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Insurances are very important to optimize your budget. There can be very expensive. And there could be some large differences in prices between one provider to others. And most often than not they are providing exactly the same coverage.
It is very important to regularly check if there are better deals on your insurance. Even though it could be the cheapest at some point, it may not be the case a few years later. You just need to make sure your contract allows you to change contract from time to time.
Recently, I decided to check all my recurring expenses and see if I could save something on at least some of them. Turns out I can! I was able to change my car insurance to save over 350 CHF per year on it.
Changing car insurance
This year, I have checked again the car insurances for my car. Until now, I was with AXA Winterthur. When I got this offer almost 5 years ago, it was the cheapest offer. Unfortunately, it is not the case anymore and I did not think to check again before this year.
I have now changed my car insurance to Helvetia. Before I was paying 668.95 CHF each semester, now I will pay only 492.20 per semester, this is 353 CHF savings per year. Once I have got a better salary, I will also stop paying per semester to save 30 CHF each, but for now, it is a bit too much to pay at once.
For now, my car still has only a few kilometers (less than forty thousand), so I am still keeping my complete Casco insurance. Next year, I will reconsider this. I may also consider increasing my deductible to reduce the fee.
This time, I used an insurance advisor (free!) to check the fees for me. But it seems that even if this is better, this is still not the cheapest possible. Next time, I will do the check first online to make sure I am not getting ripped off. Now, I cannot change my insurance for a few years. But I can still change the details such as deductible and reduce the coverage I do not need.
I should have checked this expense earlier. I was believing it was still the cheapest provider for my car. I think that recurring expenses should really be checked more often. For now, I will check my recurring expenses at least once a year.
Do not forget to check if you can save some money by changing insurance. In Switzerland, the prices are moving often. Thus, it is often a good idea to change, even if it is a bit a pain in the ass to change.
Also, do not forget that even if you need complete insurance when your car is new, you may not need it forever. It is important to reconsider the coverage you need regularly.
I am quite happy about this, this is about 30 CHF per month saved next year! I will try to check that my insurances are the cheapest as soon as I can change them. There is no point paying more for exactly the same service.
You should always pay special attention to recurring expenses. They can be a burden for your budget even though they seem small. A small recurring fee can account for a large expense each year. I would recommend checking all your recurring expenses at least once a year, ideally more.
To learn more about cars and personal finance, read why cars are not a bad thing!
What about you? Do you have any saving tip? How did you manage to save on your car insurance?