6 Costly Car Insurance Mistakes to Avoid
Age can play a big role in determining what you will pay for your car insurance. Universally, young drivers under 25 are known to pay more for car insurance for two main reasons: their unproven record and proven accidents statistics. According to insurance companies, young drivers have less experience and therefore pose a higher risk for accidents. Often, car insurance can be costly for young drivers and it becomes it’s a real barrier. This might also explain why the percentage of uninsured cars in Saudi is still high.
Thankfully, finding cheap car insurance rates is not necessarily about getting older, but being wiser.
Here’s our short checklist to help you avoid six costly car insurance mistakes. Let’s walk you through it,
1. You need to be more careful on the streets
First and foremost, the best way to get affordable car insurance is to drive safely. Particularly, avoid reckless driving, speeding, and other traffic violations and penalties. Once you start demonstrating your safe driving habits, you won’t look like a risk to your insurer. Plus, with a spotless driving record, you can qualify for a No Claim Discount (NCD) in Saudi!
2. Your car is modified
Many younger drivers see their cars as an extension of their personalities and an outlet for creative expression. What many don’t know, is whatever you add, change, or upgrade, modifications can make your car insurance rates skyrocket. As far as insurance is concerned, the definition of a ‘modified’ vehicle, is a car that has been altered from factory standard, which applies to anything from an engine boost to a custom paint job. Here are few things to remember when modifying your car in Saudi.
3. Your car is expensive to insure
It is no surprise that high-end and luxurious cars cost more to insure than standards cars since they’re more expensive to repair or replace. Also, sports cars are more expensive to insure. Statistically, higher-powered sports cars are more likely to be involved in accidents than a regular sedan or a family car. Remember, insurance companies hate the risk too!
4. You have more coverage than you need
Don’t assume comprehensive insurance is always best for drivers under 25! Especially if you are driving a worn-out old car, then, you’re better off ditching comprehensive car insurance for TPL insurance. Logically, third-party insurance is a reasonable choice for young drivers as it offers the basic level of coverage needed. Nonetheless, you can still find liability insurance with extra optional coverage in Saudi to suit your needs.
5. Your deductible is low
It’s a known fact that young drivers tend to end up in more accidents because they have less experience behind the wheel. For this reason, car insurance tends to be pricey. To help, think about going for a car insurance policy with a higher deductible. A higher deductible is proof of responsibility. As a result, it can reduce your car insurance rates. Most importantly, you have to bear in mind to set your deductible at a level you can actually afford.
6. You haven’t shopped around
While all insurance companies consider young drivers riskier to insure than older drivers, they don’t all upcharge the same amount. What’s more, some car insurance companies in Saudi offer insurance plans devised especially for the youth. So, the best way to find cheap car insurance in Saudi is to use a comparison site. These sites allow you to browse dozens of car insurance policies and compare quotes side by side in real-time.
Yet, sometimes your rates increase unexpectedly
As frustrating as it may seem, even if you’re a great driver, you might suddenly wonder what made your car insurance rates go up. Sometimes, these increases happen because of factors beyond your control, like the percentage of accident claims, car thefts, and the number of uninsured cars in Saudi. Additionally, car insurance fraud can drive up costs for everyone. When insurance companies face higher risks due to these factors, it can lead to increased prices, even for drivers with spotless records.
Considering these factors, it’s wise to explore your car insurance options. Shopping around and comparing different insurance plans could help you find a better deal. Price comparison websites are a fantastic way to easily compare different comprehensive car insurance options available in Saudi Arabia.
Here’s a bonus tip: By getting an affordable car and saving on insurance, you can stash away money and eventually get that dream car you’ve always wanted!