Smart ways to save on car insurance
Living on a budget and trying to save as much as we can is an aim that everybody has. People try to trim their budgets at every possible stage, but one of the areas that are mostly missed out on is car insurance. Generally, when people sign up with an insurance provider, they tend to get complacent (read: lazy). They start excusing any increase in the premium as a given. But when car insurance has become a fixed expenditure in your budget, you might want to rethink that idea. As long as you are willing to do the preliminary work, there are a number of discounts to be availed. Here are some of the things that you should be doing, to ensure maximum savings on your insurance.
This step is a no brainer. Even if you have a good insurance provider, there will still be some others that will offer you better prices. The rates for car insurance vary with each company, even for the exact same coverage. Get quotes from a minimum of 3-4 insurance providers, or better yet, use a comparison site for ease.
And since we are on the topic, the price should not be the only factor that you consider. Also, look at the reputation of the insurer as well as the customer reviews before you sign that cheque.
Don’t buy Collision or Comprehensive Covers for Old Cars
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 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 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.**