Insurance is a necessary expense but there are several ways through which you can lower down the cost of the same. Different insurers work out the insurance companies through a different set of factors. There is never a year-end clearance sale on the premiums. However, if you are looking for ways to lower car insurance costs, here are some secrets behind it.
Shop Around
With the varying premium prices offered by different companies, it is best to get at least three price quotes before finalizing one. However, do not just go by price alone. Check with friends and family, go through online recommendations and check the financial health of the companies with different companies. This will help you in getting the maximum value for the money insurance policy for your car.
Pay all in one go
When you pay for your policy all at once, it often tends to be cheaper. According to research, monthly payments of the premium can increase the prices by about 16% as compared to complete one-off payments.
Bundle up the Insurance policies
Policies that are purchased from the same insurer and grouped together tend to be cheaper than separate policies from separate companies. Bundle your life insurance or homeowner’s policy with your auto insurance policy for the best prices. You can even choose an umbrella policy that protects you from all the liabilities.
Renewing the policy before lapsing
It is best to renew your auto insurance policy before the due date. This will negate the need for a fresh vehicle inspection and reduce the chances of an increase in premium amount. Policy lapse also results in the loss of all the accumulated NCB benefits.
Accumulation of No Claim Bonus
If there are no claims made in the previous policy years, you are then eligible for the No Claim Bonus Benefit. This is a reward offered by the insurance companies for not making any sort of claims. This benefit can be availed on the premium payable for the damage cover. It can be in the form of a discount of 20% to 50% depending upon the duration of no claim.
Transfer of the No Claim Bonus
In case you are replacing your old car with a new car, do remember to carry forward the No claim Bonus from your old car. After all, this benefit is associated with the policyholder rather than the vehicle. Thus, when getting a new car, this NCB benefit can be transferred to the new car. Inform the insurance company regarding the transfer and get your NCB certificate. This will further help you in getting a reduced premium on your new car.
Only get the coverage you need
Always choose the cover that you need without any unnecessary add ons that will increase the cost. Choose the ones that best help in protecting your car so as to facilitate a reduced premium.
Conclusion
An auto insurance policy is mandatory for mental and financial peace regarding securing your vehicle against any portable perils as well as for third-party liabilities. Choose the most affordable and cheapest car insurance by keeping the above key pointers in your mind. Take further opinions from our financial experts who will help you in choosing the best insurance for your car.
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