How to reduce the cost of your car insurance

Comprehensive motor vehicle liability and insurance costs are incurred regardless of vehicle use and are one of the largest cost blocks along with refueling and repairs. It is advisable to take a closer look at these regular costs: Experience shows that there is significant savings potential for many insured persons!

In many cases there is overinsurance or the insured has had their car insurance calculated based on incorrect information. Then car owners pay for services they don’t need. This applies, for example, to co-insurance for other drivers if no one but the insured person is behind the wheel. In this guide article you will find valuable tips on how to reduce the cost of your car insurance.

This is how you can save money on car insurance!

The following tips can help you with both a existing insurance contract as well as in one Car insurance renewal reduce your costs. If you want to save on an existing auto insurance policy, you should first check your liability or comprehensive insurance contract. Many policyholders can save costs by adjusting their previous contract. Do you want to take out a car policy as a novice driver or do you want to change your car insurance as a car owner? If you pay attention to the following saving tips, then insurers can calculate cheap car insurance for you!

The deductible reduces the cost of comprehensive insurance

If you have full or partial insurance, you can agree on a deductible with your insurer. Most companies offer an amount of around 150 to 500 euros for comprehensive insurance and around 300 to 1000 euros for comprehensive insurance as a deductible. In the case of an insured event, you will bear the costs yourself up to this specified amount, and the auto insurance will pay the rest. This risk is offset by a huge price advantage: When providers calculate auto insurance, a deductible lowers the insurance premium. As a general rule, an accident only happens every few years, but you save on premiums in the long run. By avoiding insurance claims, you’ll realize significant savings.

Tip: Choose the optimal deductible

Basically, the higher your deductible, the more you’ll save. However, make sure that you can also pay this amount in the event of an insurance claim. You must have an adequate financial cushion.

Park your car safely in a garage at night

Most comprehensive insurers give a garage discount: You pay a lower insurance premium if you park your car in a locked garage overnight. With this discount, insurance companies reward the lowest risk of theft and vandalism. Some policyholders park their car in the garage, but have not taken this advantage into account when entering into the contract. Contact your insurer and calculate the garage discount for your auto insurance!

Mileage based on actual use

Even with the agreed mileage, discrepancies between the insurance contract and reality can often be observed. This may be due to the fact that the driving behavior has changed since the conclusion of the contract. Do you drive fewer kilometers per year than those indicated in the insurance contract? Contact your carrier to have them recalculate your auto insurance premium using current annual mileage.

Remove the option of additional drivers from the contract

Many auto insurance policies include coinsurance for your partner, family members, and additional drivers. If different people are behind the wheel of your car, a correspondingly broad insurance coverage makes sense. However, you must limit the group of users if only you or fewer people than insured move the vehicle. In this case, you can save with a contract adjustment for auto insurance.

Take a critical look at the scope of insurance

Many insurers advertise with various additional options. This includes the free choice of workshop and the Mallorca policy. These extras often lead to additional costs. With some auto insurers, you can cancel these services separately and calculate a new premium. The Mallorca policy, for example, insures trips with a rental car in other European countries. If you never drive a rental car while on vacation abroad, you can waive this insurance benefit.

Pay car insurance premium annually

Some policyholders have their premiums billed semiannually, quarterly, or monthly. These payment intervals are usually associated with additional costs. If you want to save on auto insurance, you need to switch to an annual payment method.

Have a class without claims transferred from a family member

If you want to save on car insurance, you should also look at the discount without claims. Insurers reward years of driving with little or no damage. They then place the insured in a higher no-claims class, which means an attractive discount on the quote, the so-called no-claims discount (SF). Policyholders can transfer class SF to spouses, life partners, siblings, children, or grandchildren in the case of a comprehensive or general liability insurance policy. The previous user then loses his authorization permanently, while the family member or partner immediately enjoys the discount without claims. This may make sense, for example, if the grandmother gives up her driver’s license for reasons of age and passes the discount on to the granddaughter beforehand. The savings potential is huge!

Note: Class transfer without claims is restricted

In the case of a novice driver, however, this transfer is of little or no use. Auto insurers limit the acquisition of the SF class to the number of years that the beneficiary of the acquisition has held a driver’s license. For example, someone who has only had a driver’s license for one year can at most scale from SF class 0 to SF class 1. It does not matter if the transmitter is in SF class 1, 5 or 20. A proportional transfer is not possible, the previous user always loses his no claims bonus entirely. For this reason, the transfer is especially suitable for grandparents who want to stop driving due to their age. Recipients should already have had their driver’s license for several years.

Novice drivers can have driving time in the family car credited

Many novice drivers gain experience in road traffic in their parents’ car in the early years. Some service providers take this into account when calculating car insurance when they first conclude their own contract. They classify the young insured in a superior class without claims. Alternatively, young novice drivers should check to see if their parents’ car insurance offers a cheap family rate.

Tip: Save big on car insurance with a comparison!

There are significant price differences between individual auto insurance providers. With a insurance comparison on the Internet you can calculate and classify the price differences for your individual situation.

See if you can save a significant amount of money by switching insurance and Leave the Calculate the cost of auto insurance right here with our partner Verivox!

Changing car insurance is easy: You can change your insurance policy before November 30 of each year. give notice of termination at the end of the year without giving reasons. If your old insurer increases the premium, it must inform you before November 30, you have a special right of withdrawal: you can select a new cheaper provider in December and switch there on January 1.

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