8 Tips to Lower Your Car Insurance Premium
After spending a fortune, you finally buy a car for yourself and your family. With a car comes its maintenance and insurance cost. For every car owner and driver, it is mandatory to have car insurance in India. When it comes down to paying your car insurance premium, there are 8 important tips that can help in maintaining your budget and getting all the possible savings-
1. Compare Car Insurance Quotes
The car insurance premium may vary based on the car value, depreciation value, and geographical conditions etc. Similarly, compare at least 3-4 car insurance quotes from different insurance companies. Compare the policy features, premium amount and add-on covers, and pick the most appropriate one.
2. Credit Score
You can actually lower your car insurance premium if you are able to maintain a good credit score. To maintain a good credit score, you would need to maintain your credit standing, pay the bills on time, have a low credit balance and take only as much credit as you would need.
To keep up accuracy in your credit records, make sure that you keep a timely check on your records and rectify errors regularly if any.
3. Low Annual Mileage
If you do not drive your car for more than 1 or 2 hours daily then you will be charged a lower premium cost. If your car is being driven for longer distances, it will have more annual mileage and thus more the premium.
4. Opt for Higher Voluntary Deductibles
Another way of reducing your car insurance premium is to ask for higher deductibles at the time of purchasing the policy. It is the amount that you need to pay from your own pocket at the time of claim.
It is one of the simplest ways to reduce your car insurance premium. The cost of premium can be reduced by 30 percent with voluntary deductibles.
However, opt for deductibles as per your financial capabilities. Going overboard can put a financial strain on your pocket. At the time of policy renewal, there is also an option to change the number of deductibles.
5. Install anti-theft devices in your car
Anti-theft devices reduce the possibility of your car being stolen. If you install any device that reduces the risk of theft or damage, it will reduce the possibility of you making a claim. And any step that you take towards protecting your car like airbags, antilock brakes, and immobilizers, could convert into a good discount i.e. a smaller premium.
The more, the years without claiming your bonus, higher will be the No-claim-bonus; of course with an upper limit to it.
If you are planning to buy a new car and sell your old one, then you can also transfer your No-claim-bonus from the previous policy. You need to give the NCB certificate to the new insurer to transfer your NCB.
7. Don’t claim insurance for small repairs
For all the years that you have not made any claims, you become eligible for a no-claims-discount or bonus. You will be surprised to know that it can reduce your car insurance premium by 50 percent?
Those who make claims for small damage end up losing their No-claim-bonus.
The thumb rule to keep your premium low is to pay from your own pocket for small repairs. Make sure that the cost of these small repairs does not exceed the savings you get from your No-claim-discount!
8. Loyal Customer
Last but not the least, who would not appreciate loyal customers? And insurance companies are no exception! If you have been buying car insurance from the same provider every year then you might end up earning some discount.
The Bottom Line
With growing demand and sale of automobiles in India, the prices of car insurance premium will always be on a boom. To reduce the sting, you can simply take into consideration the above-mentioned tips, which will help you take the right decision.