Cars make our lives easier, no doubt, but spending so much time on the road means we the risk getting into car trouble often. Accidents happen, and that is why having a suitable car insurance is both prudent and smart. It gives you peace of mind – knowing that if an accident happens, you’re covered for the repair costs.
Such a key service comes at significant yearly expense of maintaining your car insurance policies. Because of its importance, many of us will continue paying the premiums even when they are raised. In this case, the bad news is that insurance isn’t likely to come down in price anytime soon.
But you don’t want to spend a penny more than necessary on a policy, and you shouldn’t have to. To reduce the expense of driving, it is imperative for motorists or car owners to find ways to save on this cost. This calls for car owners to know exactly what affects your auto insurance rates, so you can figure out how to save while ensuring you get the coverage that you want.
PS: In some occasions, it might be important to speak to an insurance agent as there may be other cost savings to be heard in addition to the ones I am going to describe in this article. While at it, always remember to ask if there are any special discounts the insurance company offers, such as employees of a certain company etc. So, this a call for you to review your coverage at renewal time to make sure your policy is in line with your needs.
Here is the good news of the things you can do to minimize your spending on auto insurance consequently reducing the burden on your wallet.
- Price comparison
Prices for premiums differ from one underwriter to the other, so it is wise to shop around and compare prices. You can download mTek Services App from play store and get to compare quotes from different insurers with ease. You can check for recommendations or reviews under the app and do your own due diligence before committing to a given policy.
Buying insurance under the app is simplified and covers all the prospective and informed questions. You can easily upload logbooks, drivers’ license or any other verifiable documents and ensures that you are comfortable with the services you get from the underwriters. It also has a customer care contact to help you chose the right insurance policy for your needs.
- Compare insurance cost before you buy a vehicle
Auto insurance premiums are based in part on the car’s price, overall safety, the cost to repair it and the likelihood of theft among others. Many underwriters offer discounts for features that reduce the risk of personal injuries, car theft or cars that are known to be safe. When you are deciding to buy used or new vehicles also research what each will cost to insure.
- Opt for higher deductibles
When you choose a higher deductible on your car insurance, you can significantly lower your premium costs. You have to be tactical with this move though, especially depending on your driving behavior. Understand that if you have a low deductible, you have more coverage in case of a claim thus you’ll end up paying less out of pocket. On the other hand, a higher deductible means a reduced cost in your insurance premium but you will pay more out of pocket in the event of a claim.
- Reduce insurance on your older car
Understanding what is mandatory and what is optional when building your insurance policy may help you save money in the long run. For instance, if your car is old and worth less than 10 times the insurance premium, having a comprehensive coverage may not be cost effective. In that case, you may opt for a basic auto policy which consists of bodily and property damage liability. This coverage will protect you when you injure someone in a car accident or damage their car or property. To find out if this is true for you, check the value for your car. There are several auto valuers in Kenya who can help you with that.
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- Stick with the same company
Many insurers will give you a discount if you purchase two or more type of insurance covers from them-and/or have more than one vehicle insured. mTek App also allows one to earn extra money when you refer or buy insurance for another person via its PataPesaNaInsurance scheme. Sometimes companies offer discount to longtime customers. However, there are no guarantees so you have to do your homework and for a multi-policy discount from a single insurer with buying your insurance separately from different companies.
- Flexible payment options
When you buy most car insurance policies, you can either pay monthly or annually. If you pay annually, you pay the whole premium in one lump sum, but if you make monthly payments you will set up direct debit. Paying a monthly premium for your car insurance could potentially be more convenient and manageable than paying annually. mTek App aides this convenience by providing daily, weekly and monthly payments for insurance policies from different underwriters.
- Seek out other discounts
There are other special offers for motorists such as those who have not had any accidents or have taken a defensive driving course. Other insurers offer discounts to motorists who have special safety features embedded in their car such as car alarms, air bags, anti-lock brakes among many other security features. So, if you own such a car, you can easily grab huge discounts.