8 WAYS YOU CAN SAVE ON YOUR CAR INSURANCE PREMIUM

Car insurance is not only a legal requirement but also a financial cushion if your beloved car gets damaged due to natural or man-made disasters. Premiums are an important consideration whether you buy car insurance online or offline. It can feel like a burden, especially if you are tight on budget. However, several practical ways exist to make big savings on your car insurance premium. What are they? Let’s find out.

1. Carefully Decide Your Car’s Model

Did you know your car's model directly impacts the premiums you need to pay for the vehicle? Whether you purchase third-party car insurance or a comprehensive policy, your car's model plays a vital role in calculating the premium amount.

Vehicles with higher engine cubic capacities (CC) command higher premiums than lower ones. This is because cars with more powerful engines are subject to higher speeds and increased risks of accidents. Therefore, if you don't require a higher CC vehicle, it makes sense not to opt for it to save on premiums. Additionally, if you wish to purchase a new car, assess its car rating system and ask your insurer on its impact on your plan.

2. Opt for Pay-as-you-drive Insurance

Opting for pay-as-you-drive insurance is an effective way to mitigate their car insurance expenses. This innovative approach tailors insurance premiums to match individual driving habits. In this insurance, you pay premiums based on the number of kilometres your car covers during the policy period rather than a flat fee.

Pay-as-you-drive plans have different slabs, and premiums are calculated based on them. If you don't drive your car often, opting for this insurance plan can help you save big. Here, the insurance company fits a tracking device based on smart technology in your car to determine the distance travelled. This device also records your driving behaviour and rewards you for responsible habits through lower premiums.

3. Avoid Purchasing Every Add-on Cover

When it comes to car insurance online or offline, it can be pretty tempting to add every available coverage option for complete protection. However, doing so can significantly inflate your insurance premiums. While some additional covers may be essential, such as engine protection cover and depreciation cover, others might be redundant or provide coverage that you're unlikely to need. To determine your needs, it's crucial to carefully evaluate each add-on cover with your circumstances and driving habits.

Prioritise the most essential coverages while being mindful of potential over-insurance. You can balance adequate protection and affordable premiums by choosing the add-on covers that meet your requirements. This aids you to optimise your insurance policy to suit your needs and budget.

4. Don’t Make Small Claims

Making small claims to save on car insurance premiums might result in savings upfront, but it can ultimately prove costly. Insurance companies tend to raise premiums for policyholders who make frequent claims, regardless of their size. Therefore, making small claims can lead to an increase in premiums over time, eroding short-term savings.

Additionally, you could label yourself as a high-risk driver in the eyes of your insurer if you file multiple small claims. This further drives up your premiums and makes it challenging to find affordable coverage in the future. Also, numerous small claims can result in increased paperwork and are time-consuming.

5. Enhance Voluntary Deductions

By opting for higher voluntary deductions, you essentially agree to pay a larger portion of the repair costs in the event of an accident before insurance coverage kicks in. This arrangement empowers you to take more control over your insurance expenses and encourages cautious driving habits.

When you know you'll have to spend significantly from your pocket, you tend to drive more cautiously, thereby reducing the likelihood of accidents. This reduction in risk translates to lower overall claims for insurance companies, which they reward with lower premiums. On the other hand, if you opt for zero voluntary deduction, you need to shell out higher premiums.

6. Avoid Needless Modifications

Car modifications can significantly impact insurance premiums. Needless modifications entail many alterations that deviate from the manufacturer's intended design and purpose. These include cosmetic enhancements, performance upgrades, and aftermarket additions. While such changes may enhance your vehicle's aesthetics, they often raise insurance premiums.

Also, avoiding such modifications helps bring down insurance premiums and preserves the vehicle's resale value. It also ensures compliance with legal regulations. Many modifications, especially those related to performance enhancements or alterations to safety features, can compromise your car's resale value and may even void warranties.

7. Install Security Features in Your Car

Installing security features in your car is not only a smart way to protect your vehicle from thefts and accidents but can also lead to big savings on premiums. Insurers provide discounts for vehicles equipped with advanced security measures because they are less likely to be stolen or involved in accidents.

Installing features such as alarms, immobilisers, and tracking devices not only enhances the safety of your vehicle but also demonstrates to insurers that you are taking steps to reduce risks. Also modern security technologies also provide valuable data for insurers. These devices enable insurers to analyse your driving behaviour, such as speed, distance travelled, and braking patterns and offer personalised insurance premiums based on your risk profile.

8. Compare Car Insurance Online

Comparing car insurance online offers various advantages. A significant advantage among them is the potential to reduce premiums significantly. The online marketplace for insurance is highly competitive. Several insurance providers are vying for customers' attention. This competition often translates into lower rates and attractive deals.

Also, online comparison tools give you access to a wealth of information. It lets you compare quotes and evaluate coverage options and discounts from several providers in minutes.

In Conclusion

As evident, it's quite easy to bring down your car insurance premiums by following the above steps. At the same time, some of these methods also instil responsible driving behaviour, further enhancing your and car's safety.

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2024-02-20T13:46:41Z dg43tfdfdgfd