For most of us, paying for car insurance seems like a burden. It is mandatory to have a car insurance in India as these policy documents are very helpful when your car meets with an accident or theft.
A lot of us make the mistake of considering a car insurance as something that has a relatively fixed cost, however, it’s not so. It can be lowered which will help you save money. Once you are aware of what exactly affects your auto insurance rates, you can figure out a way to save on a four-wheeler insurance and get adequate coverage without.
- Drop car insurance you don’t need
If you have an older car, it is time to drop comprehensive and collision coverage. Comprehensive coverage pays in case your car is either stolen, damaged by natural calamities, vandalized or hits an animal. Collision insurance, on the other hand, pays for damage to your vehicle in case it flips over or crashes into another vehicle or object.
If your vehicle is worth less than your deductible along with the amount you pay for annual coverage, then it’s time to not buy these coverages. Consider whether it’s worth paying for a coverage that may repay only a small amount and then get car insurance renewal accordingly.
- Improve your credit and maintain a clean driving record
Your credit score plays a very important role in the rates you are quoted for car insurance. Car insurance companies use credit scores as a tool to gauge how risky a customer might be. You can improve your credit score by timely paying your bills and managing credit accounts responsibly.
You driving record is another deciding factor in setting the premium amount. Having multiple traffic violations and vehicular accident record will lead to higher insurance premiums.
- Raise your deductible
Keeping your deductibles high can considerably lower your car insurance premiums. A deductible is the specific amount of money you have to pay before insurance benefits begin. When buying online car insurance, just make sure to select a deductible that is affordable. This is because you need to pay this amount when you have a car accident and make a claim. So raise your deductible only if you are confident that you have ample cash to cover it, in case you ever make a claim.
- Take advantage of car insurance discounts
Insurance companies offer a plethora of discounts, however, they don’t always advertise them. Here are some ways you typically will get a significant discount for:
- Purchasing more than one policy from a single insurer, such as your auto and home insurance, or having more than 1 car insured.
- Driving a car with safety features, like airbags, anti-lock brakes and anti-theft devices like alarm systems.
- Having a good driving record with few or no minor accidents
- Being a student with high grades
- Completing an accident prevention or defensive driving course