Here we are talking about reducing the amount of premium which you pay for your car insurance, without making you vulnerable to risks! Let's be frank, we all want to save those hard earned bucks when it comes to paying premiums. That too while we want to get covered against those nasty damages which our car could get subject to in an accident.
Before taking a look at the possible ways of reducing your car insurance premiums, keep in mind that you need to abide by the safety rules. Also, take every possible measure to maintain your car, this will automatically decrease the chance of filing a claim against your policy.
So here are some tips on how to reduce your car insurance premium amount without compromising on the features of a car insurance policy.
How to reduce car insurance premium?
● Install safety and anti-theft features: By doing this you will get a discount on your car insurance premiums as you will be considered as a responsible driver who cares about the safety of his car and protects it against thefts. Insurance companies see this as a plus point as you might not make a claim against your policy at all!
● No Claim Bonus (NCB): You are eligible for a discount on your car insurance premium if you do not make any claims against your policy for a set amount of time. Of course, there is a limit to the maximum amount of NCB discount one can get. You can get a discount of up to 50% as NCB on the premium.
● Comparison of Insurance policies: It is wise to dedicate some time to do a research on the car insurance policies available in the market. Nowadays it has become very easy to compare policies, offered by various insurers, online. Just type the details of your vehicle and select the features of the policy you are looking for and you will get multiple results with different premium amounts which best suit your requirements.
● Avoid Luxury Gadgets: Added luxury features like night vision may increase your premium amount as these features increase the market value of your car. Hold your horses and try to avoid buying these enhancements altogether, unless you absolutely need them.
● Choose the right coverage: While choosing the coverage, try not to go overboard by contemplating the worst possible cases for which you want to be covered for. All the car insurance policies will cover you against major damages. Add-ons will increase the amount of premium you will pay.
● Avoid making claims unless for major expenses: If you are thinking of making your insurer pay for all the damages that happen to your car, you will lose your no claim bonus discount. So, try not to make very small claims. File a claim only if you cannot afford to pay for the damages.
● Renew on time: Timely renewals of your insurance policy will ensure that your no claim bonus is carried forward to next policy.
● Shop online: There will be a difference in your car insurance premium when you buy a policy online versus when you buy it offline. Offline policies include the commissions payable to your insurance agent. When you buy the policy online this cost is directly removed. If you buy a policy online you will also be able to easily compare the same kind of policies side by side, analyze the features it offers and also the discounts you are eligible for.
● Research every time you renew: At every renewal cycle of your car insurance policy, you need to take the required measures for reducing your premium amount. This is a job for which you need to take some time out every time you renew your policy.
While it is possible to save some money on car insurance premiums, see to it that you are not compromising on the features which the insurance policy offers. There is obviously a limit to which one should try to cut down on the costs of premiums.
Drive safely and avoid collisions is all we say while signing off!