Want to save money on your car, then check out these 9 simple tips on How to lower the cost of car insurance?
Due to a continuous increase in the price of vehicles, there is a rise in the prices of motor insurance. But there is no need to be worry as there are some ways or tips by which you can lower your car insurance.
Also check out: Tips for car repair and maintenance FAQs
9 Tips to reduce car insurance premium
Have you wondered how to reduce car insurance premiums? Here are some ways or tips to lower car insurance premiums.
Choose the best one with a lower premium:
When your policy has been about to renew you should obtain or collect quotes from different companies. And then compare and choose the best one with a lower premium.
While choosing a lower premium don’t forget to consider the creditworthiness of the insurer. Because it’s not all about money it’s also about services provided by insurers.
Don’t claim for small sums:
If you don’t file a claim then you are eligible for NCB(No Claim Bonus) for every claim-free year. So, avoid making claims for small issues like broken headlights. Because by making such small claims your will not eligible to NCB in your next renewal which increases your premium. You can repair your car through a local mechanic which may lower the cost of repair.
You can lower your premium by increasing your deductible while buying a policy. A deductible is an amount that you have to pay at the time of claim. By opting higher deductible, you can lower your premium. But make sure that this is a good option for one who make claim rarely. If you choose a higher deductible then make sure that you kept some amount aside to pay in case you make a claim. The higher the deductible you choose the lower premium you have to pay or vice versa.
Avoid adding unnecessary add on:
No doubt that choosing an important or necessary add-on while buying a policy is the most important step. Add on enhancing your policy and provide coverage beyond your normal policy. But adding unnecessary add-ons makes no sense other than to increase the premium.
Let’s understand with an example:
Suppose a person who lives where the level of rainfall is low adds engine protector add in his policy, then it doesn’t make any sense. Because engine protector provides coverage in case damage to the engine in case of non-accident like due to waterlogging in the engine.
Before you buy a Vehicle, compare cost:
People usually analyze many factors like average, performance, maintenance cost, etc. But one thing which they forgot to check insurance cost of that vehicle which they are going to buy. So, before you are going to purchase a new car you should check the insurance cost of the vehicle. Because the premium is based on some factors. Like make and model of vehicle, fuel type, RTO Code cost of its repair and overall safety record, etc.
The company blacklisted some vehicles due to their poor safety record or their high theft record. So, make sure you do not buy a car that is blacklisted.
Try to buy your all types of policies from one insurer:
Try to buy your all types of policies like term plan, health plan, motor insurance, etc. From one or common insurer because some companies give an additional discount to their existing insurer. Companies do so to retain their existing customers. Building a good relationship with customers is necessary or important in every field to grow.
Renew your motor policy before it expires:
If your motor policy expires then there are chances of a premium increase. And also, there is an inspection process mandate before policy issuance. Where there is a chance of a decline in getting insurance. So, make sure to renew your motor policy before it expires. Please note you can renew your motor policy before 45 days of the expiry of your current policy.
Apply for Discount for Anti-theft device:
Insurance companies offer some discounts for anti-theft devices. You can avail of a discount of 5% if you installed any anti-theft device in your car. As it lowers the risk of theft of a vehicle.
Pay as you go insurance:
If you think like you use your car often or do not use too much then you can go with “Pay as you go insurance”. This is a type where the company charges a premium on basis of your car usage. The company offers insurance cover on a kilometers basis. Its premium is usually lower as compared to regular plans. It is a newly launched plan. Many companies have started providing this.
So, these are the ways by which you can lower your cost. But reducing cost is not as tough if you take a smart decision and explore options. I hope this article helps you in lowering the cost of your car insurance.
Please let me know if you need any clarification regarding this article.
Was this helpful?
0 / 0