Who does not want to pay less for an insurance, car or otherwise? It is very much possible to keep your car insurance premiums within control. Here are five great tips to save money on your car insurance which can drastically impact your personal finance for good! Let us see how.
First of all, you have to understand the basic difference between a car insurance and other insurance products like health insurance or life insurance. A car insurance is mandatory; the rest are not. If you are in good health you may opt for not taking a health insurance, or pay less premiums to have less sum assured. Nevertheless, if you own and drive a car, you have to go for a car insurance. Driving a car without a valid car insurance is a traffic offense for which the police may charge you a fine. So you have to take your car insurance; but with some basic ideas, you can drastically cut down car insurance expenses, while still enjoying all the benefits. How?
Tips to save on Car Insurance Premium
Keep your car simple to reduce car insurance premiums
Simplicity pays off. A wise man will not over-decorate his car by adding a lot of things that you could otherwise avoid. A lot of decoration means a drastic increase in the net asset value of your car; this will push up the premium amounts in turn. Younger people often have a tendency to go for attractive but expensive car décors; refrain from that practice. Be frugal. Remember, all you need is to listen to music in your car, for which a basic music system is sufficient. You are not going to make your car a disco, are you? Then why go for an expensive car stereo and push the premiums up to the sky?
Stick to one company to save on car insurance premiums
Sticking to one car insurance company is a good idea to keep your car insurance premiums under control. Sometimes, insurance companies pay loyalty bonuses. Therefore, once you have taken your car insurance under a particular company, there is no need to change it at all unless the other company asks for a notably less premium. Stay insured for longer time periods to have less premiums for your car insurance.
Claim small amounts to keep your car insurance premium under control
Often, people refrain from submitting claims for smaller expenses. If the car repairing after an accident costs only a few hundred or thousand rupees, most people do not go for it and postpones their claim. They think they are saving it for bigger expenses that might incur in future. How justified are they? Well, finance gurus think they are not! Claiming bigger amounts increases car insurance premium amount for the coming years. While it is a good plan to keep making smaller claims (after all, the insurance has been done to make claims), avoid claiming bigger amounts. Do not call your insurance agent right away if the garage comes up with a colossal bill; think about the increased premiums during insurance renewal next year.
Buying old cars is good to save on car insurance premiums
This is a really handy and frugal tool to save on your car insurance premiums. Yes, buy a pre owned car. The entire world is getting frugal these days with soaring inflation and recession; being frugal is now the in thing instead of making expensive purchases. Yes, those days are gone when driving an used car was not cool. The asset value of an used car will be much less than that of a brand new car. Accordingly, the sum insured and the premium amount will be less as well. Cars that are just a couple of years old perform as nicely as new cars, but they can help you save a lot with your car insurance premium.
What you do, can make a difference in car insurance premiums
What do you do? Yes, that is important because it is seen that most insurance companies prefer certain occupations to others. If you have a government or public sector job which is more stable, the premiums are often lower. On the other hand, if you are associated with a really volatile sector, it is tough luck. In that case, do you have a family member who has a more secured job? What about your spouse? If your spouse has a job that the insurance companies will love, it is a good idea to purchase the car in his or her name in order to keep the insurance premiums less.