Save Money- We can reduce car insurance premium if we keep some things in mind while taking or renewing the policy.
Save Money on Car Insurance– There are many types of expenses every year on owning a car or any other vehicle. These expenses also include the expense of vehicle insurance premium. If you have an expensive car, you will have to spend a lot on paying the insurance premiums. Insurance is now mandatory.
If there is insurance, the insurance company compensates for the damage caused to the vehicle due to an accident etc. In case of injury or death of someone due to vehicle, the insurance company also gives insurance claim to that person or his dependents. There are also some tips to reduce insurance premium (Tips to Save Money on Car Insurance). If you use them, you can save a lot of money.
While buying or renewing a car insurance policy, you need to take some precautions to save money. This work is not to be done carelessly. By choosing the wrong policy, you have to pay more premium and get less facilities. Besides, the caution taken while taking insurance claim can also affect the premium. Come, let us know which tricks we can try to save money while buying or renewing an insurance policy.
Do a lot of research:
Car insurance will put less burden on your pocket only if you do thorough research before taking the insurance policy. You can do this sitting at home. Nowadays, there are many platforms on the internet which provide comparative study of insurance policies of different companies. This is helpful in choosing the cheapest plan as per your needs. You can also take insurance policy online (car insurance online).
Understand the coverage: Funda
car insurance has two parts. Third party damage and self damage. It is mandatory to take third party cover. Self insurance cover is voluntary. Self cover includes various types of losses caused to the vehicle and driver due to accident, loss due to fire and waterlogging etc.
Meaning, in the above circumstances, if there is any loss to the car and the car owner, the insurance company will compensate for it. Self insurance cover should be chosen carefully. There are many add ons in it. The more add-ons, the higher the premium. Don’t buy add-ons that you don’t need. This will reduce the premium.
Pay as you drive
usage-based or telematics car insurance is a new concept in the domestic market. But it is gradually becoming popular. Traditionally motor insurance is determined by the make and model of the car and not the driving patterns of the customer. In contrast, the “pay as you drive” model emphasizes the driving behavior of the car and its usage, i.e. based on the distance traveled by the car.
Calculating the premium based on the distance traveled by the vehicle helps in reducing the premium cost and you pay much less than the normal premium. If you drive the car less then it is better, ‘Pay as you Drive” model is best for you.
Avoid taking small claims.
When no insurance claim is made in a year, the insurance company gives ‘No Claim Bonus’ (NCB). This gives a discount of 20 to 50 percent in the insurance policy premium for the next year. If you have availed NCB for many years and are thinking of buying a new car, then NCB can be transferred. Therefore, no claim should be taken for damage to the vehicle.
