Taking the time to understand car insurance policies and choosing wisely can deliver significant savings.Picture: Adobe Stock

Whether you are taking a ride on sunny days or rainy ones, you are likely to encounter the uncertainties that meet road users each day.

These uncertainties can be in the form of driving mistakes – yours or those of other road users – bad roads, and numerous other hazards that culminate in accidents that can damage your car.

On unfortunate days like that, the insurance policy covering your vehicle is the only thing that builds and maintains your confidence. However, car insurance comes at a cost whose affordability may be termed relative.

As a prudent and wise car owner, you can save on the cost of your car insurance without risking the coverage it provides in the following ways:

1 Compare and evaluate different insurance policies

There are many car insurance companies, and each offers its policies at different rates. Consider taking your time to research various competitive insurance companies and compare quotes and discounts before settling for the best value.

The quotes should be obtained from insurance companies, either those that sell through their agents or directly to their customers.

Remember to check the financial strength and creditworthiness of whichever company you eventually select, as this goes a long way in determining if the seems cost effective car insurance policy is the wisest decision.

2 Be consistent with the same insurance company

Some businesses offer a reward package for loyal customers, and a car insurance company is no exception.

Some insurance companies reward their long-time customers with price breaks and multi-policy discounts.

It is not an automatic offer, and it is imperative to weigh the benefits of consistency with an insurance company over those of separate insurance from different companies.

3 Leverage on low mileage discounts

Among the questions you will likely encounter after signing up with your car insurance company is the number of kilometers you cover with your insured car per year.

High mileage is believed to predispose your vehicle to more damage risks, thereby increasing your insurance premium.

If you can keep a low mileage record, you can incur a low mileage discount according to your insurance company’s mileage thresholds.

One way to keep your mileage low is by opting for public transport sometimes or joining a carpool to work. Better still, you could keep the environment safer and stay healthier by cycling once in a while.

4 Leverage on multiple car discounts

Every business would love to have more customers all at once. It applies to insurance companies as well.

A bulk rate applies when you insure several drivers or vehicles with a single insurance company. Instead of insuring one vehicle at a higher cost, you can pool other qualified cars or drivers and leverage their network to gain good deals that would eventually help reduce insurance costs.

Taking care to drive more safely on the road and avoid accidents can help lower your insurance rates. Picture: Adobe Stock.

5 Drive safely

It is as simple as it sounds but as effective as any other strategy in reducing your car insurance costs.

When you drive safely on the road, you can avoid accidents or violations which would increase your insurance rates.

In addition, insurance companies take note of your driving record and use it to assess your qualification for safe driver discounts. The discounts can be as high as 23 per cent depending on your driving record. It will lower your insurance premium significantly.

6 Downsize your car

Generally, the cost of insuring a huge SUV or other expensive vehicle is more costly than that of a smaller, lower-cost commuter car.

To enjoy cost-effective car insurance, you may consider buying a less luxurious but standard car for daily usage.

In the pursuit of protecting the environment, many insurance companies are now also offering discounts in countries leading the way with plug-in electric vehicles, hybrid cars, or other environmentally friendly vehicles.

7 Consider group insurance

Insurance packages secured in group plans for corporate and professional bodies and alumni associations, among others, often come with reductions.

These discounts are enjoyed as long as the car owner is a recognized member of the group covered by its affiliation with the insurance company.

8 Maintain a good credit rating

Your credit score history shows your creditworthiness and qualifies you for many insurance benefits, such as lower insurance costs.

Ensure you make all attempts to keep it high and solid before applying for your car insurance, as it is a crucial factor that insurance companies consider.

9 Speak with your agent

If you are getting your car insurance through an agent, then you should always feel free to talk with them. Agents usually have more reliable information about discounts and juicy offers from insurance companies.


The cost of car insurance is continuing to increase all the time. Knowing how to save money on it is an edge a canny car owner or driver can have over others by using these insights into the practical ways of staying ahead.

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