Insurance is essential for your car. With the increase in the ex-showroom price of vehicles, insurance also comes at a premium. Getting your car completely covered under insurance gets even more expensive. There are certain types of car insurance available in the market. It is a wise decision to buy insurance according to the requirements and usage. A well-researched decision for buying or renewing car insurance is always better. It definitely helps to get the best deal.
How Can You Save on Your Car Insurance?
1. Knowing which car to buy
First of all, the decision to buy a new car should be according to the exact needs. The cars come in different segments, engines, and fuel type options. Finding the best fuel option for you is also important. Insurance premiums are affected by the size of the car, fuel type, engine capacity, etc.
Point to remember: It is not compulsory to buy insurance from the car showrooms. It is necessary to buy insurance but not from the showrooms. You can easily find the best insurance for you and go with that.
2. Knowing which Type of Insurance and Coverage to choose
Some people use their vehicles majorly on the long-highway runs. This type of vehicle needs full coverage and Comprehensive Insurance with a personal accident add-on.
A vehicle running mostly inside the city premises, a less crowded city, would need just Third-party insurance.
Hence knowing about the insurance is also very important.
3. Comparing Insurance Options
Several companies offer car insurance. It is up to the customer to choose the best option from them. You need to compare the policies and shortlist some of them. The side-by-side comparison will give you the best idea about the coverage plans and their premiums.
4. Looking for Discounts
Generally, the discounts available are mentioned on the website or the brochures of the insurance policies. Still, many discounts are available when you buy the policy. Some discounts are provided from the insurer’s end and some from the company’s end.
Apart from this, there is a provision for providing a bundle offer. If you insure multiple vehicles at the same place and time, insurance companies provide discounts in this case. Very few people are aware of this.
5. Getting No Claim Bonus
you will get a discount on the next insurance If the vehicle has not been to a garage for any claims during the complete term.
The discount increases significantly with time.
|
Number of Claim Year |
Discount on premium |
|---|---|
| 1st claim-free | 20% |
| 2nd claim-free | 25% |
| 3rd claim-free | 35% |
| 4th claim-free | 45% |
It is not advisable to claim very minute damages very frequently. This will reduce the no-claim bonus.
6. Get the No Claim Bonus Transferred
The benefit of your no-claim bonus can be transferred when you buy a new vehicle. The insurance policy of a new vehicle should be under the same name as the old policy. Being aware of this will reduce the premium of the new policy.
7. Declared Value of Older Vehicle
If you have an old vehicle, you need to declare a value for your car. You must know that the insurance premium will be according to the value declared by the owner. If the vehicle is used frequently then give the exact value according to the inflation because the parts will be expensive. If the car is not under frequent use then the declared value can be kept low.
Conclusion
Having a car insured is mandated by the government. The premium required for insurance is rising with the increase in the prices of cars and their parts. Not having insurance is not at all recommended. You can save on your car insurance and the premium paid for it. There are some ways by which you can do this. Buying a car according to your needs and limits and not going beyond is very important. There are some important things to keep in mind while searching for insurance. Knowing the types of insurance and comparing them side by side followed by looking for discounts is what you must do. You should know about the no-claim bonus and how it helps.
