How to Reduce Car Insurance Premium
Owning a vehicle is a symbol of status for many and for some it is just a matter of commuting convenience. Whatever be the reason, nowadays every individual vies to have a car. Present IT scenario is very promising for youngsters who convert their hefty pay packet in some swanky wheels and zoom by on the road. Whether it is a fully owned car or the one bought through a car loan, it is vital to care of the car and protect it from damage and theft.
Cars and speed go hand in hand. Thus, we see many cases of car accidents and major damages to the cars. This results in heavy expenditure when the car is given for repairs. Thus, it is advisable and mandatory to have a car insurance that covers the expenses incurred due to damage in an accident. Another reason why you need to have car insurance is to protect the vehicle from theft, as insufficient parking space prompts many people to park the car on the road, which tempts some miscreants to drive it away. Fancy car models mean a higher premium rate, so how to reduce car insurance premium is a thought to mull over.
THINK AND PLAN:
There are various ways in which you can reduce car insurance premium. To begin the search for a good insurance plan online. Compare different companies and their offers and select the best and cheap premium plan. It is not only essential to get a cheaper plan but to understand fine print regarding the inclusions and exclusions of the policy, any hidden costs associated with the plan, etc.
MONEY SAVED IS MONEY EARNED:
Try to save cash on paying the higher premium by taking simple steps to safeguard your vehicle. Installing safety air bags, anti-theft lock, antilock braking system, etc. helps in preventing the car from major damages in extreme cases. The passengers are safe too due to seat belts and airbags.
When you have adequate safety devices installed in the car, you can rest assured that in a case of an accident, your car will not suffer major damage nor will it get stolen from the road. The insurance company can then be requested to cut down the premium as major hazards have been taken care of already.
Spending some more in the initial stages itself when you buy a car and getting these fitments done will save a lot on higher premium in the long run.
KNOW YOUR RIGHTS:
When you pay the premium annually but make no claim in the year, then you are entitled to NCB or No Claim Bonus. Make sure that at the end of the year you remind the insurer of this and get the amount deducted from the next year’s premium. Another thing to know is irrespective of the continuation of the same provider or a new insurer for the next year, the bonus claim remains valid and applicable in both the cases. So technically, even if you change the insurer and if you have NO CLAIM from the previous year, the new insurer too should give you a discount on premium.
USE YOUR CLAIM RIGHTS SENSIBLY:
Just because you have car insurance that does not mean that you should make claims in simpler circumstances. If at all your car meets with an accident and the fault is minor, which you can easily bear from your pocket, then use self-funds for repairs instead of claiming the amount from the company. Unless and until the damage is major and the amount counterbalances your NCB for the next year, only then it is advisable to apply for an insurance claim.
On a final note, buying a car is easy. But maintaining it is like keeping a white elephant. Only proper care and attention can help you save a lot on your car insurance premium. Survey, compare and then buy the best deal to reduce car insurance premium so that you can enjoy your prized possession with peace of mind.
Insurancebash isn’t affiliated with any insurance company. We are simply sharing our opinions and review about the said products. We don’t take any responsibility if you buy these insurance policies.