Car insurance is costly, there are no two ways about.

Since we travel a lot – both as a family, or when I go on road trips or to visit our families when I’m alone with kids. Now, speaking of kids, there is no way we are not going to get the best car insurance, especially with two young kids.

Anything happens, and we’re out of our Christmas budget. Or our Disney budget will take a hit.

Read also: Tips For Inexpensive Family Travel

Since there is no point in further proving how keen I was in my search, I decided to share some tips on how to choose a good car insurance (and keep your budget in place!).

These tips are here to help cut those costs.

1. Mileage

You should consider the amount of mileage that you will likely do. The mileage you go through impacts your premium, whereby the higher it is the higher the premium will be and vice versa. As you can appreciate, over-estimating your mileage will lead to paying more money than is actually necessary. On the other hand, you should refrain from under-estimating the mileage as it can lead to unnecessary complications. For instance, it could jeopardize your claim or lead to additional costs while claiming.

The best way to effectively estimate your mileage is to keep tabs on your mileage each year. Doing this will give you an accurate figure during premium renewal.

2. Car Value

Another important aspect that you will need to consider is the value of your car. Accuracy in this matter is of critical importance as it indicates the amount of money that an insurer potentially has to pay in the event of a claim when your car is stolen or written-off due to an accident. Thus, you do not want to over-value your car nor do you want to under-value it. When you use a value too high, it will inevitably lead to paying higher premiums as it is considered a higher risk.

If you do not know the value of your car, you can use Parkers to get a free valuation of car manufactured in 2000 or later or use the paying service rendered by Auto Trader where you pay £3.50.

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3. Car Security

Although this may seem like a trivial matter to keep in mind, it nonetheless contributes significantly in determining your premiums. The more secure your car is, the lower the risk of a making claim and thus the lower the premiums. In this regard, if you have a driveway or garage, make use of it and explicitly mention it in your form. You can also add an alarm, a car tracker, and an immobilizer to make your car safer, and thus reduce the premium even further.

4. The Type Of Car You Have

The type of car you have will also influence your premium. If you have an inexpensive car powered by a small engine, you can expect to pay lower premiums. On the other hand, if you have an expensive car with a powerful engine, you will pay considerably more. In this regard, sports car and high-end SUVs usually attract hefty premiums.

With this in mind, when you buy a new car, always check with the insurer to determine the kind of impact that your new car will have on your premium.

5. Do Use Another Car Regularly

If you make use of another a car on a regular basis, mention it in your form as it can reduce the cost of your premium.

6. What Do You Use The Car For?

The use of your car will also influence the cost of insurance. If you mainly use your car for commuting or for social reasons explicitly indicate this for lower costs. On the other hand, if you use your vehicle for business purposes, state this to ensure you get the right coverage.

7. Car Modifications

Modifying your car has two effects; it can result in increased premium costs or it can void your policy. With this in mind, try can much as possible to refrain from conducting extensive modifications.

8. Pay The Excess

Excess is the amount of money you voluntarily pay when you are making a claim. In this regard, if you are comfortable in paying for the excess of a higher amount, you lower the risk for your insurer and end up paying less for your insurance. You should consider Money Expert’s car insurance comparison service for the best deals.

9. Your Occupation

While you might not think about it, the fact remains that your occupation influences your insurance rate. Certain occupations tend to attract higher premiums (real estate agents and journalists are a good example) as historical trends indicate that they tend to make more claims. As such, they are classed as ‘high-risk’.

While you cannot change your occupation simply to lower your premium cost, you can tinker with the wording of your job description to reduce the risk of being classified in the ‘high-risk’ category. If you are successful in changing the wording, you can reduce the cost of your premiums.

However, do not be tempted to state any inaccurate information. In doing so, you run the risk of jeopardizing the claims that you make.