Owning a car is no longer a luxury! It has become a necessity in today’s time. However, as per legal mandate it is important to buy insurance for your car. It is wise to buy a car insurance that not only covers for third party but also gives security in case of any damage, loss or accident to your car.

Buying a car insurance is an investment but it is an investment to be done with a sensible mind. You need to select a plan that is light on your pocket and provides a complete protection as well. So, how can you make a smart decision of buying a car insurance that can help you cut unnecessary costs. Let us take a look at few tips for cutting car insurance costs.

Ideas for Cutting Car Insurance Costs

Compare plans – While choosing an insurance policy for your car, make sure you understand your insurance needs and budget. Then shortlist plans of few good insurers and their policies before making the decision of which plan to invest in.

Deductible – Always remember to keep your deductibles higher, that will help reduce your premium. Deductible is the amount you pay to the insurer at the time of filing of a claim.

Credit rate –Keep in mind, it is crucial to maintain a credit record regularly. A good credit rating history can aid in cutting insurance costs.

Discounts – Insurers offer various discounts on different plans to policyholders. Check and ask for discounts before buying any car insurance plan to cut costs.

Evaluate needs – Make sure you evaluate your insurance requirement before purchasing a car insurance. Once you know your need exactly it will be easier to choose a plan that matches your requirement and helps avoid unnecessary costs.

Add-ons – While purchasing new car insurance, remember to transfer the old car insurance add-ons like NCB. That will help reduce the costs and premium for new car insurance.

Drive safely – By being a responsible driver you can help reduce the amount of your insurance premium. People who drive safely and minimize traffic violations or have completed an accredited defensive driving course are rewarded by the insurer with discounts.

Location – Car insurance costs differ on the basis of location of the policyholder. You can find out about location costs and get them reduced as per your place.

Many drivers – If you are buying a car insurance policy for a family where all the members can drive, then you can ask for lower premium quote or discount from the insurer.

Anti-theft devices –If you install anti-theft devices in your car, you may get a lower premium rate on your car insurance thus saving on the cost.

Pay as per usage – At times certain insurers provide plans with premiums depending on how much you drive. Review your car usage, as if you drive your car occasionally then you can enjoy benefit of lower premium.

Policy lapse – Every insurance policy has an expiry date, so make sure to avoid policy lapses. In case of lapsed policy, insurers charge a higher premium thereby increasing your costs. So, it is advisable to renew your policy on time.

There are many factors that come into consideration while buying a car insurance and taking into account their effect is the best way to cut car insurance costs. Make a complete check and use these beneficial tips to cut costs on your car insurance.

FAQs – Frequently asked questions.

Q1: Is it correct, that if one drives long distances regularly then their premium for car insurance policy is higher?

Yes, usually who drives long distances on daily basis is supposed to pay a higher premium amount on their car insurance.

Q2: Is the insurance for big cars more?

Yes, big cars cost more, so does their insurance. Car insurance for big cars is higher than any small or lower cost commute car. Look for your car model and its approximate insurance before buying a car insurance policy.

Q3: Does premium for car insurance depend on many facets that can increase or lower the costs?

Yes, the premium for a car insurance depends on numerous aspects like age, model, type and engine capacity of the car. These reasons can increase or decrease your car insurance costs.

Q4: Is it wise to raise a claim for every small damage to the car?

No, you must avoid raising claims for minor damages to your car as it will help reduce the insurance premium. If you raise a claim the no claim bonus shall break and you shall not be able to save on renewal premiums. NCB benefit is granted only for no claim years which also reaps a discount after passing of a certain time period of the policy. Hence to keep your car insurance costs at a low, it is wise to not raise minor or inexpensive claims.

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