If you have a rather old car, it makes no sense for you to pay for collision or for a comprehensive insurance cover. Why? That’s because in case of an accident when the car is totaled, the insurance will pay for the actual cash value of the car, which too is determined by the insurance company. So if your car is old, it makes better financial sense to insure it for the basic third party cover only.
Buying the Car ‘you need’
If you are in the market to buy a new car, you should remember that the insurance rates vary with the type of car you are buying. This is a criterion where sense will prevail more than show, for this is where pragmatism runs the rule over aspiration. Don’t buy an unnecessarily expensive car and pay for an unnecessarily high insurance when a different, less expensive car will serve your purpose well.
No, credit scores don’t just affect your interest rates on loans; they are taken into consideration even when you buy insurance policies. If you have the time, brush up your credit score, make all due payments on time, and pay any overdue bills. According to most insurers, people with better scores tend to make fewer claims, thereby enabling providers to offer them better premium rates.
Ask for Discounts
More often than not, insurance companies have a number of discounts available on their policies. Even if they don’t mention any, make sure you ask for the available discounts before you buy an insurance policy.
When the question is about saving on your car insurance
, let it be understood that it is all about research and knowledge. You will need to invest a bit of your time, but the advantages that you will get will make it all worth the effort.
**To understand exactly about the policy coverage, exclusions etc read the Policy Wordings carefully.**