Trim Down the Cost of Car Insurance
There is a lot of talk about cheap car insurance. Budget conscious as we all are, we are tempted by it. There are ways you can reduce car insurance premiums substantially.
Have you ever thought that you could have got a better deal in terms of Premium and the cover provided? Think about it. You might be paying a lot more than you need to or you might get a better vehicle insurance cover. Check and compare with what you have and what could be better. Trim Down the Cost of Car Insurance.
- Type of Insurance: Premium varies with the level of insurance you choose for the car. Liability only Policy is mandatory as well as the cheapest. It is fixed for a particular vehicle. Comprehensive vehicle insurance policies are expensive but the cover includes liability as well as damage to own car.
- Get Quotes and Compare Prices: Getting quotes from various companies was a tedious task. With online insurance comparison channels, it has become much easier to get quotes, compare prices and have policy features at a glance. You will find that the rates offered by different companies for the same car are different.
Reasons for price difference can be many. Check if the difference is due to some added features and if those additional features are important to you. The difference may also be due to the discounts offered by different car insurance companies to specific car brands.
- Avail the No Claim Bonus: If you are a safe driver and have not made a claim on your vehicle in the past policy year(s), you are entitled to premium discounts called the no claim bonus. It can be from 20% to 50% of the own damage part of the premium depending upon the number of claim free years.
If you are planning to change your insurance company, you can transfer your no claim Bonus to it. You can even transfer the No claim bonus accumulated over your old car to your new car when you sell the old car.
- Voluntary Deductible: Voluntary Deductible is the repair cost that the policy holder decides to pay in case a claim arises. Insurance policy settles the claim after deducting this amount. Opting for voluntary deductible reduces the premium. There is a compulsory deductible amount you will have to bear in any case. Opt for the voluntary deductible amount that you can comfortably bear.
- Choose the Add-on Covers Wisely: There are a lot of add-on covers available in with the car insurance companies. Although all of them are very beneficial, they add to the cost. Also see which accessories you want to get covered. Including accessories in the cover will increase the premium.
For a new car you may want to buy a full featured insurance but needs change over the time and you may want to discontinue some of them. So, it is better to spare a thought to which added features you actually require.
- Other Discounts: you are entitled to discounts if you have installed anti-theft devise approved by ARAI or you are a member of a recognized automobile association.
Once you take care of these things, you will either be able to get cheap car insurance or get a better deal for the same amount.