Some of us are very particular about things related to money. Be it paying bills or something as simple as buying car insurance. Everything is done vigilantly on time. But in the haste to get the car insurance renewal done, are we overlooking some of the key factors?
It is said that a car insurance policy should be customized to suit the policyholder’s needs. Furthermore, it should also fit one’s budget and not burn a hole in the pocket.
If you were simply renewing your policy in time without reviewing it in depth, you could be missing out on many things that matter.
In this article, we will shed light on some of the tricks that will help you reduce the premium of your car insurance policy.
7 Smart Tips to Lower Your Car Insurance Premium
#1. Gauge Your Requirements
As mentioned above, a car insurance policy should suit your requirements. If you are buying a policy without knowing what type of coverage you need, you are spending either more or less amount of money than you actually should.
This will result in you being under or over insured, both of which are not good. For example, if you mostly drive with friends or family and do not have a passenger cover, you might have to bear the cost of treating their medical injuries in case of an accident.
#2. Know the Market Value of Your Car
This is important while buying a comprehensive car insurance policy. During the purchase journey, you will be asked to set the IDV of your car. IDV stands for Insured Declared Value. It is the approximate current market price of your car.
IDV will ideally depreciate at the time of car insurance renewal. Thus, you need to be aware of the current market value of your car and set the IDV accordingly.
Remember that setting a higher IDV will increase the cost of your car insurance policy. On the other hand, setting a lower amount may result in a lower claim amount in case of total loss (irreparable damage) or theft.
Also, use car insurance calculator to know the approximate amount of premium you need to pay.
#3. Drive Safely
Driving safely is the moral duty of each driver. One should take care of themselves as well as others on the road while driving. This could mean a loss to people as well as to the insurance company.
To avoid these insurers, offer a No Claim Bonus. If you drive safely, you may not raise claims and this gesture will be appreciated by your insurer. No Claim Bonus reduces your car insurance premium.
#4. Look for Memberships
Becoming a part of certain associations like the Automobile Association of India will fetch you an additional discount on car insurance.
If you have any such membership, don’t forget to get in touch with your insurer and inquire about any applicable discount.
Also, buying online car insurance renewal will fetch you more discounts.
#5. Safety of Your Car Matters
As important as it is to drive your car safely, it is equally important to keep the vehicle safe. To do so, consider installing an anti-theft device in your car and protect it from potential theft.
This will also work in your favor and help you fetch a discount on car insurance premium. Make sure that the device is certified by the Automotive Research Association of India (ARAI).
Compare various car insurance plan when you do the online car insurance renewal. This will help you reduce the amount of car insurance premium.
You can compare plan based on the features, price and the services provided by the insurance company. Using a car insurance calculator will help you while comparing policies.
#7. Renew in Time
Timely car insurance renewal will help you avoid having a lapsed policy.
In case of a lapse, you won’t be able to avail any service offered by your insurer and the coverage will cease to exist. You will have to bear all the expenses related to an unfortunate event all by yourself.
Follow the rules and stay insured!