Tips on How to Save Money on Car Insurance Policy

Written by Sharad Bajaj

Updated On Oct 14, 20232 min read

Let's save money on car insurance policy.

Car insurance is a wise decision to make in order to cushion yourself from unfriendly pocket liabilities which may occur at the time of an accident or theft or other mishap relating to your car. However, it can be expensive if you miss out on the readily available ways to save your money. With the correct knowledge it is possible to minimise your expenditure. Here are some tips on how to save money on your car insurance policy:

Compare Insurance Plans Before Buying One

The price of car insurance varies from every insurance provider to every policy. The quotes for the different policies would be available online, and it is very advisable to take advantage of this information by comparing different prices. When comparing different policies to each other, it is advantageous not only to compare the price but also other factors relating to the insurance provider which may impact your expenditure, such as claim settlement ratio.

Conduct Proper Research Before Purchasing a Car

Car insurance premiums are determined in large part by the price of the car. Further, they are impacted by factors such as how theft prone a car is, the costs of repair it would entail in case of an accident, etc. Thus, it is wise to keep the impact of these factors on car insurance in mind while determining which car to buy, as these factors will have a considerable impact on the premium that you would pay for insurance.

Maintain a Good Credit History

In some cases, the insurance provider will view your credit history and use it to determine the premium cost of the policy offered to you. If you have a good credit history with no financial debts, and paid credit card bills, it may positively impact the premium that you are offered. It is important to provide information that is true and accurate.

Install Anti-Theft Devices

Another way to save money on your car insurance policy is installing an anti-theft device that has been approved by ARAI (Automotive Research Authority of India). The reason for this is that theft is one of the key risk factors that insurance providers will view when determining the risk to your car, and by taking a proactive measure such as attaching an anti-theft device, you are bringing down the level of this risk. This is viewed positively by insurance providers and thus may result in a reduced premium.

Drive Cautiously and Gain No Claim Bonus

No Claim Bonus (NCB) refers to a discount applicable at the time of renewal which results from no claims made during the policy tenure. Therefore, by driving cautiously and avoiding accidents you bring down the risk of needing to raise a claim significantly, making yourself more likely to be eligible for a No Claim Bonus at the time of renewal of your policy. It is cumulative in nature and increases by 10% every year, saving you considerable amounts of money.

Takeaway

A car insurance policy that takes care of your needs and protects you from possible liabilities is an absolute must. However, with these tips in mind, you can ensure that you have considerable savings when purchasing it.

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.