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Wanting the best protective detail for your car is natural. Car insurance is the key to maintaining and preventing technical glitches. The consequences of an accident can be more than just a dented exterior and that is why good car insurance is a necessity.
However, the more features and benefits you have, the higher the cost of the car insurance. One of the most basic car insurances and the one that is made compulsory by the government of India is third party car insurance.
A third party car insurance spares you from the financial liability that comes with an accident with the other party. In case of damage caused to the property or car of the third party involved in a mishap, the costs incurred are covered by the insurer and you don’t end up spending anything out of your own pocket.
Let us look at a few ways to manage the costs of your car insurance premium.
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1. Carefully Assess Your Vehicle’s Model – Every car has a range of models that have different costs and different features as well. When you are looking to buy car insurance, take a look at the model you own because the car insurance premium depends on that. The insurance premium for models that have a higher rate of accidents or a history of engine problems is higher. The high-end models also have higher premiums because their parts cost more to replace and repair. If you have a mid-range model or a lower model, you should compare the prices and definitely negotiate for a better deal.
2. Purchase Add-ons You Really Need – If you buy comprehensive car insurance, you get the option to purchase add-ons with your car insurance. Comprehensive car insurance has better coverage than third party car insurance but at the same time, the premium is higher. The add-ons need to be purchased separately and the utility of each should be considered as each add-on has a separate cost. It adds to the total value and that is why you should choose the add-ons that will really help you save money and be useful.
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3. Compare Different Available Insurance Options – Along with third party insurance and comprehensive insurance, you have another option that is own damage car insurance. Own damage car insurance covers damages caused to your car, theft of your car, losses due to fire, and damages to your car due to natural calamities. In short, own damage car insurance covers costs incurred towards the car of the insured. Since third party car insurance is mandated by the law, own damage car insurance is the perfect companion to ensure you are not left with a hefty bill when an accident occurs. Once you compare the benefits of both, you will realize that the combination of these two types of insurance provides ample security while not costing much together.
4. Increase Your Voluntary Deductibles – Voluntary deductible is the amount that is to be contributed by the insured in case of an accident, and the insurer adds the rest of the claim amount to this to pay for all the repairs. If the voluntary deductible is low, then the car premium is sure to be more. If you choose to increase the deductibles, then you will pay lesser for the car insurance premium but you will have to pay more at the time of an accident. Consider the consequences of your actions carefully and decide accordingly.
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5. Avoid Filing Claims Unless Necessary – Every scratch and every small dent does not need to be claimed by the insured. The benefit of not claiming for an entire year is the cumulative bonus, which is a percentage of your assured sum that gets added to your assured sum next year at no extra charge. Since the sum increases, you can claim the amount when there is a major crash and you need more funds to cover the damages. The cost of small repairs may be very less and in order to provide for these small expenditures, you may end up losing out on an amount that gets added to your policy at the same car insurance premium.
6. Install Anti-Theft Devices – Most cars come with their own sophisticated anti-theft systems. However, if you install a system of your own, then the cost of your car insurance reduces since your car becomes a safer bet. There are plenty of anti-theft devices available in the market however, it is important to choose an authorized dealer and a popular company to make your car safer.
7. Refrain from Unnecessary Vehicle Modifications – A lot of times, people modify the looks and the engine of their cars to make them more sporty or elegant or more suited to their tastes. However, these modifications often end up driving the rate of your car insurance premium higher. Your car insurance premium depends on how risky the insurer thinks the modifications are. That is why it is best to steer clear of any unnecessary modifications.
You can use these tips and tricks to save on car insurance premiums.
Also Read – Does Your Luxury Car Needs An Insurance Policy
