Having car insurance is mandatory in India. Yet many people try to avoid shelling out money on a car insurance premium. They often view it as an unnecessary expense. This can really backfire in the event of an unforeseen incident.
While each 4-wheeler insurance provider differs in their terms and conditions, there are some smart ways by which you, as the buyer, can save money on your policy. Here are five quick tips to save good money on your car insurance premium.
Shop around for discounts
When purchasing car insurance, make sure to look at a couple of providers and compare their rates. This will help you understand which policy is best suited to your needs and budget. Do remember to also ask about discounts that may be running that will help you save on your premiums. Finding discounts is easy when you search for car insurance online.
Raise the deductible
A deductible is an initial amount that the claimant has to pay before the insurance company covers the damage. If you raise the deductible, your car insurance premium goes down by a significant amount. This is a really great way to save money on your car insurance premium. However, do be sure that you have sufficient finances to pay the large deductible in the event that you do need to make a claim.
Avoid letting the policy lapse
Letting your car insurance policy lapse means you need to take out new 4-wheeler insurance all over again. This might seem like a minor inconvenience until you realize that you have missed out on the no-claim bonus. A no-claim bonus can keep increasing each year, provided that you do not make any claims. This will help you save money on your car insurance in a truly effective way. You could consider asking the car insurance company to automatically renew your policy or even request a reminder to be sent to you when your policy is due for renewal.
Secure your vehicle
Experts often recommend fitting your car with vehicle anti-theft systems. These are viewed favorably by insurance evaluators and could possibly get you a much lower premium on your car insurance. Additionally, make sure your vehicle has working airbags and seatbelts to boost its road safety for passengers. It is also important to note that any unnecessary modifications made to your vehicle – such as a fancy spoiler – can see you paying a higher premium.
Maintain good credit
Finally, never neglect your credit history. Many car insurance providers examine your credit history before deciding your premium. In this situation, good credit history can see you pay a much lower premium whereas a neglected history with missed credit card dues could see you evaluated as a risky customer with a high premium.
So, evaluate your credit record, pay any pending dues before searching for a car insurance policy.
A good car insurance policy will save you from a heavy dent in your bank account in the event of an unexpected road calamity. It will also safeguard you against third party claims. Shop around and choose the best 4-wheeler insurance policy in India to suit your needs.