Insurance

How to Save Money with a Car Warranty?

Car ownership is rarely a hassle-free experience. Although cars bring us so much joy, when they fail it is often a big disaster. A car warranty can help you make savings when it comes to repairing your vehicle – it can be described as a form of insurance policy. A basic car warranty will be offered by a manufacturer but an extended warranty can be provided by the manufacturer and also through a separate insurer. Many people will find themselves facing problems with their vehicles because of electrical or mechanical faults and a warranty will provide cover for costs that are incurred due to these faults. This may involve the cost of repairs or parts that need to be replaced. An extended car warranty can provide even greater cover by increasing the time period within which a person is covered for any vehicle problems. Therefore, the extended warranty can save you money. It’s important to look into the details when considering an extended car warranty. More >

Making Your Car Insurance Cost Less

Keeping a car on the road is expensive at the best of times, but it’s even harder during an economic downturn. There’s the price of petrol to consider, as well as road tax and paying a mechanic for all those little running repairs. And of course, there’s also car insurance to buy, one of the biggest one-off purchases you’ll have to make every year.

Remember these handy hints the next time your car insurance renewal reminder comes through, and see how the cost of your premium can fall:

Loyalty doesn’t necessarily pay

Sticking with one car insurance company year on year doesn’t automatically get you cheaper premiums. Although with many comprehensive insurance policies, you will be entitled to No Claims Bonus discounts every year, it still pays to always compare car insurance quotes at every renewal to make sure you get the best possible price.

Colour doesn’t count

You’d be amazed by how many people think that the colour of their car plays a part in how much their insurance costs. They believe red cars cost more because they’re traditionally associated with aggressive driving. But think about it, when you try to get a car insurance quote you aren’t even asked what colour the vehicle is. Insurers care about engine size, the car’s value, and the person’s driving history, but they aren’t bothered whether the car is red, blue, black or green!

New cars can be cheaper to insure

It would make sense to say that brand new cars will cost more to insure than older models, but though this is often true, it’s not always the case. Research has found that depending on driver history, it can often cost less to insure a new car than a five or ten year old version of the same model. Old cars are usually owned by younger drivers, who insurers deem a higher risk, while new vehicles are fitted with the best security and anti theft devices, making them statistically less of a target for thieves.

Higher deductibles equals lower insurance

The simplest way to reduce your motor insurance price is to increase the voluntary deductible, or excess, that you are happy to pay if you do need to claim. The higher the deductible, the lower the insurance quote, but remember you’ll also get a lower payout if you do have an accident. And only set an amount that you are able to afford to pay if the worst was to happen.

Cheapest isn’t always best

In the current economic climate, people will try and get the cheapest deal possible. But sometimes, what looks like the “cheapest” car insurance policy might not be the ideal one for you. When comparing quotes, check to see what is actually included in the policy, as many companies remove optional extras like courtesy car provision. What at first glance might seem slightly more expensive policies could provide greater value if they include these add-ons.

Security features save money

Statistics show that older cars are stolen more often than new models because it’s easier to do so – they don’t have as many up to date security features. Installing anti-theft devices like locks and alarms are a simple way to bring down you insurance premiums – many companies will even give a discount worth up to Rs 500 for doing so.

Comprehensive can be cheaper

To try and save money, many drivers will opt for a third party policy (Motor Policy A), the minimum legal requirement, as they think it will be the cheapest option. However, a growing number of studies have shown that it often works out better value to get fully comprehensive (Motor Policy B). Third party insurance is usually bought by higher risk young or new drivers, and insurers have adjusted their prices accordingly. It definitely makes sense to at least compare how much third party or comprehensive insurance will cost.