Getting a car insurance is as simple as getting a haircut today; yet, only a handful of us understand the true nature of an insurance policy. There are a lot of options available in the market with a range of benefits, which makes it hard to pinpoint the perfect car insurance.
Hence, if you are looking for an affordable car insurance, here are 10 things to take care of before making the decision that will end up giving you a much better deal.
1) Check Your Car’s Ratings
It may come as a surprise to you, but sometimes it does not just depend on how well your driving record is; your choice of the car alone can drive up your insurance premium. Insurance companies often charge more for car models that have a high claim rate. On the other hand, some even charge less for heads like collisions on durable models that have good safety test scores. Hence, before you start comparing policies in the market, research well about your car’s ratings to determine where you stand.
2) Don’t Choose to Pay Via Installments
People who pay their car insurance premiums in lump sum annual amounts will be better off as compared to the ones who pay monthly or quarterly installments. The last bunch will always end up paying more to insurance companies in the long run. Hence, if you can afford to do so, always try to pay your premiums in single lump sum amount.
3) Reduce Coverage on Old Vehicles
Dropping coverage on an old car, like collision and comprehensive coverages, will help you save a considerable amount of your insurance costs, thus making the premium on the car more affordable. You may be wondering that this exposes your car to a lot of risks, but consider this. A car that is 5-10 years old will lose a lot of value through annual depreciation. An insurance company always reimburses the amount that is less than or equal to the current value of the car. Thus, it makes more sense to bank the premium savings and add them to your emergency fund instead.
4) Be Loyal to One Company
Companies often reward their existing customers with alluring discounts if they choose to come back for other insurance needs. It is not crucial that you necessarily have an existing car insurance with the company to get a discount for the new one. Some companies, for example, offer discounts of up to 15% to customers who choose to ensure both their home and vehicles with them. Hence, get in touch with your existing insurance providers even before you begin your research.
5) Raise Your Deductibles
Deductible is the amount that goes out of your pocket to get the car repaired when you make an insurance claim. Although it might be tempting to choose the lowest deductible possible to get as much coverage as possible during an accident, it might make more sense to opt for the highest deductible that you can afford. Choosing a voluntary deductible helps to reduce the car premium. In this way, you can pay for affordable damages yourself and save the insurance cover for a rainy day.
6) Research Comprehensively
There are a lot of options in the market with even regional insurers offering policies which are at par, and sometimes even better than international players. Many insurers offer benefits like no-claim bonuses, which make them a better option than their counterparts. Hence, always do your research and go through the policy details thoroughly while choosing the insurance provider.
7) Make your Car More Secure
Do you know that your insurer is more likely to cut down on your premium if your car is secure? It can easily be done by installing anti-theft security systems such as an alarm and an immobilizer. That being said, some insurers even go to the length of considering whether you have off-the-street parking or not.
8) Add Experienced Drivers to Your Policy
If you are under the age of 25 or have a bad driving record, insurers may charge you a higher premium amount. You can avoid this and get an amazing car insurance deal by adding an experienced driver, such as your parents or older siblings, to join your policy.
9) Check for Credit Card Rewards
Many insurance companies provide amazing discounts or cash backs by teaming up with credit card companies as a reward to users who frequently use these credit cards. Hence, do not forget to check for such offers in the policy guidelines while choosing your car insurance.
10) Reevaluate Your Policy While Renewals
Car insurance companies have been known for increasing their policy prices sometimes to keep up with the market fluctuations. Hence, always make sure that you reevaluate your insurance policies every time they are up for renewal. Car insurance is an extremely competitive market, and there are a lot of chances that you will end up finding a much more reliable and cheaper option in such cases.
The bottom line is to keep your eyes open at all times while choosing a car insurance. You may be surprised at the quality of deals that you end up finding.
Author: DineshMittalThis author has published 3 articles so far. More info about the author is coming soon.