According to studies, the increase in car insurance rates should be between 1 and 2% in 2021. This upward trend has been going on for several years now. However, it is possible to lower the bill. Our tips for paying less for your car insurance.
Use the competition thanks car insurance comparators
Since the Hamon law, it has become much easier to get rid of your car insurance. Introduced on January 1, 2015, it allows you to terminate your contract as soon as you wish, as long as it is at least one year old, and this without any additional cost. The aim is clear: to increase competition and lower premiums. A measure that is bearing fruit according to our insurance expert: “Each year, the cancellation rate increases by about one point. In 2015, 15% of policyholders cancelled their contract each year. In 2018, we are close to 18%. The impact is real and this law is prompting organizations to question themselves. A client who tells his insurance company that he wants to leave forces it to renegotiate the terms of the contract and lower the premiums”.
In view of the prices posted by insurers – between 555 dollars (for a third party insurance) and 680 dollars per year (for a comprehensive policy) according to the latest data – this competition can be useful. To help you, there are of course comparators and brokers that you can easily find online.. The last two promise respectively, 235 and 335 dollars of savings on the annual bill, all types of contracts combined. For the entry level, at about 500 dollars per year, the savings can go up to 100 dollars, promises our insurance expert. a 20% reduction. All this in “6 or 7 minutes”. You can test our car insurance comparator and make great savings!
Opt for online car insurance
No doubt about it. Direct car insurances are generally cheaper than traditional establishments. According to our insurance expert, these online offers allow you to obtain between 20% and 30% discount on an entry-level contract with almost similar guarantees. And he adds that on mid-range and top-of-the-range contracts, the difference can even increase: between 30% and 40% compared to a traditional contract.
Car insurance per kilometer: a good alternative for small drivers
You drive less than 8,000 kilometers per year? Then opt for an insurance policy proportional to the distance driven. These mileage-based car insurances promise great savings: up to 50% for some insurances. “If the driver has a good bonus, the system is very advantageous when you stay under 4,000 kilometers, or even 2,000 kilometers with a worse coefficient. The solution is also interesting for an old car/collector’s car over the year,” says our expert. According to Capital’s projections, a motorist who drives 2,000 kilometers per year in his small car would pay 199 dollars per year for an all-risk insurance, against 371 dollars with a classic contract, that is to say almost half as much. Under the same conditions, her annual premium would amount to 292 dollars if she drove 5,000 kilometers with his per-kilometer insurance, compared to 462 dollars with a classic contract.
Cheaper car insurance for young people with connected boxes
It is particularly recommended for young drivers, because insurance companies are often not very kind to them. “Often the premiums of young people are very high, because insurers can not distinguish between young drivers who drive dangerously on Saturday night to get home and those who use it much more carefully, “says our insurance expert. As a result, they pay about 50% or even 60% more than a classic profile for the same guarantees, which quickly adds up to several hundred dollars per year. Thus, an all-risk insurance will cost them on average 1,179 dollars per year, against 680 dollars for the national average,
A simple solution consists of installing a communicating box in the glove compartment of the vehicle. This small device then automatically collects data and evaluates the insured’s driving based on certain criteria: average speed, braking or sudden accelerations, among others. If the driver’s score is very good, then he or she is considered a risk-free customer. “His premium can then be reduced by up to 40%. This is enough to almost erase the extra premium paid by young drivers”, says our insurance expert. For an experienced driver, on the other hand, the savings are much lower, in the order of a few dozen dollars per year.
Remove some unnecessary guarantees and renegotiate your car insurance contract
It is necessary to look for all unnecessary options or clauses in your contract. “These adaptable formulas make it possible to add or remove certain guarantees when desired,” explains our expert. For example, you can choose the amount of the deductible, the sum that remains payable by the driver following an accident and which is therefore not reimbursed by the insurer. It is thus possible to increase the deductible by several dozen dollars in exchange for a reduction in monthly premiums of up to 15%.
Another adaptable option is the legal protection, a clause that allows you to benefit from legal assistance in case of litigation. It costs you an average of 60 dollars per year (5 dollars per month) and is not necessarily useful since you can only benefit from it if the case is brought before a court. The glass breakage guarantee can also be offered as an option by some insurers, Allianz for example. Taking it out will automatically lower the bill. The same goes for the loss of points assistance, which allows you to obtain a lawyer free of charge to contest your loss of points or driving license.
More generally, if you realize after a few years that you have taken out an insurance policy with unnecessary options, you should not hesitate to change your policy to one that is better suited to your needs. “You should know that loyal customers generally have the possibility to negotiate with their insurers clauses better adapted to their needs without fundamentally changing the contract”, adds our insurance expert.
Do not declare small claims
Paradoxical. It is sometimes useful not to use your insurance, even though it is an obligation in case of claims. Some “small” accidents – scratches on the bodywork or on the headlights, glass breakage -, if they are reported, will harm your bonus coefficient. It is then better to pay the amount of the repairs yourself. For example: if you are totally responsible for a small collision with a car because you ran a red light, you will see a 25% penalty applied to your bill for the next two years in case of declaration to the insurance company. That is 170 dollars more for 2 years on the 600 dollars of your comprehensive insurance. To which you must add a deductible of about 500 dollars for repairs. This brings the total bill to 840 dollars. If the repair is not too expensive and you can afford to pay for it yourself, this is the best option.
Go for a cheap car
Are you planning to buy a car for the first time or change it? Be careful with your choice. The more powerful the car, the more expensive it will be to insure because it is more likely to be damaged on the road. The same reasoning applies to age: the more recent your vehicle is, the more expensive it is to insure. These are the two main criteria that determine the amount of your premium. Here are two examples of models that would get a very interesting premium according to Reassure me:
- A comprehensive insurance at 35 dollars per month for a 2009 Citroën, with a 54 year old male civil servant as the main driver and a 50% bonus for more than 6 years without any claim or infraction.
- A single third party plan at 21 dollars per month for a Peugeot 106 driven by a retired couple living in Nantes, with a private garage and a 50% bonus for over 3 years.
Choose a cheaper cover with time
The age of your vehicle is a key factor in calculating the amount of your premium. The older the vehicle, the more it loses value. It is therefore useless to keep a high level of coverage for old cars. You will find formulas such as: a comprehensive insurance for vehicles up to 4 or 5 years old, a third party + formula up to 9 years old, and an entry level third party formula beyond that.
Favour accompanied driving for the permit
Since January 1, 2019, it is possible to take a post license training and reduce its probationary period from 6 months to 1 year. What to reassure the insurance company and thus obtain rates a little less expensive. There is even the possibility of reducing the amount of premiums during the driving test. If you opt for the accompanied driving option, for example, let the insurer know because this could allow you to reduce your premium by 50%.
Reduce the risk of theft
There is no limit to the imagination of insurance companies. Certain accessories can indeed reduce the amount of the premium. “If the vehicle is equipped with a tracking system, for example, a reduction of nearly 5% per month applies with Axa for a high-end vehicle like a BMW. Quite logical, if the risk of theft decreases, so do the premiums.
Find out about the discounts offered
Some organizations give you a discount if you have several types of contracts with them (car, health, home) or if you insure several vehicles. Some even apply the loyalty principle by reducing your contributions over time. Another trick: some insurances offer discounts during the first year of the contract. By systematically cancelling your contract after one year, you can take advantage of this for many years.
Pay annually for cheaper car insurance
If you have the possibility to pay your 12 monthly payments in one go, you should choose this solution because it often allows you to benefit from discounts that vary on average between 5 and 8%.