7 Tips and Ideas for cutting car insurance rates and costs

Car insurance is essential to protect you financially when you are driving on any road type, and it’s important to get the best car insurance rates regardless of whether you only have liability insurance or full auto coverage.

What is the average of car insurance rates?

Car insurance rates are different for every driver, according to the country you live in, your choice of an insurance company in Egypt, and the type of car insurance coverage that you have.

But when trying to save money on car insurance, you have to think carefully about the best car insurance rates and how to minimize the cost.

Car insurance rates in Egypt

As we said, there are 2 types of car insurance: compulsory and supplementary.

There are no specific car insurance rates for each, but it varies according to some factors like:

  • The type and capacity of the car engine
  • The year of the car model.
  • Changes every year as a result of the instability of the Egyptian currency.

For example; If you own a car with a 1600-liter engine, the insurance value is approximately 108 pounds annually, with the possibility of changing this cost at any time.

Compulsory Car insurance rates in Egypt

Compulsory car insurance rates in Egypt:

  • In the case of a car engine capacity of 1030 cc car insurance rates would (start from/be) 225 L.E Annually
  • In the case of a car engine capacity is higher than 1030 to 1330 cc, car insurance rates would (start from/be) 350 L.E annually
  • In the case of a car engine capacity is higher than 1330 up to 1630 cc, car insurance rates would (start from/be)750 L.E annually.
  • In the case of a car engine capacity is higher than 1630 cc (maximum 2030 cc), car insurance rates would (start from/be) 800 – 3000 L.E annually, and the rate decreases every year since the year of production of the car by 10 percent.

Note that: The supplementary car insurance rates vary according to the type of the insurance policies like comprehensive insurance, liability coverage, third-party, fire, and theft, and collision coverage.

Why do car insurance rates vary from one car to another?

Certain cars are more expensive to insure than others or have higher car insurance rates than others, as carriers use accident and theft statistics to set rates for each model separately.

So if the car you choose is stolen more often or causes more accidents, you are likely to have high car insurance rates and pay more. For example, sports cars have high car insurance rates because their owners tend to drive them fast and crash hard.

Here are some specific car characteristics that affect car insurance rates:

  • Retail price. In general, the more expensive the car, the more expensive the insurance. If you purchase comprehensive and collision insurance, the insurance company can pay the market value of the vehicle in the event of theft or irreparable destruction of the car.
  • Cost of parts. High-end models often use parts made from carbon fiber and other specialty materials that are expensive to repair. This increases the cost of damage claims, so increases car insurance rates.
  • Safety. Over time, cars that protect drivers and their passengers due to high safety factors and technology in the car, lower car insurance rates. Fewer injuries mean fewer claims for health care payments and personal injury protection.

Factors that affect car insurance rates

Your car brand and model are not the only factors that affect car insurance rates. Others are:

  • Personal characteristics like age, gender and marital status. For example, teen drivers have higher car insurance rates on average than any other age group.
  • The coverage type. The more coverage you have, the higher your car insurance rates are likely to be.
  • Your driving record. A high at-fault accident can raise your car insurance rates.
  • Your car insurance history. This can include if your car insurance has expired, insurance claims, how long you were with your insurer, and your last insurance company.

7 Tips and Ideas for cutting car insurance rates

There are some strategies you can use to save more on car insurance rates and costs.

Once you know how much car insurance means to you, you can use some or all of these tactics:

  1. Increase Your Deductibles.
  2. Consider location when estimating car insurance rates.
  3. Get Discounts for Installing Anti-Theft Devices.
  4. Ditch Coverage You May Not Need 
  5. Take Advantage of Multi-Car Discounts
  6. Pay Attention on the Road and you may take a defensive driving course.
  7. Downsize Your Vehicle because insuring top-of-the-line cars can be more expensive than insuring a small (but safe) lower-cost commuter car.