How to Save Money on Car Insurance?
Insurance is a crucial aspect because I am sure your traffic rules have made car insurance mandatory. So if you have decided that you are going to drive a car or even a bike, be rest assured, you cannot avoid this additional cost legally. But what we can do is try to minimize this additional cost by using some pretty neat hacks. So here are 6 hacks to save money on car insurance.
1. Get a car that adds value to your life
Get a car that adds value, don’t lose yourself on luxury if you haven’t achieved financial freedom yet. Remember bigger cars cost a bigger insurance premium. So purchase a car that is enough to add value to your life. I pay a higher premium for my Ford Ecosport but I don’t mind it because I love the SUV feel I get from it. I purchased this car for a price that is slightly higher than most rightly priced in-demand SUVs like the Nissan Sunny or Toyota Yaris, but still, largely lower than its other SUV counterparts.
2. Take multiple quotes & compare the value for the price
Take multiple quotes from many insurance companies and compare the value for the price. We recommend you study most insurance policies to identify which company gives you a good value price for your insurance and remember. Leverage the no-claim bonus time to reduce your premium every year. To ensure no claim, do not drive your vehicle harshly and drive within the traffic rules. This will save you other unnecessary costs that may pop up.
3. Study all aspects of a policy before purchasing
Now make sure to speak to your agent or car dealer about the policy. Ask them any questions that you may have. If you have no questions, google for some questions. Trust me, not everyone knows much about insurance, so educate yourself. It is very important.
Normally once you make a purchase, you will get a call from the insurance dealer and this call is very very very important. The reason it is so because they will give you all the information that you need not know. So in case you have any questions, make sure to use this call to be very sure. If you feel some insurance coverage is not required, remove it. If some coverage is required and essential, go for it depending on how you drive, your city roads as well as other risks and factors.
4. Make sure the coverage is appropriate to your lifestyle and needs
I will always recommend the no depreciation coverage and right to invoice coverage on your policy. The reason for that is in the event of anything bad happens, at least you won’t lose a lot of your car value. In fact, most right-to-invoice coverage will actually give you a replacement cost for another car of the same model. Make sure to double-check with your insurance provider as these clauses may vary from country to country.
5. Avoid making unnecessary claims
Most insurance policies give a no-claim bonus. By this, the premium for the next insurance period will be lower. When I purchased my new car Baleno costing around 900K. I had to pay 25k roughly and I personally feel I had taken all the insurance protection I needed. By 4 years in, my premium had dropped to a neat 16k per year. You can do this too. Just make sure to drive carefully so that you can avoid unnecessary claims.
6. Pay your insurance on time
When you have an existing policy and you do not pay on the due date, your insurance will lapse and with that, you will lose the accrued no claim bonus as well as the lower premium which you had built up.
Also, with that, your premium will go back to the original high cost. In my case, after 4 years I pay 16k. However, if the car insurance policy lapses, then my new policy may be expecting me to pay 25k again (I’m just assuming 25k but it is normally lower than 25k as the insurance will depend on the age of the car too). The new policy’s premium will still be higher than the lower premium you may be enjoying now. Ensure you pay your insurance on the due dates to avoid any unnecessary problems.
There are some car insurance saving tips covering How to Save Money on Car Insurance. We hope you found that helpful. If you feel there are other creative hacks to save money on vehicle insurance, do let us all in the community know by commenting below.
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