The cost of insuring a car has risen dramatically over the last several years. If you aks the players involved in the insurance industry; the insurers, the lawyers and the consumers, each will have a different answer as to why.
The insurers claim it is the increased amount of awards given to accidents victims as settlements. These awards are not capped and have nearly doubled in average amount since 2013. The lawyers claim it is the price undercutting done by the industry to run out competition. Those too low rates now need to be compensated for and can be because of less competition. Now the insurers are overcharging consumers. Consumers complain that both groups are out to get them and that neither is treating them fairly.
Whatever the real reasons are, consumers need to be more discerning about who they engage to find great insurance coverage for them. Companies like Chill Insurance get you the best rates but do not skimp on coverage. So hiring them can save you money and headaches if you get into a wreck.
But you need to understand all that you can do to make sure that you can cut costs when you shop for insurance. Here are some tips:
Drive the Right Car
Insurance rates for autos can vary widely. Convertibles cost more than hard tops, cars with bigger engines cost more than ones with small displacements, and sports cars cost more than minivans. Insurance rates can sometimes even within the same car class. Rates may vary based on how often they type of car you drive is stolen, how many accidents it is in very year compared to the miles driven, how expensive it is to repair, and other key factors. So if you are buying a car, call your insurer and compare insurance rates between the cars you are choosing from. You might find that you can save hundreds of dollars a year simply by picking one car over another.
Never Lower the Amount of Coverage on Your Vehicle / Raise Your Deductible Instead
When you put a down payment on your car, the bank will demand that you get full coverage on your car. This is to protect their investment in case you get into an accident. If that happens your insurer will pay the back the full amount need to repair the car, the other person’s car if the accident was your fault and for the cost of any injuries from the accident. This full-coverage insurance can be very expensive.
When you pay your car off to the bank or do not take out a loan, you will be tempted to lower the amount of coverage on your vehicle or even purchase a low amount right off if you pay cash for your car. This is a really risky idea that depending on the accident can cost you a lot of money and have you end up without a car. You should always get the highest level of coverage available.
If you find yourself in a position where this insurance is too expensive, a better option is to get a higher deductible. The deductible is the amount you have to pay out of your pocket before the insurance company must pay. In most car insurance the deductible can be varied and as you make it higher, you insurance rate will drop. Try and strike a balance between what you can afford out of your pocket and what you will need for your insurance to pay. For instance you might be able to pay for any damages below €600. Using this number as your deductible, you can pay less for the same insurance coverage as someone who has a €250 deductible. You can vary this deductible to see what is most comfortable for you and save money in the process.
Finally, when you talk with your broker make sure that they present all of the insurance options available to you so you can make the most informed choice. It appears that insurance rates in Ireland will continue to be lofty, so use these tips to try and save money.