Tips to Lower Car Insurance Costs
For car owners, the most important thing they need is car insurance. Car insurance will protect you financially when you are driving. When buying car insurance online, you want the best deal possible. However, with the rising costs of automobiles, car insurance premiums have also increased.
Not everyone can afford the high premiums provided by insurance providers. So, here are a few tips you can use to lower your car insurance costs.
1. You can choose a higher deductible for your car insurance.
The higher the deductible amount, the lower the car insurance premium. The deductible is the amount you pay out of pocket before you make an insurance claim. When you choose a policy with a higher deductible, your premium is lower, and vice versa.
There are two types of deductibles for car insurance. One is a compulsory deductible imposed by the insurance provider. It will not affect the premium you pay on your car insurance policy.
The second is a voluntary deductible you choose to pay if you make a claim. You can choose the voluntary deductible according to your requirements. It will have a clear impact on the premium that you pay. Ideally, the amount you select as a deductible should be less than the ‘no-claim bonus’ (NCB) given to you by the insurance provider in the next year.
2. You should avoid claiming small expenses.
As a car insurance policyholder, you are entitled to NCB every year you do not make a claim. When you renew your policy next year, this amount will be deducted from your premium, reducing your premium cost.
If you want to take advantage of this facility, ensure you do not make claims for small expenses, such as a broken taillight or a headlamp. These will usually be less than the NCB you will be entitled to. Therefore, they will reduce your NCB; thus, you cannot reduce your car insurance premium in the next year.
3. You can get your NCB transferred to your new car.
Your car insurance policy is linked to you, not your car. Hence, you can easily transfer the NCB you have accumulated to the new car you purchase. To do this, make sure to retain your car insurance even after you sell your old car.
Request an NCB certificate from your insurance provider when you switch cars. The certificate will allow you to reduce the premium on the new insurance policy.
4. You need to install anti-theft devices in your car.
You can install various anti-theft devices (ATDs), such as anti-theft alarms, gear locks, and steering locks, in your car. These devices protect your car from theft and burglary. This added security is seen as a benefit by many insurance providers. Therefore, many insurance providers may give you a discount on your car insurance premium if you install an ARAI-certified ATD in your car. Make sure the expense of installing such a device is worth it.
5. You can purchase your car insurance online.
You can find several portals where you can compare different car insurance premium quotes, all within a few seconds. Most such websites will give you much better deals than those you find offline.
The formalities and documentation for purchasing car insurance online are simple. The portals guide you through the entire process of document uploading and verification. The entire procedure will be completed in a matter of minutes, efficiently and safely.
6. You should shop around for better rates.
Unlike life insurance, you do not have to renew your car insurance policy with the same provider every year. If the annual premium rate has increased in the past year, you can shop around and obtain quotes from other car insurance providers before renewing your policy. You might get a lower rate with another provider.
Remember: The lowest-priced company need not necessarily be the best car insurance provider. Verify the creditworthiness of the insurance provider before applying. You can do this by identifying the financial strength of that insurance provider and going through user reviews and ratings.
7. You can decrease the size of your vehicle.
Insuring a bigger car will always be more expensive than insuring a small car. If you are looking for some discounts, you can consider purchasing a smaller vehicle. Larger vehicles have bigger engines and a higher market value. Insurance providers often provide car insurance based on engine size and market value. So, before purchasing an SUV, make sure you can afford the annual insurance premium of your new car insurance policy.
8. You can change your coverage.
It is mandatory in India for every car owner to buy a third-party insurance policy. However, if you have an old car, you might want to skip the collision or comprehensive coverage. Your insurance company will probably total your car if it were to be involved in an accident because it is cheaper.
You will also find other coverage options, such as car rental coverage and roadside assistance. You can skip these options and lower your car insurance premium. However, it is recommended that you understand which options you are removing beforehand. Go through every point mentioned in your car insurance policy before signing the contract.
Conclusion
If you love driving your car, there is no way you can say no to car insurance. However, insurance premiums have increased. This article highlights some ways you can lower your premium. Make sure you shop around for the best rates and discounts before finalizing the right policy. Do not forget to read through the terms and conditions of your car insurance policy.
If you need a personal loan to purchase your car insurance online, Piramal Finance is a good place to start.