Owning a car is one of the many things that most of us wish for. Once you have a brand new car, you would want to do everything possible to keep it safe from any damages whatsoever. People spend loads of time just selecting the model of the car that they want. It would be great if they spent that much time to choose the right car insurance policy as well. Don’t take this lightly, as you must receive adequate coverage at an affordable rate.
Amid your busy life, it becomes a little tedious to go through different policies or visit the insurance company’s branch office to carry out all the necessary paperwork. However, with the developed technology, you need not worry as it is possible to purchase car insurance online as well. People even end up spending more than the required amount as premium. You might not know the different ways of cutting down on your car insurance premium amount; here are a few.
- Not Claiming for Minor Repairs
Note that, each time you request a claim, you will have to pay the deductible amount. In case your car bumps into someone else’s vehicle and gets a minor dent or scratch, it is advised not to file a claim, as you will have to pay deductible for small damages and also lose your accumulated No Claim Bonus at the same time. The NCB, over time and with a no claim record, allows you to save on your premium up to a certain percentage during renewal.
- Switching Insurance Policies
If people are not satisfied with their current insurance provider’s services, they are free to switch to another one. And for those who have accumulated NCB need not worry, as it is transferrable. However, after the NCB is transferred, the insurer might add a specific transfer fee on the full premium. And if you’re a new owner of car, who is taking new insurance on the transferred vehicle, you must pay the entire premium with no NCB concession.
- Paying deductible
The deductible is an amount that is supposed to be paid by you while making a claim from your insurer. One way you can reduce the premium amount is by paying more deductible because it happens to be inversely related to your premium amount. In simpler words, the more deductible amount you pay, the lesser the premium. Remember to not pay an amount as a deductible that you might find expensive in the long run. Choose the figure that you find realistic and is light on your pockets. If in the end, you have to pay too much money, purchasing a policy will be of no use.
- Transferring No-Claim Bonus
If you pass your policy term period without raising a single insurance claim, your insurance provider offers concession on the premium amount during renewal. In case you plan to sell your car and have accumulated NCB, it is transferrable to your new car because the policy belongs to you and not your vehicle. It is probably a concession offered for excellent driving behavior that you’ve shown.
- Comparing Online
Now you must have observed, almost all insurance companies sell car insurance policies online. The Internet has even made it easy to compare different policies and their coverages before buying. To make your buying experience easier, you can get quotes instantly using the car insurance premium calculator. Later, as per your budget, you can also adjust your coverage.
People sometimes tend to panic and purchase more coverage than required and end up paying higher premiums unnecessarily. Therefore, you must note down your requirements and analyze them properly before finalizing a plan.