Ways to Reduce Car Insurance Premium
Posted: Nov 30, 2018
When you buy a car, you have to purchase a car insurance policy (as mandated by the Motor Insurance Act). To get the benefits of the insurance policy you have to pay a premium. However, did you know that you can bring down the cost of your policy with a few simple hacks. In this article, we will discuss hacks you can employ to reduce your car insurance premium-
The wisest course of action would be to compare car insurance policies. Different insurers provide different benefits and quotes. The premium also varies from one insurer to another. All insurance companies have websites where you can find details of the services they offer. Moreover, there are many online distribution channels that make it easy for you to decide which policy you want to opt for by preparing a comprehensive comparison of the pros and cons of different car insurance policies along with their premium rates.
Consider switching to another insurer
You may have stuck with the same insurer for years now out of a sense of loyalty. But new developments happen in the insurance world every year which leads to a revision of policies and rates. It’s possible that another insurer offers lower rates than your current insurer.
A car insurance policy is essentially a collection of predetermined and predefined benefits. Your insurer might try to convince you to include all possible benefits. However, the more coverage you seek, the more you have to pay as premium. And you might not even ever require some of these covers. Eliminating these features will bring down your premium.
Collect your NCBs
When you go a whole year without making any claim of your car insurance policy, your insurer rewards you with a No Claim Bonus. You can cut down your premium with an NCB. Now, a car does suffer wear and tear and it does require servicing. But if you do not ask your insurer to intervene for relatively insignificant repairs, you can collect your NCBs to slash off your premium. Remember to renew car insurance policy in time. If it lapses you might lose the NCBs you have been collecting.
If you purchase a new car after selling off your old one, you can link your old NCBs to your new car (make sure you retain your earlier car insurance policy). Request you insurer to hand you a certificate that acts as proof that you have been collecting your NCBs. This way, you can start saving on the premium for your new car right off the bat.
Secure your car:
There are many ways you can secure your car. You can install anti-theft devices like steering wheel locks, burglar alarm etc. These measures reduce the risk of your car being damaged or stolen. Therefore, your insurer will offer you a discount on your premium.
It pays to follow traffic laws:
If you do not run afoul of the law, incur traffic violation tickets then you can get discounts on your premium.While it's understandable that you want to reduce your premium rate, it would be unwise to settle for a car insurance policy that offers very few benefits just because it asks for a paltry premium. At the end of the day, you require mental peace and it comes from knowing that your car is secure.
Anand Gulati is a working professional. He loves to read and write about various finance and insurance topics. In his free time, he often writes blogs to educate the audiences. In this article, he talks about car insurance & ways to reduce premium.