How to Save Money on Car Insurance

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

How to Save Money on Car Insurance

Buying a car is one of the most important decisions of your life and you must do everything to secure it. The first step you need to take is getting a good car insurance policy. But they can be expensive. With companies coming up with a plethora of insurance policies, you might get caught up and spend money you cannot afford.

Tips To Save Money on Car Insurance

To solve your problems and help you find a policy within your budget, the following tips will come handy.

1. Compare Different Car Insurance Policies

Before deciding to buy an insurance policy, compare car policies, and plans different companies offer. You will be surprised to see that one company will provide the same services as another but at different prices. There are several online sites that help you compare policies just in a few clicks.

In addition, be aware of the plan you choose. At times, a car insurance policy might offer perks you don't really need. Hence, it is best to double-check the services and then proceed further.

2. Check Your Credit Card History

Often car insurance companies check your credit card records and offer discounts. Having a good credit card history will help you get extra offers and buy insurance at a better price. There's a reason why companies give you discounts based on your relation with your credit card. Studies show that people who have better credit card history are better at handling their money and make lesser claims.

3. Avail Advantage Of Having Low Mileage

Insurance companies offer discounts on cars that cover less distance than the standard values. It means that if you don't ride your car very often, it will run less than cars that are used every day. In case your car falls under this category, you will be eligible for good discounts on your auto insurance.

Most of the people don't really need a car every day. They either avail of public transport or prefer walking and cycling. Hence, there's always a probability of saving money by simply using your car less often.

4. Try To Go For Smaller Cars

This might sound irrelevant but it's true. The larger and heavier a car is, the greater amount of money you have to invest in your insurance. For instance, the latest model of Toyota Fortuner will always require greater insurance coverage than an average Maruti Suzuki.

Fancy sports cars are equipped with special functions and posh interiors which you don't really need for everyday use. If you think about it, a small hatchback is more convenient to roam around the city. And it will also save a lot of your money from going to auto insurance. Moreover, it's smaller cars are more eco-friendly as well. It's a win-win situation from every aspect.

5. Be Cautious While Driving

No, this advice is not stupid. A car insurance policy comes into action only when you damage your car or it is stolen. Rash and drunk driving are the biggest causes of car accidents and deaths in the world. If you are cautious while driving, there will be negligible chances of damage and you won't have to make any claims.

At the end of the day, safe driving will not only make your car last long but also reduce your car insurance costs.

6. Actively Look For Discounts

Just like clothing brands, insurance companies too offer discounts throughout the year. The discounts generally increase during the festive season and us the best time to buy auto insurance. For instance, many insurance companies offer discounts if you pay online. So, if you can try to make your payment via your debit card or through Net banking.

Some insurance companies provide offers on certain car models too. If you happen to buy a car from the discount range, you can avail your offer.

Takeaway

Car insurance policies can be costly but with the right amount of knowledge, you can save a substantial amount of money. Before buying a car, educate yourself about insurance policies and ask your friends who have had their experience with cars. Talk to your agent before opting for a policy and gauge the pros of that plan. These little steps will save your wealth and enable you to make a wise decision.

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Written by Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.