Car insurance

Car insurance doesn't always have to be as expensive as most people think being unaware. There are some ways that you can use to reduce your monthly or yearly premium. If you are really interested in saving some bucks on your car insurance premium then follow our tips and tricks:

1. Compare the insurance companies

Different insurance providers offer different car insurance offers and premiums. My first tip is to change your insurance provider as you can reduce your insurance premium by up to 60 percent by doing this. You can save up to 600 euros every year. A price comparison is therefore hard cash and pays off.

Basically, you should compare the current tariffs every year. If you get a cheaper offer from another insurer, you can usually cancel your car insurance up until November 30th.

2. Consider when buying a car

Which car you decide to buy can affect your insurance premium. Faster and older vehicles in particular are usually more expensive. It also makes a difference whether you’re driving a car which has a diesel or a petrol engine.

The type class

If a certain type of vehicle causes many accidents, the insurance costs for the car model are generally higher.

This means: If you decide to buy a vehicle with a lower type class when buying a car, the car insurance is cheaper. If your car has a high type class, you usually have to pay more.

It is best to find out which type of class the vehicle has before you buy a car. Especially for fast cars you have to pay a higher insurance premium. They have a higher risk of accidents. Even older small cars often have a high type class. 

You can find out which type class your vehicle has in the printed type class index of the GDV or via the online search function.

Diesel or petrol?

Think about the fuel when you buy a car. If you choose a petrol engine, you will surely have to pay less for your car insurance. With diesel, the fuel costs less, but car insurance is more expensive.

You have to decide individually what is worthwhile for you. If you drive a lot (more than 20,000 kilometers per year), diesel is cheaper overall. But if you only use your car occasionally, you should think about a petrol engine.

What’s more: It is also crucial for your insurance premium whether you are driving a new car or a used car. Car insurance is cheaper for new cars because there is usually hardly any damage to the car. In addition, vehicle owners usually drive more carefully with new cars than with older used cars.

3. Consider additional options

Find out from your insurance provider which additional options are included in your car insurance. Then think about which ones you really need.

For example, if you do without the free choice of workshop or the so-called Mallorca policy, you save money.

If you decide to be bound to a workshop instead of freely choosing a workshop, your car will be repaired in a partner workshop of your insurance company. The good news here is that you will be free from great headaches as after you have reported the damage, your insurance company will take care of everything else. The disadvantage is that you cannot have your vehicle repaired at a workshop of your choice.

4. Take advantage of discounts

Each insurer offers different discounts that can lower the insurance premium. Find out which options suit your personal situation. We show you the most important discounts that you can use to save on your car insurance:

Single driver discount: If only you drive the vehicle yourself and no other person drives it then your insurance premium is usually lower. With some insurance companies, however, it is even cheaper if you use the vehicle together with your partner (partner driver discount). If you want any number of drivers to drive the car, you have to expect higher costs.

Garage discount: If you park your vehicle in a lockable garage and not on the side of the road, your insurance premium will be lower. Your car is better protected against vandalism, theft, or storms.

Eco discount: If you have a car that consumes less fuel and does not pollute the environment as much (pollutant emissions), this has a positive effect on your insurance premium.

Online discount: Many car insurance policies are cheaper if you take out the policy online. Because administration and customer service often take place online, the insurance provider can save costs.

Second car discount: If you have a second car, you can insure the vehicle more cheaply. However, the registration usually has to go to the owner of the first car. This is also interesting for novice drivers.

5. Pay the contribution annually

Most insurance providers allow you to pay your premium annually or monthly. If you decide to pay monthly, you have to transfer a fixed part of the total amount every month. If you pay the insurance premium in full once a year, it is usually cheaper.

You should also know that many insurers also offer discounts if you agree to a direct debit. In this case, the insurance premium will simply be deducted from your account.

6. Check the mileage

You should check your mileage once a year. So you know how much you really drive. Do you belong to the frequent drivers and drive about 20,000 kilometers a year? Or do you not use your vehicle that often and only drive around 10,000 kilometers a year?

If you don't drive your car that often, this affects the amount of your insurance premium. Because the less you drive, the lower the risk of accidents and wear and tear on your vehicle. So check your mileage regularly.

7. Check the no-claims Bonus

After an accident, you should use the grading table to check your no-claims bonus. The number of years you've been accident-free will always affect your car insurance. If you had an accident, you have to reckon with a downgrade and a higher premium.

However, each insurance company has set different premiums for the no-claims bonuses. In case you have an accident, you can recalculate your price and change your car insurance. You might be able to save money with another provider. In that case, you can use your special right of termination and cancel your insurance without a deadline. However, your cancellation must be received by your insurer within one month.

To get the best deals on car insurance, get a quote

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