Buying a new car is a matter of pride for most people. The car becomes a part of your daily life. You use it not only to commute to work and do your complete your daily chores too. The car also becomes an instrument through which you spend quality time with your loved ones, like going on vacations or even those short trips to the shopping malls and cinema halls with your friends or family. So, it is vital, and prudent, to make sure that your ride is protected in all situations, and one good way of doing this is to have car insurance.
While buying a car itself is a big expense, a bigger expense would be getting it fixed if it gets damaged in an accident if you didn’t take insurance. You may feel that paying for car insurance is an additional cost but if you don’t want insurance, remember that around 4.5 lakh road accidents are reported each year on Indian roads. And around 2.5 lakh vehicles get stolen in the country every year, of which, a majority are never recovered. Which means you could lose all the money you saved and spent on that car in an instant. But you don’t have to.
Having a comprehensive vehicle insurance policy can protect you financially if you find yourself in either of these situations. Moreover, it can also cover you and protects your vehicle from natural calamities like floods and earthquakes, as well as man-made disasters like vandalism and riots, or even thefts.
So yes, it is crucial to have a car insurance policy for your beloved vehicle. However, that does not mean you need to spend a bomb on getting your car insured. You can create the right balance between adequately protecting your vehicle while saving on insurance premiums by following a few smart tips.
Here are some of the best tips to help you save money on your car insurance:
Negotiate at initial purchase
Most of us forget or hesitate to negotiate with the vehicle dealership at the time of the car purchase. Customers only bargain for some free accessories at this stage. If you feel that the insurance being offered by the dealership is expensive, demand a discount or offer to get insurance done externally. Usually, this technique works, and you will get to save some money.
Use no claim bonus wisely
If you buy car insurance and don't make a claim in a year, you will be entitled to a no-claim bonus (NCB) for every claim-free year. It is a discount offered to you specifically for the next renewal. After five consecutive claim-free years, the NCB can become as high as 50 per cent. So it is a good idea not to claim insurance for small damages or repairs, thus keeping your ‘no-claim-bonus’ intact. Unless it is a major repair that is needed, you could pay out of your pocket and end up saving a much larger sum in the form of NCB when you renew your policy.
Transfer bonus
Not many people know that the No Claim Bonus is linked to the policyholder, not to the car. This can also become a major advantage when you switch your car as you can transfer the accumulated no-claim bonus to your new car’s insurance policy. This would bring down the cost of insurance for your new car. So when you sell an old car, retain the insurance in your name.
Increase your deductible
Deductible in an insurance policy is the amount you agree to pay on your own in case you file an insurance claim. Increasing your deductible is a simple way to save on your car insurance. Increasing the deductible will cost you a little more if you ever need to file a claim, but if you increase your deductible by just a small amount, it will help you save a significant amount in premium cost over the long period. You can also lower the deductible in the next renewal if it feels too high.
Adopt safety measures
Car insurance premiums depend on various factors like the car’s price, cost to repair, area of residence as well as past claim records. Therefore, most insurers offer a discount for features that decrease the risk of personal injuries, car theft or damage. So, it is possible for you to get a discount if you use safety measures like an anti-theft device or a device to track the driving pattern of your car. Your car’s safety ratings could also play a role in getting insurance at a lower cost.
Consider long-term plans
You can always check out long-term insurance plans to save on premium costs over the long term. Instead of a one-year plan, you can consider a two or three-year term for your car insurance. Most insurers offer significant discounts on long-term plans. Moreover, by doing so, you also avoid the annual increase in insurance premiums for the period.
Renew before expiry
If the car insurance policy is renewed on time before it expires, it will help you save some money on your car insurance. If you renew on time, you do not need to go for a physical inspection of your car either. Also, if you let the insurance policy lapse, it could also lead to an increase in premium. So renewing your policy on time will not only save your money but also your time and effort.
Choose the right car insurance policy
While you work on some of the above-mentioned factors to get a good deal, it is equally important that you choose the right service provider that has a superior track record on crucial aspects like claim settlement and customer service. Finserv MARKETS, through its tie-ups with leading insurance companies, makes this shortlisting of an insurance company much easier for you. The platform lets you compare different policies offered by some of the leading insurers in the country and helps you pick the right car insurance plan suitable for your needs.
You can also make use of the car insurance calculator on Finserv MARKETS to calculate the exact premium for your car’s insurance. This will ensure that you make an informed choice to get the best car insurance policy that meets all your requirements.
Good car insurance can be immensely helpful in many unforeseen situations and there are several factors that could affect the premium of your car insurance. In all situations, make sure that you have adequate protection as per your needs. Choosing and getting the best car insurance right from the comfort of your home has never been this convenient before. Log on to the Finserv MARKETS website or App to get the best deals on car insurance, today.
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