What Are The Steps To Reduce Car Insurance Costs?

By Author: Abhilash Chalmela
Total Articles: 1
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Buying a vehicle has become a necessity in this modern world. With the same, you can travel around, without depending on public transportation. When you buy a car, you also need to buy Car Insurance so that your legal and financial liabilities get covered during incidents like Road Accidents, Vehicle Loss, Damage, etc.
But premiums are typically high, and so it is natural to want to reduce the cost. So, here are some tips on lowering the Car Policy premiums:
Compare the costs
If you are buying your first car, compare the premiums before buying one. This is because insurance premiums depend on your car’s market value, the money spent on repairs, and the likelihood of it being stolen. Most companies offer discounts for features that reduce the risk of theft (for instance, installing anti-theft devices) or even injuries (airbag installation).
Moreover, you can get a lower premium quote if the four-wheeler is categorised as a safe one. A simple google search will help you understand ...
... the safety ranking of the car you intend to purchase.
Renew regularly
Renewing policy timely is the best tip for reducing costs. Ensure you renew before it lapses. Timely renewals help you accrue the No Claim Bonus, a discount on premiums, for not filing any claims each year. All insurance companies offer a minimum discount of 10% on insurance premiums for one claim-free year and a maximum discount of 50% on five consecutive claim-free years.
Stick to one insurer
The other way to reduce premiums is to buy all policies from the same insurance company. If you have multiple vehicles and buy Four Wheeler Insurance from the same insurer, you get heavy discounts on the premiums for bringing your business to the same insurance company. This discount exceeds the sure-shot NCB discount you get for each claim-free year.
Raise deductibles
For saving money on the insurance, choose a higher deductible. Raising your insurance deductible lowers the cost of premium significantly. If you consider yourself a safe driver, who has not filed for insurance claims over the years, consider this option. That said, ensure you have enough savings set aside if you file a claim and need to pay high deductibles.
Avoid small claims
Most people think that they can file claims anytime only because they have an insurance policy. They are under the misconception that filing a claim saves them funds. However, it is essential to judiciously decide whether it is worth filing a claim. For instance, if you file claims for small things like punctured tyres, dents, or scratches, your claim gets honoured, but the insurer may increase your premium when you renew it.
Moreover, you must forego your NCB, thus closing all doors for saving money on your Car Policy premiums.  
Saving funds on Four-Wheeler Insurance premiums, as is apparent, is effortless. Other things to do to save funds include purchasing only the necessary add-on rides and avoiding installing expensive gadgets in the car.

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