Save on Premiums: A Guide to Saving on Car Insurance

Insurance is essential for your car. As the ex-factory price of the vehicle increases, the insurance premium also increases. It becomes more expensive to buy full coverage insurance for your car. There are certain types of car insurance available in the market. Buying insurance as per the requirement and purpose is a wise decision. A well-researched decision is always better when buying or renewing car insurance. This will definitely help in getting the best deal.

How to save money on car insurance?

1. Know which car to buy

First of all, the decision to buy a new car should be based on exact needs. Cars are available in different models, engines, and fuel types. It is also important to find the fuel option that best suits you. Insurance premiums are affected by the size of the car, fuel type, engine capacity, etc.

One thing to remember: It is not mandatory to buy insurance from a car showroom. It is necessary to buy insurance, but it is not necessary to buy it from a showroom. You can easily find the insurance that suits you best and buy it.

2. Understand which insurance type and coverage to choose

Some people use their vehicles primarily for long-distance highway travel. Such vehicles require full and comprehensive insurance with the addition of personal accident coverage.
Vehicles that are primarily driven within city limits, in cities where traffic is not as congested, only require third-party insurance.
Therefore, it is also important to understand insurance.

3. Compare insurance options

There are multiple companies that offer car insurance. Customers can choose the best plan from among them. You need to compare the policies and shortlist a few. A side-by-side comparison will give you the best idea of ​​the insurance plans and their premiums.

4. Look for discounts

Generally, discount information will be stated on the website or in the insurance policy brochure. However, there are still many discounts when buying insurance. Some discounts are provided by the insurance company, while others are provided by the insurance company.

On top of that, there are also provisions that offer bundled benefits. Insurance companies offer discounts if you insure multiple vehicles at the same time and place. Few people know about this.

5. Get a no claims bonus

If the vehicle has not been to the garage for any claims during the entire insurance period, you will get a discount on your next insurance.

Over time, the discounts can increase significantly.

It is not recommended to frequently claim small losses. This will reduce your no claim bonus.

6. Transferring No Claim Bonus

The no claims bonus benefit is transferable when you buy a new car. The new car’s insurance policy should be in the same name as the old policy. Paying attention to this will reduce the premiums on the new policy.

7. Declared value of used car

If you have an old car, you need to declare the value of the car. You must know that the insurance premium will be calculated based on the value declared by the owner of the car. If the vehicle is used frequently, give an accurate value based on the inflation rate, as parts can be expensive. If the car is not used frequently, the declared value can be kept lower.

in conclusion

It is mandatory for the government to buy insurance for cars. As the price of cars and their parts increases, the insurance premiums also increase. Not buying insurance is not recommended at all. You can save money on car insurance and premiums. There are ways in which you can do this. It is very important to buy a car according to your needs and limitations and not go beyond the limits. There are some important things to remember when looking for insurance. You must understand the types of insurance and compare them and then look for discounts. You should know about no claim bonuses and how they can help.