Each year, car insurance rates increase. An increase in the number of accidents, cost of repairs and labor, frequency of natural disasters, the severity of the bodily injury the reasons were given by insurers are numerous to justify these increases.
Obviously, the increase is more or less marked depending on the products. Generally, auto and home are the most affected sectors of insurance.
Tips to save on your insurance premium
Challenge your insurer every year because fidelity pays only very rarely and the best prices are usually reserved for new insureds
This rule is, unfortunately, true for many products and services, including telephony and television subscription contracts. So it is good to go around the market (to get an idea of prices elsewhere) and to play the competition.
- Compare to identify cheaper contracts with equivalent guarantees on the market
- To have a good view of the insurance market, you have to compare the contracts, and thus identify those that are cheaper than yours, for equivalent guarantees.
- Use an online insurance comparator to save time, efficiency and completeness
- Compare online is free and actually saves a lot of time, imagine if you had to move or call each insurer to study its formulas!
Emphasize an online actor, often less expensive, for connoisseurs
The advantage of privileging the insurers present only on the web is also not to pay the brand or the physical agency, and thus to benefit from better offers. In the case of car insurance, this is important now.
Negotiate with physical insurers by offering auto and home, a second car or a provident. Insurers are more flexible if they insure more contracts
If you have multiple contracts and services in the same brand, this can give you access to cheaper rates from your insurer.
Adjust the warranties as close to your needs as possible (vehicle age, kilometers traveled, values of movable assets, etc.)
It’s obvious: pay only what you need. This is as true for the mutual as for the car and the home.
Choose the annual payment as fees are applied for monthly payments
If your insurer offers a monthly payment rather than an annual payment, be aware that the total amount of your premium will be higher. Paying your car or home insurance premium at one time means a reduction.
Increase deductibles to lower the cost of insurance
This is a tip of which few know, but who can play on your insurance premium in the long run.
Pay attention to the reporting of small claims that may impact the amount of premium while personal care may be more economical.
It is true that taking care of small repairs directly will prevent you from being penalized and that your insurance premium will increase.
Do not reduce your guarantees to save in the short term because in the long run and in case of an accident the calculation could be bad.
This last tip goes hand in hand with the sixth. So remember this: list your needs, and adapt the guarantees as much as possible. Be careful, your needs can change from year to year, so review them each year at the same time as you go around the insurance market to compare your contract with available offers.
Rising tariffs: how and why?
The insurance rates vary according to three criteria: the loss experience of the previous year and the following year (estimate), the commercial strategy applied (search or margin restriction) and the financial returns of the moment.
Auto insurance will increase between 0 and 2.5% for 2015 due in particular to the rise in the cost and frequency of personal injury claims in 2014 (by 5%), which can be explained by the good weather and the fall in the price. fuels, which have made the French drove more, and also by the new risk behaviors of drivers (more and more frequent use of smartphones driving).
The rise in auto insurance is however moderated by some insurers who have frozen their rates voluntarily, thus favoring commercial strategies of conquest to anticipate the competition with the entry into force of the Hamon law on January 1, 2015.
The home insurance will undergo an increase of 2.5 to 5%, because the sector practiced quite low levels of premiums, having underestimated the weight of the climatic events and natural disasters that the year 2014 has known.