Having car insurance is a mandatory rule set by the Indian government. Although some people may think of car insurance premiums as an unnecessary financial burden, it is greatly beneficial due to the damaged roads and increasing accidents. However, if you work smartly and plan ahead, you can save a lot of money on your car insurance policy without affecting the quality of your insurance.
Here are some sure-shot ways to save money while using and renewing your car insurance policy:
1. Plan ahead.
If you want to buy new car insurance, you may need a good 3-4 weeks to check different policies and compare their benefits & premium prices to pick the most cost-effective options. If you have to renew your car insurance, be sure not to wait until the last minute. Experts say buying or renewing insurance 20-25 days in advance is much cheaper than doing it just a couple of days before, as it gives you time to assess & finding the right one if you want to switch.
2. Avoid car modifications.
Check with your insurance if it covers the cost of modifications. Getting modifications on your car can cause the premiums to keep increasing to cover the extra features. Modified cars are also more susceptible to theft.
3. Get only necessary add-ons.
Instead of buying unnecessary add-ons that you may not even need, keep that amount with you for an emergency fund. Unnecessary add-ons increase the premium and can become overwhelming over time.
4. Be a safe driver.
Driving safely can get you added discounts on your premium. Get the type of insurance or reach out to the companies which can reward you for safe driving.
5. Choose multi-vehicle car insurance.
If you have two or more vehicles in your home, buying multi-vehicle car insurance can get you huge benefits under relatively smaller premiums.
6. Choose the people added to your policy wisely.
Young drivers are considered high-risk candidates and add more to the premium. Adding older drivers to your car insurance policy can get you reduced costs. However, avoid the illegal practice of “fronting,” wherein an older person falsely claims to be the main driver.
7. Read the policy carefully.
Read the policy minutely and use the discounts mentioned wherever possible.
8. Use alternate transportation and reduce overall mileage.
If possible, use alternate or public transportation whenever possible. This will reduce mileage, lower your insurance premium amount, and even save petrol and maintenance costs.
9. Choose your car wisely.
Smaller vehicles call for less amount on premiums. Always check which group your vehicle falls into in terms of car insurance premiums. Sports cars are the most expensive, while hatchbacks are usually the cheapest, and a similar trend is with premiums of their insurance.
Car insurance is mandatory and beneficial. However, it may cost you good money for premiums.
A little bit of research and proper planning is always a good idea whenever it comes to buying or renewing car insurance.
Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.