Choosing an insurance contract is not the easiest thing. It can become a real headache due to the huge variety of offers at very different prices. You should also expect your insurer’s rates to increase each year.
To justify this, insurers put forward several reasons including the increase in the number of accidents, the more frequent number of natural disasters and the high cost of repairs and maintenance. It is therefore important to choose your insurance contracts carefully, so as not to pay unnecessarily for protections that are of no use to you. For this, you need to know the criteria on which insurers base themselves to set the amount of insurance premiums and the different possibilities to save money on your insurance.
Summary
Factors influencing the price of insurance
Insurers take into account several factors to assess the price of a premium. For home insurance, this can be:
- the place of residence,
- the age of the house,
- the condition of the roof and plumbing,
- the heating used,
- the date of the last renovation work,
- previous complaints,
- the credit report.
For auto insurance, the insurance premium will vary depending on:
- the driver’s age and sex,
- the type of vehicle,
- of the place of residence,
- the frequency of use of the vehicle,
- past complaints, etc.
It is important to use a trusted insurer located geographically close, in order to benefit from a fair assessment of your premium. To find the ideal insurer and be able to meet him, do not hesitate to go through a specialized directory that will list all the insurers around you. All you have to do is play the competition!
Tips for paying less for your insurance
There are several ways you can save on your insurance.
Request multiple quotes
Obtaining quotes from several insurance companies is the first thing to do to reduce your premium, and start possible negotiations. So don’t be in a hurry to sign the first contract you find, because you might find better deals elsewhere. You can also call on an insurance broker who will find the best offer according to your needs for you.
Take into account the vehicle used
The type of car you drive has a big effect on car insurance premiums. The power of the vehicle will thus be taken into account, but also the type of car in question (the insurance of a small sedan will be less expensive than that of a 4X4 for example).
Adjust deductible
Insurance is a necessary evil. Whether it’s life, home, health or auto insurance, insurance protects you against losses that you could not financially bear. It is therefore important to take out the insurance contract you need to cover any damage, but no more.
A deductible of 100 euros is far too low. If you can manage a loss of 1,000 euros, why set a deductible at 100 or 250 euros? You are simply buying insurance that you do not need.
How much can you save by increasing your deductible? The answer varies from person to person. This is why it is best to consult your insurer. However, according to studies, it is possible tosave 9% by increasing your deductible from 500 to 1,000 euros.
Combine contracts with a single insurer
If you have several insurance policies, it makes more sense to combine them with a single insurer. Why ? First, because it’s an easy way to simplify your finances. It is much easier to work with one insurer than with two or more. Secondly, you can benefit from a discount. Combining auto and home insurance with one company sometimes gives you the right to a discount.
Have a good credit history
In most cases, insurance companies take your credit history into account when setting premiums. There is, in fact, a significant correlation between the way you manage your finances and your claims history. The difference in premiums can be significant. A bad credit report could therefore have an impact on the amount of your premiums.
Reduce coverage
Just as you can increase your deductible, you can also save money by reducing your coverage. As cars age, the need to insure against damage to the car decreases.
In some cases, the premium you might pay for comprehensive and collision coverage, plus the deductible you choose, can exceed the value of the car itself. Since the value of the car itself is the maximum reimbursable by these coverages (in the event of total loss), consider whether to add them to your policy.
In addition, it is important that you inform your insurer of the actual use of your car. A car that travels few kilometers can in fact be assigned appropriate insurance, with a reduced cost..
Compare insurer prices every year
Loyalty is rarely rewarded when it comes to insurance. Indeed, it is often new registrants who benefit from discounts from insurance companies. Therefore, question your insurance every year and get into the habit of comparing rates, and submit interesting offers to your current insurer so that they agree to lower your premium. It’s easy to do thanks to online comparators, and it only takes a few minutes.
Drive safely
Obvious advice, but one that can have a significant impact on your premium! You can keep premiums low by avoiding accidents and fines.
Optimize your home security
You can lower your insurance bill by installing security devices against theft such as an alarm system. This applies to both car insurance and home insurance.
How to find a trustworthy insurer?
In order to prevent risks in all their forms, it is important to choose a reliable and trustworthy insurance company. Today, with online reviews, specialized directories and different insurance comparators, it is easier to find a good insurer. It’s up to you to know how to determine your needs to benefit from the best contract. Make sure that your insurer is able to meet the agreed commitments stipulated in the insurance policy. A good insurer is an insurer who listens to your needs and makes the effort to meet them.
