Many times, we hear from our friends, colleagues or cousins about something they purchased and got a smashing good deal. We immediately compare it to our buy and if we have paid a higher price for the same product or service we get disappointed and curse ourselves for not securing the same deal. This article will help you boast about how you saved on your car insurance premium in your next meeting with them.
Here are some of the points you need to consider before you renew your car insurance.
Tips to Reduce Car Insurance Premium Photo Gallery
Compare car insurance online
Take advantage of comparison websites and compare the policies offered by different insurers. When you shop around you will know if other companies are offering a better deal to your existing car insurance policy.
Raise your deductible
Your car insurance premium can be reduced if you increase your voluntary deductible component which is your contribution in a claim. Higher the voluntary deductible, lower is the car insurance premium and vice versa. However, increase it to a reasonable amount otherwise the whole point of getting an insurance gets defeated.
Don’t pimp your ride
Everyone wants their car to look unique. Some take this obsession to another level and add spoilers, fancy wheels and souped-up engine parts. This addition can cost you increased premiums.
Don’t make small claims to secure no claim bonus
You will be entitled to No claim bonus (NCB) if you don’t make a claim in a year. This bonus will accumulate every year so unless it is necessary try avoiding putting claims for small issues like a broken tail light. Sometimes it is better and cheaper to get small issues solved by a local mechanic.
Transfer your Bonus
It is the person and not the car to which car insurance is linked. You can transfer the accumulated bonus when getting an insurance policy for the new car. So, if you do sell your car and get a new one, remember to retain the insurance in your name.
Don’t get carried away with coverage
Getting insurance is good but getting obsessed with unnecessary add-ons is not. Select the add on that will add value or come in use to you depending upon your requirements and the area you reside in. Add on as you are aware of comes with a cost and will increase your car insurance premium. If you have an older car, compare the value of the car to the cost of optional collision or comprehensive coverage and decide if it’s worth it.
Ensuring timely renewal will help you maintain your NO Claim Bonus. Also, it is easy and convenient to get your policy renewed in time. If you renew your car insurance after your policy lapses you might lose your No Claim Bonus and also will need to get your car inspected. Also, renewal on a lapsed policy costs higher premium than if done in an active one.
Install Anti-theft devices
It is beneficial to install safety features in your car. By purchasing gear lock, steering lock or an anti-theft alarm device, you can reduce your yearly premium. Thus, installing an anti-theft device approved by Automobile Research Association of India (ARAI), Pune will earn you a premium discount.
Today, almost all car insurance providers have an online presence, hence buying car insurance policy through the internet has become a much simpler task. You can compare the best of policies and not just rely on the agent who will insist you to buy a policy from their company for his own sales targets and bonus. As there is less operational cost, purchasing car insurance policy online works out cheaper to buying policy offline.
So, if your car insurance premiums are giving you a fright then apply the above tips when getting a car insurance next time and save your moolah.