Everyone wants to save money and this is definitely true in case of insurance when people are looking for the best policies at the lowest premium. This is particularly true when people think of getting insurance for their cars. But low car insurance premium could also mean that your car does not get adequate coverage in which case the whole meaning of getting a car insurance is nullified. But this is not true in all the cases.
Here are a few expert tips which would help the readers to save money on car insurance without compromising on the coverage that they get for their cars and quality of the insurance process:
1. Considering the Costs of Car Insurance before Buying a Car
Generally, when people go to buy a car, they overlook the costs that have to be rendered to pay the car insurance premium. But in truth, this cost should also be included in the total cost of owning a car. Thus, it is always important to understand the cost of car insurance before buying a car as the insurance premiums differ according to the price, repairing costs and safety records of the cars. Thus, small cars like the Maruti cars would have a lower insurance premium than the sedan class cars.
2. Combining all the Insurance Policies with One Company
Most insurance companies provide discounts to their customers when they take insurance policies for a number of purposes. So, if a person buys a home insurance policy and a car insurance policy from the same company, he might be able to avail these discounts. Similarly, people who own multiple cars could insure all their cars in one policy and save a lot of money. But, while doing so, it is important that the users check with all the insurance companies to find the premiums and make sure if buying policies from same company would be beneficial or not.
There are a lot of parameters which influence the amount that is paid as car insurance premium. These parameters are capacity of the car engine, price and age of the car, and the location where the car insurance is being taken.
4. Comparing the Rates of Auto Insurance Companies
The rates of the auto insurance companies differ largely from one another and thus it is always a good idea to compare the rates which are being given by each company. It is advisable to get quotes and details from three different companies and comparing them is also a very good idea to make sure that the person gets the best car insurance at the lowest cost. Family and friends can also help in finding the best company for car insurance. Another easy way to find the best car insurance is through the various websites which compare the costs of insurance of the various companies and come up with the best insurance policy. It is very important, that the person chooses a good and professional car insurance company as in case of any accidents, he would need to contact them for help and quick follow up. Thus selecting a company which is committed to its cause is also very important.
5. Paying Higher Deductibles
Deductible is the amount paid by a client in case of an accident claim. So, if a client pays more deductible every month then chances are that he would be able to save more money in case of accidents. According to the experts, it is a good idea to set aside a part of the money that is saved on the car insurance to make sure that the person would be able to pay higher deductibles in case he needs to apply for an accidental claim.
6. IDV – Insured’s Declared Value
IDV of a car mean the make and the model of the car along with the year in which it was made. All the vehicles in India are insured with an IDV which is calculated by taking into account the ex-showroom price, along with the price of the electrical and non electrical fixtures in the car and after subtracting the depreciation for every year. So the more the number of fixtures and accessories in the car, more would be the car insurance premium.
7. Installing Anti Theft Devices
There are a few Anti Theft devices for cars which have been approved by Automobile Research Association India (ARAI). Insurance companies provide discount on premium costs for the cars which have these devices installed in their cars. This is a very good way to make sure that you save money on car insurance.
8. No Claims Discount or Bonus
In case a person has not filed for any claims on the annual insurance policy of the car, then that person is eligible to discount for not having claimed anything during the year. This discount is given to the customer in form of a percentage which is reduced from the premium of the insurance for the coming year. The best thing about this discount is that the percentage keeps increasing with every year which is free of any claims. This percentage starts from 20% and can go up to a maximum of 50%. Thus people who drive safely and take care of their vehicles properly can avail this discount and save quite a lot of money on car insurance.
9. Correct Information
Insurance companies provide a discount on the premium rate of about 10-30% to the people who provide them with all the authentic and correct information about the car. This information includes Name of the Car, model of the car, year in which the car was made, price at which it was bought, distance it has travelled, whether it has been involved in any accidents, what all repairs has the car undergone etc.
10. Automobile Association Membership
In India, there are a number of Automobile Associations. Like there is the Automobile Association of Southern India in the south, the Western India Automobile Associations etc. All these associations have been registered with the government and provide workshops and training on safety rules on the road and advanced driving to the people who have enrolled in these associations and are a member. So any person, who is a member of any of these associations, is eligible to get a discount on their car insurance from the insurance companies.
With these tips in mind, it would be extremely helpful for people to make sure that they save money on their car insurance.