The rising living costs have made it mandatory for us to save money at every nook and corner possible. One of our pain areas is car insurance. It emerges as a painful nuisance cost required by law. You realize its value only when you need it. It’s a smart and prudent move to purchase adequate car insurance.
But things need not be dismal. In the present competitive market, you can prevent the financial drain of your pocket by merely following the top five strategies in regards to your car insurance. Stay hooked!
- Get quotes from different insurance companies
It might seem like an obvious move but it is still amazing at how many people skip on it. Most tend to stick with the same insurance company or buy what the car dealer is selling at the time of car purchase. Thanks to the internet and various comparison sites; you can easily compare insurance quotes of various companies along with what they are offering. Comparing prices and benefits offered would help you choose the most cost-efficient and the best-fit policy.
- Bundle your insurance policies
It is almost the norm with Car Insurance Companies to give attractive discounts if you are purchasing more than one policy from them. They offer it to you as a bundle and you can save a significant amount of money in this manner. The most common is the bundling of your car insurance and home insurance. You can also bundle the insurance of multiple vehicles in case you own them.
- Be driving smart
Not many realize but your driving habits and style have an impact on your car insurance premium. The first thing that you can do is turn yourself into a mindful and vigilant driver. You may not be aware but any traffic violations and tickets earned by you decrease your credibility as a driver. The insurance company has the means to access this data about you. Hence, if you are able to avoid such penalties, you are likely to pay a lower premium amount.
Another good way is to take a defensive driving course. It is held in high esteem and many insurance companies provide you attractive discounts for it.
One more smart way is to cut on your driving mileage. Driving your car less means it has reduced vulnerability to be involved in an accident. You can easily achieve this by commuting to-and-fro to work in a carpool or public transportation. It would not only save on premiums but also keep your car in top condition, thereby saving you servicing and repairing costs.
- Install safety features
Almost all of us love to modify our cars. While most modifications increase the car premium amount; installation of security features like anti-theft system, double security locks, etc. lower our premium amount sizeably. They emerge as an investment that can save way more than its cost. They also enhance your credibility as a responsible and mindful driver. Likewise, try to keep other car modifications as minimum as possible as they are likely to raise your car premium from the standard amount.
- Increase your policy deductibles
Most of us believe a low deductible to be profitable. But it is the reverse that is a smart move. The deductible is the amount that you would pay in case of an accident before the insurance company kicks in to bear the cost. For instance, if you have taken a car insurance policy of Rs. 15,000 and a deductible of Rs. 4000; then you would need to pay the first Rs. 4000 of car repairs before the insurance company gets into the picture and bear the next Rs. 11,000 cost. A higher deductible means that the insurance company’s payable amount is less and thus you will need to pay a lower premium.
Simultaneously, you need to bear in mind that the deductible amount is something that you can pay in the scenario of a mishap. You must never choose a deductible amount that might prove way beyond your means. Maintaining a balance is the key.
As far as car insurance is concerned, you can easily save by keeping updated with the latest norms and doing complete research. Remaining knowledgeable and acting smart will help you save a sizeable amount of money.