Factors That Affect Your Premium: Car Insurance Rates Explained

The thought of your car insurance premium shouldn’t be enough to give you the heebie-jeebies. To give you some peace of mind, we’ve put together a few tips to help you get an online car insurance quote with savings so good they’re almost scary.

1. Drive Safely and Avoid Distracted Driving

Prevent encountering any scares on the road by avoiding distracted driving. In a world that’s full of distractions, it’s extra important to remain focused on the road. You can do so by adjusting your car settings such as radio station, GPS destination and heating before setting off on your journey, as well as ensuring that your phone is put away. The more mindful you are, the more accidents you’ll be able to avoid—which will keep your insurance premium low.

Avoiding penalty points is another sure-fire way to keep your insurance premium as low as possible. Driving below the speed limit, not breaking traffic lights and, as mentioned before, not having your phone out will all ensure you won’t find yourself on the wrong side of the law.

2. Add Additional Driver To Your Insurance Policy

Adding another driver to your policy may help you reduce the cost of your premiums. You could reduce your premium by teaming up with your spouse by getting insured on the same policy and vehicle, so long as they are also driving the vehicle. If you also get your home insurance from AIG, this will lead to even greater savings while protecting all the things that matter most to you.

3. Consider Paying a Voluntary Excess

When looking to keep that premium as low as possible, you can choose to pay a voluntary excess. Voluntary excess is an amount you can pay before your car insurance covers a claim in the event of an accident. This amount can vary, but the higher it is, the less your premium will cost on an annual basis. Accepting a higher excess is a way to reduce your premium but be aware, you must be able to pay this amount yourself if you claim on your policy.

4. Consider Driving Less

In these strange times we are being encouraged to stay home as much as possible and avoid any unnecessary excursions. You can use this to your benefit, as the lower the number of kilometres you drive a year, the cheaper your premium will be. This also has added benefits that stretch beyond COVID. Taking public transport, cycling, or walking instead of taking the car will save you some money on your car insurance and has the bonus of improving your overall health and fitness.

5. Be Aware of Unexpected Frights

Before you buy a new or used car, check into insurance costs. When buying a used car, ask for a detailed overview of the vehicle’s service history and whether if it has been involved in any crashes. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. However, you can reduce costs with features that reduce the risk of injuries or theft. Ensuring the car has an alarm and a safe place to park will not only reassure you, but also save you money.

6. Options for Young Drivers

Signing up for car insurance as a young driver might seem scary, but we have options to help younger drivers to reduce their premium. Check out AIG BoxClever, our affordable car insurance for young drivers. If you are under 27, you could get big policy discounts for installing a telematics box in your car that tracks how you drive. The safer you drive, the more rewards you will receive and the longer you can stay on the road.

Sign Up with AIG Car Insurance Online

If you get your car insurance online with AIG, we’ll give you a 10% discount right off the bat. That’s a brilliant way to save you money but also so much more convenient. Follow the above tips to get monster savings on your car insurance and you’ll discover that our promises of a cheaper premium aren’t hocus pocus.