Tips to lower car insurance premiums include comparing rates from different insurers, increasing deductible amount, securing car with anti-theft devic
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Tips to lower car insurance premiums include comparing rates from different insurers, increasing deductible amount, securing car with anti-theft devices, transferring NCB to new policy, renewing insurance policy on time, boosting credit score, and avoiding minor damage claims.
No one wants to pay too much for petrol, rent, and other utility services. The same appliesto auto insurance. You can not only look for discounts but can also look for methods to get your vehicle insurance premiums down.
Reducing your insurance premium by merely 5 per cent to 10 per cent will increase your disposable income, as the average good driver in India pays an average of ₹10,000 a year for coverage. There are instances when you can save up to 30 per cent on your auto insurance. So, let’s explore the tips that will help you lower your car insurance premiums.
Ways to Reduce Your Car Insurance Premium
- Compare The Available Policy Options
Comparing the offerings of several insurers is essential when looking for the best auto insurance. When selecting a provider, take the time to compare the rates offered by different providers. Online resources can be helpful for this since they provide pricing and benefit comparisons, enabling you to discoverthe ideal coverage.
2.Increase the Deductible Amount
Reduce your auto insurance rate by increasing your deductible. Simply put, a deductible is the amount you would have to pay out of pocket for certain repairs or claims before your insurance covers the remaining costs. You might start with a small deductible and raise it over time.
But remember that you should only raise your deductible proportionately to your financial situation.
3.Secure Your Car with Anti-theft Devices
As everyone knows, there is a significant rate of theft in India. Installing an anti-theft system in your automobile would be wise, especially with the number of incidents rising daily.
These gadgets help thwart burglaries and provide complete safety. Installing them can even lower the annual insurance rate by roughly 5–8 per cent.
4.Transfer NCB To New Policy
If you’re considering selling your old automobile for a new one, remember that the new car will require insurance. It could be a good idea to move to a new insurance company. Here’s how to lower the new policy’s premium: move over your old policy’s No Claim Bonus (NCB) to the new one. You can save money by maintaining the discount on your premiums for the new policy through NCB.
5.Be Vigilant with Renewing Your Insurance Policy on Time
You risk losing money if you neglect to renew your insurance on time. You might need to reapply for insurance if you neglect to renew your coverage. Plus, there might be other expenses involved that you would rather not incur. Furthermore, it might quickly result in the loss of all accrued bonuses. Ensure you renew your policy on time to avoid paying extra costs. To learn more about car insurance, click here.
6.Boost Your Credit if Possible
When calculating insurance premiums, most insurers also consider credit-based insurance scores. This number indicates the likelihood that you will claim your auto insurance.
The likelihood of submitting an expensive claim increases with a decrease in your credit-based score. Increasing your traditional credit score may also improve your credit-based insurance score, leading to lower rates for auto insurance.
7.Avoid Minor Damage Claims
It won’t cost much to fix minor dents or scratches on your car’s headlight caused by another motorist colliding with it. Filinga claim for these little damages might not be the most fabulous idea. Why?
When renewing your policy, you can forfeit your opportunity to receive a No Claim Bonus if you file a claim for these small problems. To save money over time, it is advisable to refrain from submitting claims for minor damages like dents and cracks.
Conclusion
To maximise the benefits of your auto insurance, you must act proactively and make wise choices. You can reduce premiums without sacrificing coverage by evaluating policy options, selecting deductibles carefully, avoiding small claims, moving NCB to new policies, installing anti-theft devices, and more. Using these tactics, you will drive with assurance knowing that your car and funds are protected against unforeseen setbacks.
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First Published Date: 21 Jun 2024, 19:48 PM IST
