There are a lot of different ways to reduce the amount of money that you have to pay for car insurance. The tips and information below will help you save as much money as possible on insurance for your business vehicle.
When determining your monthly rate, car insurance companies consider all of the following factors:
- The type of vehicle that is being insured.
- Any safety or security features that are installed on the vehicle.
- The owner and drivers of the vehicle.
- How and where the vehicle is driven.
- The amount of coverage that you select.
How Your Vehicle Affects Your Insurance Rates
As a general rule of thumb, choosing a small car will usually help you qualify for a lower insurance rate according to Money Expert. Along with the size of the vehicle, the insurance company will also consider the type of engine that is installed and how powerful the vehicle is.
Some popular ways to save money on insurance include the following:
- Choose a vehicle that is inexpensive to insure and to operate.
- Install the latest security devices.
- Be upfront with the insurance company about the relationship between the owner of the vehicle and the drivers.
- Let the insurance company know how you plan on using the vehicle.
- Accurately estimate the number of miles that you drive your car on an annual basis to avoid overpaying.
- Choose a higher voluntary excess to qualify for a lower rate.
Avoid Imported Vehicles
In many cases, insurance companies charge higher rates for imported vehicles, simply because they are generally more expensive to repair if anything goes wrong. You may be able to save money by avoiding imports and opting for a domestic vehicle instead.
The Right Security Features Can Lower Your Rate
Security features such as car alarms, vehicle immobilizers, or tracking devices can all minimize the risk of your vehicle getting stolen. As a result, insurance companies usually offer a lower rate for vehicles that incorporate these features.
Car alarms are usually relatively inexpensive to install. At the same time, however, they can help protect your vehicle, keeping it from being stolen. This can result in lower insurance rates.
These alarms work by emitting a loud sound if the doors of the vehicle are opened, if the windows are broken, or if the vehicle itself experiences a major jolt. Alarms that incorporate smart technology can even send a notice to your phone when they are tripped.
These devices help keep cars from being hotwired. Before the vehicle can be started, the immobilizer has to be deactivated.
Another way to qualify for a lower insurance rate is by installing a GPS tracking device in your vehicle. That way, if your car is stolen, authorities can easily locate it, helping to ensure that it doesn't disappear forever.
Check Your Vehicle For Built-In Security Features
Typically, cars that were manufactured after 1997 come with vehicle immobilizers and alarms already built-in. You can find this information in the owner's manual for your vehicle. Be sure to provide this information to the insurance company when getting a quote to qualify for a lower rate.
With older vehicles, most security features are installed aftermarket. Because of that, you may have to actually inspect the vehicle to see if there are any security devices installed. If there are, you can also let the insurance company know about these features to save money on your insurance.
Identifying The Vehicle Owner And Any Drivers
Typically, insurance companies provide the lowest rate when the person who owns the vehicle is the one who is driving it. For instance, you may have to pay a higher rate if you own the vehicle but your child drives it or if you have a company car that is driven by employees.
In most cases, insurance companies will require the owner of the vehicle to either be the driver of the vehicle or to be in a relationship with the primary driver.
How Your Vehicle Is Used
The way that your vehicle is used can not only affect your insurance rate - it can also affect whether or not you are compensated in the event of an accident.
For instance, if you tell your insurance company that you only use your vehicle for personal use but then get into an accident when you are using it for business purposes, they may not cover your claim. Be open and honest with them about how your car is used. That way, you can be sure that you are covered for any situation you may encounter.
Common Ways That Vehicles Are Used
Typically, insurance companies classify vehicle use in one of four categories. The cars that are the least expensive to insure are the ones that are used for pleasure or for everyday domestic purposes. Typically, the more miles a car is driven during an average year, the higher rate you will have to pay. The four types of driving include the following:
- Social or pleasure driving, which covers the type of driving that you do in your everyday life such as going to the grocery store or visiting a friend.
- Commuting, which refers to driving your vehicle back and forth from work for to and from public transportation hubs.
- Business use refers to any type of use that is related to the activities of your business. For instance, if you use your car to travel to business meetings, that qualifies as business use.
- Commercial use covers driving that is done for any type of commercial activity. For instance, if you use your vehicle to make deliveries, it would fall into the commercial category.
Choose Your Coverage Wisely
Don't make the mistake of trying to save money by choosing the wrong type of coverage. If you do, you may find it difficult to get compensated if you ever need to file a claim. Below are some of the various types of coverage that are available:
- Third-party coverage. This coverage provides compensation for damage to vehicles or property owned by other parties but does not cover any repairs to your vehicle. Although this type of insurance is inexpensive, it is important to remember that you will be responsible for paying for any repairs if your car is damaged in an accident.
- Third-party, fire, and theft coverage. This type of coverage not only pays for damage to vehicles or property owned by other people but it also helps compensate you in the event of a vehicle fire or theft.
- Comprehensive coverage. This type of coverage protects you against fire, theft, and third-party claims, as well as any vehicle damage that occurs as the result of an accident. Typically, comprehensive policies are more expensive than other types of policies. Some even include cover for issues with tyres and auto glass.
Consider Raising Your Voluntary Excess to Lower Your Premiums
The voluntary excess refers to the amount of money that you have to pay toward the cost of any repairs. If you choose a higher voluntary excess, you will usually have to pay a lower monthly premium.
Park Your Car In A Safe Place During The Night
Most insurance companies will provide you with a lower rate if you store your car in a secure location such as a garage or driveway during the night rather than parking it on the street.