Car Insurance Tips
Car insurance is important to help protect you when you’re driving. Some people think car insurance is not necessary especially if you rarely have accidents. However, car insurance is very important especially when you’re behind the wheel. With the rising fuel prices maintaining a car is becoming more and more expensive. Here are some car insurance tips that will help you save money and get the best deal on your car insurance.
Before getting to these car insurance tips here are some of the factors that affect car insurance premiums.
Factors that Affect Car Insurance Premiums
Before getting into car insurance tips, it’s good to understand some of the factors that affect car insurance premiums;
1. Driving Record
This is a significant factor when it comes to determining the amount you’ll pay for your car insurance. If you’ve been in multiple accidents previously your premium is bound to go up. If you rarely have accidents then you can get a discount and a reduced premium.
2. Age of the Car
Older cars attract a higher premium than newer models. This is because they have higher repair costs and they have a higher probability of breaking down than newer cars. The older the car, the higher the premium.
3. Type of Car Insurance Coverage
There are various types of insurance cover. Comprehensive insurance provides a wider coverage as compared to the others. Comprehensive insurance is more expensive as compared to third-party insurance.
4. Make & Model
High-end cars will attract a higher premium than cheaper cars. This is because they’re much more expensive to maintain and the car parts are much more expensive.
5. Engine Capacity
The higher the engine capacity, the higher the premium. Cars with a higher engine capacity pose a greater level of risk.
6. Car Modifications
The more the car modifications the higher the insurance cost. This is because the cost of repairing a car with modifications is higher than one without.
Car Insurance Tips To Help You Save Money
Now that you know the factors that affect car insurance premiums, you can now figure out car insurance tips to help you save money. Here are some tips that will help you;
1. Third Party Insurance for Older Cars
If you have a much older car with a low value, get third-party insurance. Third-party insurance only covers third-party liabilities of the car owner. A comprehensive car premium can be more expensive than the actual cost of your car if it’s older. Reduce the overall premium of your car by going for third-party insurance.
2. Avoid Unnecessary Car Modifications
People like to modify their cars with performance modifications, aesthetic modifications, or functional modifications. These include additional superchargers, turbochargers, body kits, wheels, alloy upgrades and so much more. If you don’t want the premium on your car insurance to go up, go easy on the car modifications. Only upgrade your car when necessary.
3. Compare Car Insurance Premiums
Several motor insurance companies in India offer great car insurance plans. With all of them offering impressive coverage at competitive prices, it can be really difficult to choose the best car insurance among them all. To find the ideal insurance policy for your four-wheeler, you must compare car insurance offered by different motor insurers based on policy coverage, benefits, premium price as well as service offered. The comparison will help you find your ideal car insurance policy without spending a fortune. Therefore, you must compare car insurance to find the perfect policy for your car.
4. Install Anti-Theft Devices
The cost of your car insurance premium can be reduced when you install anti-theft devices in your car. Depending on the insurance company you’re using, they can recommend anti-theft devices that will help reduce the premium. There are multiple types of antitheft devices you can have installed like steering locks, cutouts, gear locks, and alarms among others. Once installed the car premium can go lower.
5. Avoid Unnecessary Add-Ons
When buying a car insurance premium make sure you read the fine print. Don’t get any unnecessary add ons to your policy. Add ons may increase the extent of coverage to your car for a much higher premium. Assess the risk that comes with your car and decide what type of protection you need. You don’t need all the excessive add ons that your insurance company offers. Assess your risk and decide on the necessary add ons to save on car insurance premiums.
6. Avoid Minor Claims
If you want to reduce your car insurance premium in the long run, avoid minor claims. The more claims you raise the higher your premium. If you get minor car damages that are not expensive to repair, you should do it yourself. Insurance companies offer a no-claim bonus annually that can help reduce your premium.
7. Pay annually
Paying for your car insurance monthly is more expensive than paying annually. If you’re finding it hard to pay once you can take out a 0% credit card and make the payment then repay your credit card bills on time to avoid getting charged extra. Paying annually can also get you a discount as opposed to paying monthly.
8. Avoid Policy Lapses
Don’t wait till your car insurance expires to renew it. Renew it before it expires and check with your insurance company if they can review your policy and reduce it. Some insurance companies are also known to charge a higher premium on lapsed policies.
9. Research Additional Discounts
Research if you can get any additional discount from your insurance company. Call and get quotes from other insurance companies as well and go for the cheapest one with the best possible value. There are multiple insurance companies that can give you an online quotation. Go for a reliable company as well.
10. Bundle Your Insurance
Getting all your insurance policies from the same company will probably give you a discount. Getting a quote for all the types of insurance you get from your company can reduce your overall insurance premium. If you have multiple cars, you can consider getting all cars covered by one insurance company.
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