Saving on Car Insurance: Expert Tips
Having car insurance is an essential part of owning a car. Not only is it important to have in case of an accident, but it is also required by law in India. Unfortunately, car insurance can be expensive and can put a strain on your budget. Fortunately, there are ways to get cheaper car insurance. In this article, we will discuss some tips to help you get the best possible rate on your car insurance.
Here is how to effectively get car insurance premiums low:
Raise the deductible.
Deductible can be defined as an amount that the insurance provider expects the insured to pay from the total claim amount. This deductible can either be voluntary or mandatory. The amount of mandatory deductible is set by the IRDAI. However, the voluntary amount of deductible is set by you. The more you choose, the less your insurance premium will be.
Avoid small claims.
Every policy year, when you do not file an insurance policy, you get a no-claim bonus. This bonus comes as a specific amount of discount on your annual premium. It ranges from 20% in the first year to 50% in the fifth consecutive year of no claim filing. Now, if you file minor claims, you lose this bonus, and it resets to 0%. So, avoiding small claims can be a good way to save money on premiums.
Install anti-theft devices.
Most car insurance providers offer premium discounts if the vehicle is equipped with anti-theft devices. This modern equipment helps to keep the insured vehicle safe from theft and robbery. This decreases the risk associated with that specific car and therefore, the insurance provider can comfortably reduce the insurance premium.
What most people don’t know is they can transfer their ongoing rate of no-claim bonus to their new cars. This is extremely beneficial as insurance premiums for new modern cars are different from their old worn-out counterparts. Keeping the continuous support of no-claim bonuses can help you pay insurance premiums more effectively.
Purchase car insurance online.
Comparing and purchasing car insurance online is highly recommended. It can be a convenient way to shop around for the best coverage and rates. Nowadays, most insurers offer a variety of policies and coverage levels to choose from. With the help of comparison websites, you can easily compare prices between different insurance companies and find the one that best suits your needs. Plus, online purchase is often much faster and easier than dealing with a traditional insurance agent.
Overall, while cost is an important factor to consider when selecting car insurance, it's equally important to focus on the coverage that meets your individual needs and provides adequate protection in case of unexpected events.