Every country has its own set of auto insurance laws. Sometimes, the federal states may also prescribe some specific requirements for auto insurance. Therefore, if you drive or own a vehicle then there is no way you can escape the expense of auto insurance.
However, did you know that it is possible to reduce the amount of car insurance premium and still be on the right side of the law?
For every car owner, auto insurance without doubt is a major cost. But if handled carefully, you can save money and perhaps get some added benefits from the auto insurance companies for about the same price.
In this blog we share with you some of the practical ways on to how to save money on car insurance. At the same time keeping the needs of your insurance coverage to stay safe and protect your finances and liabilities.
By Comparing Car Insurance Quotes
It may seem a boring job but there are various portals such as policybazaar.com, coverfox.com, myinsuranceclub.com, Moneysupermarket, Confused.com, Comparethemarket, GoCompare and many others which provide free of cost car insurance premium comparison services.
Before renewing your car insurance you must go online to compare the rates being offered by a few big or well known auto insurance companies. It is not necessary that you will get the most accurate quote or the cheapest car insurance quote. But you do get educated about the near exact quote, the various features and facilities being offered by them.
The other advantage of comparing the Car Insurance Quotes by various auto insurance companies is that you can customise your insurance cover by keeping only those features which you want and you can uncheck the others. This is something which the insurance agents do not tell you. This also makes you more confident and informed while filling in the form for insurance renewal.
However, you need not buy your car insurance cover online. You may chose to go through the insurance broker and he may charge for his services, but he offers a far more personalized approach that could result in a cheaper deal or convenience or both.
Calculate the Premium on the Depreciated Value of the Car
Did you know that the one of the factors for calculating the insurance premium of your car is its present value? This is done after deducting the depreciation from the original value of the car. Therefore, it is extremely important that you know the book value of your car as well as its market value before you renew your insurance.
With a little back of the envelope calculations, you can know find out approximately the insurance premium payable. Next you should negotiate with your insurance agent the amount of premium.
With a little calculation and efforts you can actually save money.
Changing your Car Insurance Cover Level to get a Cheaper Quote
The value of car insurance premium is not just linked to the size or value of car. There are many levels in the insurance policy which cover various components. For example in India, there are basically 3 types of car insurance coverage:
1. Third Party Liability Coverage
This is the cheapest or the bare minimum type of cover and also under the Motor Vehicles Act it is compulsory for every vehicle owner to take this cover. Under this, you are provided an insurance cover against any legal liability to a third party caused if you are found to be a driver at fault. This covers damage or injury caused by you to another person or property
2. Collision Coverage
The insurance cover taken under this type protects you financially against the damage to your car. This damage could be caused by collision or an accident. However, the damage to the car due to flood, fire, vandalism or loss due to theft is not included in this type of cover.
3. Comprehensive Coverage
This is more extensive and includes damage to car, theft, third party legal liability and personal accident cover. There are many add-ons in this insurance policy coverage to cover expensive accessories like music system. It is here were you can save money by opting out of unwanted or very expensive add-ons.
Read the Fine Print
Before picking up an insurance policy of a particular auto insurance company, it’s always worth spending a few minutes to check what your car insurance quote includes and what you are being charged for.
Car insurance companies take into consideration various factors to assess how much your car insurance will cost. This may include your age, who else can drive your car, if you claimed any damages reimbursement in the past. Please ask your insurance broker the affect of each factor while calculating the premium amount. This means you can save money on your car insurance without changing cover levels or even auto insurance company. Ask the insurance broker to remove what is not applicable or you are unlikely to use or is too expensive. You have to do this seemingly tedious task to save money – as much as possible on your car insurance
Claim the Discounts and Benefits
Did you know that if you have not charged any claim from the auto insurance company in the past then you are entitled to “No Claim Bonus”? First you must check that you have been provided a deduction in the amount payable and that too it has been given in full. No claim bonus can reduce the insurance premium amount by as much as 50%. Therefore, you must maintain an accident free driving record by having careful and safe driving habits.
Similarly, if you have installed anti-theft devices in your car, then also the auto insurance companies give you some discount on the premium amount.
There is another type of discount you can claim on your premium value. This is called ‘Voluntary Access’ in India. It is the minimum deductible amount that you proclaim to bear at the time of making the claim. The higher the deductible amount you declare to opt for, the lower will be your premium.
Summary of the Tips
You should carefully assess your own specific insurance needs and have only those things included in the coverage for your car. Secondly thoroughly review the fine print and insist of retaining what is good for you and get removed what is unnecessary for you or does not have a favorable cost benefits ratio. Thirdly, you must not hesitate to get all the discounts applicable to you.