Home Business Insights & Advice Seven proven tips to get the cheapest car insurance policy

Seven proven tips to get the cheapest car insurance policy

by Sponsored Content
22nd Nov 18 10:31 am

You can get the best deal for your car insurance when you follow the simple tips given in this article. This will help you to save lots of money and also make it convenient for you to process the transaction in quick time. There are many companies offering different plans in the market and you need to make the right choice to save money in future. Many plans come with unnecessary features that add up to the overall cost of insurance and you can avoid them by being careful about the add-on features. In the same manner, you can even choose to buy insurance for long term as this will get you some discounts and you will also be able to lock the premium for many years. In this way, you can get to pay less premium even after you have made any claims in between the tenure. Let us look into these methods in a detailed manner.

Choose third party car insurance

There is no need to buy comprehensive car insurance in every situation. Remember that coverage for your vehicle is needed only when it is very expensive or when the vehicle is still new. You should understand that cars older than 8 years do not have much value left in terms of IDV and choosing comprehensive insurance is not a good idea in this situation. On the other hand, you can select the mandatory third party cover and get to save lots of money spent on your vehicle insurance. The third party car insurance online is the cheapest deal you can get in the market and you will be able to save lots of money in the long run with such offers. This is also a good option when you are buying a used vehicle in the market. The cost difference between third party cover and comprehensive cover will be very huge and you can easily choose the cheap third party protection and save money in future.

Avoid unnecessary add-ons with comprehensive insurance policy

The comprehensive insurance plans offer additional protection when compared to third party car insurance and you can even enhance the coverage by choosing add-on covers. However, choosing them comes with additional cost and you need to pay extra premium for such features. You can check this by using the car insurance premium calculator from any reputed source. In this regard, you should just not add any cover that is available and analyse whether it suits your future requirements.

         The breakdown assistance cover can be easily avoided when you are riding the vehicle in city limits. This is because you can easily get assistance from local mechanics in most parts of the city and avoiding the breakdown assistance cover will cut down on your premium expenses.

         Similarly, you can avoid cover for accessories when they are not expensive and this will further reduce your overall premium paid for the policy. This makes sense when the accessories are installed inside the vehicle and it will anyway be safe in most cases.

         There is no need to add zero depreciation cover when your vehicle is already old and this cover will not make much difference to the overall IDV of your car. In this manner, choosing the add-on covers wisely will help you to get cheap car insurance in the long run.

Increase the voluntary excess

Many people are not aware of this feature and this can help you to cut down the premium on any policy by a huge margin. There is no need to compromise on the third party cover when you opt for this feature and you can easily get comprehensive cover at cheap rates. Whenever any damage happens to your car in future, the insurance company will pay for the damage and this means that they take all the risk in that situation. However, you can also take some part of the risk and choose to pay for a certain percentage of the damage from your pocket. This concept is popularly termed voluntary excess in terms of vehicle insurance. When you opt for a higher voluntary excess, the insurance company will automatically reduce the premium as their risk in future reduces by that margin. It is always a good idea to increase the voluntary excess for old vehicles as you can get cheap premium rates in this manner and even the expenses for repairing them will be less in the long run. You can even consult your insurance advisor in this regard and choose the optimum voluntary excess suited for your situation.

Choose multi-year plans to get discounts

It is now possible to get multi-year plans for car insurance. Earlier, you had to renew the plans every year and the premium changed every year depending on the claims made during the previous year. However, the recent guidelines by IRDAI has made it mandatory for car owners to choose three year insurance for the first time and thereafter, the consumers can renew it as per their convenience.

You can get in touch with your insurance service provider and choose the multi-year car insurance online from reputed companies. The main advantage you get with this option is that the premium gets locked for the entire tenure of the plan. In fact, you will be paying advance premium for the entire term at once and this will mean that there is no chance of increase in premium even if you make any claims in between the tenure of the policy.

Apart from that, the insurance companies are also offering good discount for such plans as the rate of renewal in our country is very less. In this way, the companies can get to sell policies at once for many years and they will have less paperwork to do on an annual basis. The insurance companies also get advance premium that will help them in many ways and they offer discounts to attract customers towards such plans.

Always compare different plans

The number of companies offering vehicle insurance is growing every year and you can get many plans from even a single company. In this regard, you should always make it a point to compare different plans in the market so that you can pick the best option suited for your car.

The easy way to compare different plans is to use the services of online insurance aggregators. They offer detailed information about various plans and you can even filter the plans based on your individual needs. In this way, it becomes easy to compare the features of various plans at one place.

The portals can even provide you with the quotes of various plans and you will have complete idea about the cost of insurance in this manner. These portals also have car insurance premium calculator and you can use it to know the premium of different plans.

The best part about using the services of such online brokers is that you need not pay any fees for them and everything comes free of cost. These brokers get commission from the insurance companies whenever they sell policy on behalf of the insurance companies.

Buy insurance online to save money

You will be glad to know that you can even buy insurance from the online brokers and get to save lots of money. To begin with, you need to understand that buying insurance through agents or directly with the insurance companies can cost you more when compared to buying the policy online.

The main reason for this is that the insurance companies prefer to deal online as this saves lot of manpower required to process the applications. In this way, they can reach out to customers without any geographical restrictions.

You can provide your basic details and buy the policy online by making the online payment. The insurance service providers will process the application and complete the transaction within few days. After that, you can get the policy document delivered to your mail address.

Avoid claims for minor issues

You need to understand that not making any claims for the entire tenure can get you good discounts when you go for policy renewal. This is termed no claim bonus and you can reduce the premium by a huge margin when you have carried no claim status for many years. In this regard, you must try your best to avoid claims by driving safely. However, accidents can still happen and you may have to make claims for the damages in that situation. In this case, see if the damage is minor and avoid making claims in that situation. Remember that making small claims will also result in losing the no claim status and you will lose the discount when you go for policy renewal. On the other hand, the premium can increase by some margin when you have made any claim in the previous tenure. Considering these factors, it makes sense to avoid claims for minor accidents so that you can get cheap car insurance in future.

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