $3,000 down everything could change. Remember, You are trying to eat up most of the negative equity on your trade-in.
The bak will also look at your gross income per month and your credit score.
If you have any other concerns contact me at: rjfont16@yahoo.com
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