Car insurance is a necessary expense for all car owners in Norway, but that does not mean that you need to pay more than necessary. With a little insight into how insurance companies calculate their premiums, and some simple steps to optimize your insurance, you can save significant amounts on your car insurance. This guide shows you how to get cheaper car insurance without compromising on the coverage you need.
1. What is car insurance and why do you need it?
Car insurance is compulsory insurance in Norway, and all registered vehicles are required to have at least liability insurance. The insurance covers damage that you as a driver cause to other people, vehicles or property. Without liability insurance, you will not be able to register your car, and you may risk large financial losses if you are involved in an accident.
In addition to the compulsory liability insurance, you can also choose between partial comprehensive insurance and full comprehensive insurance to get additional cover for damage to your own car, unforeseen events and theft. The right car insurance for you depends on the car’s value, mileage and how you use the car on a daily basis.
2. Different types of car insurance
Before you start looking at how to get cheaper car insurance, it’s important to understand the different types of insurance available:
a) Liability insurance
Liability insurance is required by law and covers damage to persons, vehicles and property that you cause in an accident. However, it does not cover damage to your own car. This is the cheapest type of insurance and is usually recommended for older cars with a low value, where the cost of repairing the car may exceed the value of the car.
b) Delkasko
Partial insurance provides extended coverage compared to liability insurance. In addition to liability cover, partial comprehensive insurance provides cover for damage resulting from fire, theft, vandalism and glass damage. It also covers roadside assistance if your car is exposed to an incident such as theft. This is a popular choice for car owners with middle-aged cars that still have some value, but where full insurance can be too expensive.
c) Full helmet
Full comprehensive insurance provides the most comprehensive cover and also covers damage to your own car, even when you are at fault in the accident. It includes all the coverage from liability insurance and partial comprehensive insurance, as well as coverage for collision damage and run-off. Full comprehensive is usually recommended for newer, high value cars as the cost of repairs can be significant. This is the most expensive insurance, but it also provides the most security.
3. What affects the price of car insurance?
When insurance companies calculate your car insurance premium, they take into account a number of factors. Understanding these factors can help you make the right choices to reduce costs.
a) Age and experience as a driver
Younger drivers and those with less driving experience are often considered a greater risk by insurance companies. As a result, they will have to pay higher premiums. This is due to statistics which show that younger and inexperienced drivers are more often involved in accidents. If you are an experienced driver with an accident-free record, you will benefit from lower insurance rates.
b) Car type and value
The car’s make, model, age and value play a big role in pricing. Expensive high-performance or luxury cars are more expensive to insure because they cost more to repair or replace. An older car with a low market value, on the other hand, can often be insured for a lower premium, especially if you choose partial comprehensive insurance or liability-only insurance.
c) Annual mileage
The more you drive, the more likely you are to be involved in an accident. Therefore, the insurance price will increase with the mileage. If you can document that you have a low annual mileage, this can significantly reduce your insurance costs.
d) Residence and parking
Where you live can affect your insurance costs. If you live in a big city, where there is a higher risk of theft and accidents, you will usually pay more in insurance than if you live in the countryside. Parking also plays a role – if the car is left in a garage overnight, it will reduce the risk of damage and theft, which in turn can lead to lower premiums.
e) Bonus scheme
Many insurance companies offer a bonus scheme that gives you discounts the longer you drive without being involved in accidents. Usually, you start with a 20% bonus when you take out insurance, and it can increase by 10% for every year you drive accident-free, up to 75%. If you have earned a high bonus, you can get significant discounts on your insurance. Conversely, an injury will cause you a bonus loss, which increases insurance costs.
4. How to get cheaper car insurance
There are several strategies you can use to reduce the price of your car insurance. Here are some tips to help you find the best price on the market.
a) Compare insurance offers
The most important thing you can do to find cheaper car insurance is to compare offers from several insurance companies. Insurance premiums can vary significantly between different providers, and there is no guarantee that the company you already use will give you the best price. Use comparison services such as Finanportalen or Tjenestorget to get an overview of the market. By collecting offers from several companies, you can choose the most cost-effective option.
b) Increase the deductible
The excess is the amount you have to pay yourself if you are involved in an accident or damage your car. By increasing the deductible, you take on a greater part of the risk, which means that the insurance company can offer you a lower premium. If you feel comfortable paying a larger sum even in the event of an accident, this can be an effective way to reduce your insurance costs.
c) Reduce the mileage
If you have a car that is mainly used for short trips or at weekends, it may be worthwhile to reduce the annual mileage in the insurance contract. Many insurance companies offer a discount to car owners with low annual mileage. Be sure to be realistic about how much you drive, as the insurance company may require documentation in the event of an injury.
d) Accumulate bonus
As mentioned earlier, your bonus can play a big role in reducing your insurance costs. The most important thing you can do to keep or increase your bonus is to avoid accidents and injuries. Also consider whether you can transfer the bonus if you change insurance company. Many companies allow you to take your bonus with you when you change insurance provider, as long as you can document damage-free driving.
e) Choose the right type of insurance for your car
Don’t pay for coverage you don’t need. If your car is older and has a low market value, you can consider downgrading to parts insurance or liability-only insurance. For a car that is worth less than the cost of full comprehensive insurance, it can often be more economical to cover any repairs yourself, rather than paying for full comprehensive insurance.
5. Consider additional coverage carefully
When you take out car insurance, insurance companies will often offer a number of additional covers, such as rental car in case of damage, roadside assistance and cover for luggage in the car. Although these can be useful, it is important to consider whether you really need them. By opting out of unnecessary additional coverage, you can cut down on insurance costs.
a) Roadside assistance
Many car owners already have access to roadside assistance through car clubs such as NAF or through the car’s warranty period. If you already have roadside assistance through another agreement, you may not need to pay extra for this through your insurance.
b) Rental car cover
Car rental in case of damage can be convenient, but if you have access to another car or can manage without a car for a short period, it may not be necessary to pay for this cover. This is particularly relevant for car owners who do not use the car daily or have access to public transport.
6. Change insurance company if necessary
Being loyal to one insurance company over time can sometimes result in you paying more than new customers, as some companies offer better terms to new customers to attract business. It may pay to check prices with other insurance companies annually and consider switching if you find a better offer. Remember that you can change your insurance company at any time, even if you have an active insurance contract. You only need to notify your current insurance company.
7. Summary: How to get cheaper car insurance
Car insurance is a necessary but often expensive expense. By spending some time understanding how insurance companies calculate premiums and comparing offers from several players, you can save significant sums each year. Increase the deductible, reduce the mileage, earn a bonus, and carefully consider the insurance coverage to adapt the insurance to your needs.
To get cheaper car insurance you should:
- Compare several offers from different insurance companies via services such as Finansportalen and Tjenestorget .
- Consider increasing the deductible to reduce the monthly premium.
- Reduce the mileage if you drive little, to get lower insurance costs.
- Accumulate and protect the bonus for damage-free driving, so that you get further discounts over time.
With these tips, you can secure good and affordable car insurance that suits your needs, while saving money.