Before deciding which car to buy, it is wise to consider all the maintenance cost and insurance costs that come with that car. Motor Trade insurance budget is worth planning for and can not be ignored while buying a car because one must asses their financial abilities if they will afford the insurance costs of the specific car they wish to purchase. Car insurance can be considered as expensive budget but there are ways one can try and minimize the cost of insurance.
- Pick the right car
When shopping for a car, one should consider if they will afford all the liabilities that come with that car they desire to purchase. Expensive cars attract high insurance costs. One should purchase a car that fits their financial abilities to maintain the car on the road not to buy an expensive car that they won’t be able to pay for their insurance policy. For a person with low budget, they should buy cheaper cars that will attract low premium rates.
- Car security
A well secured car in terms of alarm systems and immobilizers are considered less risky to be stolen since they have the security systems. When going for evaluation, one should fit all the necessary security systems which will make the insurer give discounts hence lowering the cost of insurance like normally Motor Trade King is willing to do for their customers. The insurance agent may give extra discounts to cars that are usually packed in a garage overnight than a car left on the driveway or on the streets overnights.
- Avoid car modifications
Cars with lots of modifications such as expensive alloy wheels, expensive music systems and body kits are likely to attract higher premium rates than cars with normal features. If one must add these extra features, they can remove them when taking the cars for evaluation and fit them with normal parts or request the insurer not to consider including them on the policy.
- Pay premiums per year
Insurance policy holder who pays their insurance premiums per year get better rates than those who pay in monthly installments since the insurer discounts such payments. When paying monthly, there are interest charges that are levied on the policy which in the end turns out to be substantial big amount that could have been avoided if the policy premium were paid once for the year.
- Increase your car excess
Excess is the money paid upfront in case one makes an accident and they will claim for compensation. Voluntarily increasing this excess rate gives the policy holder an upper hand in discount rates from the insurer. When one decides to increase their excess, it portrays that their intention is not to solely make claims but a way of setting their minds that they will try their best to avoid accident not to pay this huge excess hence better premium discounts.
- Level of coverage
Comprehensive insurance are the more expensive insurance policies than third party. Insuring the car comprehensively will mean higher premium rates than when one would have taken the third party coverage which is cheaper.
- Add a driver on the policy
One can bring down the cost of insurance of their vehicle by endorsing another driver who is more experienced or older than them on the policy as the main driver of the vehicle. Young drivers can write their parents as the main driver who will be driving the car which means that the premiums will be lower than that of an inexperienced driver since experienced drivers are usually given discounted premium rates.