No matter which product we buy, ‘discount’ is one term that always proves to be a deal-maker. The same applies to car insurance as well. As the cost of insurance is rising every year and the insurance market is becoming more competitive; you need to stick to the word ‘discount’ in the best possible ways.
Regarding car insurance, you barely hear the term ‘discount’ being used directly but there are a few tried and tested strategies that are certain to put your car insurance rates in control. These remain highly valid in 2020 as well. Without further ado; we share some of those killer strategies with you here. Stay hooked!
- Renew the car policy on time
If you have an existing policy, the best discount you can get is by renewing your policy on time. Often, we tend to procrastinate it to the eleventh hour and even push it into the grace period. If you go beyond the grace period, your Car Insurance Policy will lapse and your car will go uninsured. This is highly risky. Moreover, if you had not made any claim in the past year, you are entitled to a No Claim Bonus that can amount to a significant discount to your policy premium amount. Losing on this discount is the biggest loss. Hence, you must be extra cautious and try to renew your policy at least seven days before the premium due date.
- Develop good driving habits
You may not realize it but your driving habits are carefully noted and recorded by the insurance company. If you are a careful and traffic laws obeying driver with barely a ticket and penalty against your name; you can find yourself rewarded by the insurance company with a lower premium. Hence, it pays to be a responsible driver and the factor is completely within your control.
- Pay for small claims
We have already talked about the No Claim Bonus that you receive for not making any claim during the insurance term. You can find the amount that you will become eligible to receive under this reward. The amount can be the deciding factor for you to surmise if you need to claim for a particular car repair or not. If the repair cost is below the NCB amount; you should bear the repair cost yourself but if it is more; then it’s wise to make a claim.
- Set the right IDV
IDV or the Insured Declared Value is the approximate market value of the car at the time of purchase of the car insurance. It’s the maximum coverage that you can get from the insurance company. IDV affects your premium amount directly. Hence, it is critical that you set the right value for it. A higher IDV equates to paying a higher premium for no reason while a lower IDV leaves you without adequate protection and can end up being a more costly affair for you.
- Compare and buy car insurance online
Buying car insurance online always proves cheaper as most insurance companies give you the commission amount of the insurance agent as a discount. Moreover, there are plenty of policy comparison sites online that even sends you the quotes on your email. By utilizing this free tool and just a little research; you can procure the maximum benefits and coverage at the lowest possible rate. It proves truly advantageous for you.
- Find out about multiple car insurance
In case you have multiple cars in your home or have a close group of friends who are car owners; try to find out about group insurance. Getting multiple cars insured under the same plan earns you a significant discount without any compromise on your benefits. It is a smart move to go for.
- Choose your deductible amount wisely
A deductible is an amount that you must pay for any claim amount before the insurance company enters the picture and takes care of the remaining amount. A higher deductible means a lower premium cost. But it also means a high payout from your pocket at the time of making a claim. Hence, you must think upon it carefully and choose that highest amount as the deductible which you can afford without feeling any pressure.
- Buy a car considered safe
Each car is given a safety rating based on factors like the likelihood of theft, repair cost, safety record, etc. A car with a high safety rating is not only safe to drive but it also means a lower premium for your insurance policy.
- Install security features
Installing security features in your car like the anti-theft device, GPS tracking system, etc. not only makes your car secure but lowers your premium amount significantly.
- Pay your premium in one go
There is a processing charge included in your premium amount. The charge increases as many times as you are paying the premium amount in any given year. Paying the premium amount in full at one go saves you plenty of money.
Just a few smart moves and thoughtfulness can make car insurance a highly affordable option despite the rising cost of the policy.