With expenses rising constantly and incomes remaining stagnant, many of us struggle to keep the balance intact. As a result, we always look for ways to reduce our expenditures without making too many compromises. Insurance premium is one such area where we always hope to get discounts. But did you know that you can cut the corners even without waiting for discounts offered by the insurance providers? Yes, that is correct! There are some interesting ways in which you can reduce your car insurance costs.
Compare Between different providers
When you begin shopping for your car insurance plan, you must start off by comparing the available options. This is an excellent way to find a good car insurance plan at a good rate. You can then effectively increase your car insurance cover even after you pay the exact same premium amount as before.
Let us understand this with an example. Let us assume you have a policy from ABC Insurance Company. For a comprehensive car plan, you are currently paying a premium of INR 800 a year. You however are unaware that XYZ Insurance Company is offering the same cover along with the zero depreciation rider and the engine protection rider, at a price of INR 800. You get to know this only when you compare. Now equipped with the knowledge, you promptly shift your insurance provider. Had you continued with ABC Insurance Company, you would have to pay a premium of INR 1200 to accommodate the riders that you needed.
This illustration clearly shows us how beneficial insurance comparisons are. You must, without fail, run the comparison. It is very easy to compare the different car insurance policies online and it hardly takes any time. Give it a try and make a very economical deal in the process!
Check for important exclusions
While comparing helps you find the best cover at the best rate, there are some other ways in which you can economise your car insurance cover too. Let us see what they are.
First and foremost, you need to be alert when choosing your car insurance policy. Many a time we make the mistake of not reading the policy wordings. It is important to do so as only when you get to you know what the exclusions are. At times, you may end up buying a policy without knowing that it doesn’t cover your requirements. Then, left with no other option, you have to make additional purchases to get the cover you originally wanted. This is completely unnecessary and can be avoided. So read the policy well, understand it and choose the right cover. You will not have to pay any extra premium thereafter for your ideal car insurance cover.
Club your insurance cover
This is a handy tip that you can use to lower your car insurance costs. If you already have a preferred general insurance provider from whom you bought health insurance plans, home insurance plans, travel insurance plans, etc, look to buy your car plan from the same insurer. You can then ask for a discount, and being a loyal customer, you may just get it. This will help you get a larger cover at the same rate or a similar cover at a lowered rate. Either way, you will end up making a monetary profit on your motor insurance policy.
Check your no claim bonus
Last but not the least, you must always check to see whether or not your insurance provider has calculated your no claim bonus (NCB) properly. The NCB is a discount you are entitled to if you do not make car insurance claims. You can lower the premium or get some additional covers at the same cost once the discount is applied. This is an easy and effective way to save money on car insurance.
In a nutshell
You can successfully lower your car insurance expenses by following the tips and tricks mentioned above. Do not buy the first policy that you come across. Rather, do some research, run a comparison and also read through the policy documents. These steps will help you to find the highest possible cover at the best possible rates.