Insurance does makes us feel safer when we drive our car on the road, isn’t it? We know that if something bad happens on the road, the damages will get covered. A car insurance policy not only protects the car owner from the losses incurred during an accident, but also provides protection to the other party. This is the reason why it is so essential to purchase car insurance policy.
In the Indian market, there is no shortage of insurance companies, and you can compare their policies. There are many online sites available for the same. But, can you bring down the premium of your car insurance? Is it possible to lower down car insurance premium? Yes, it is possible. There are some tips which you can follow in order to bring down the cost of your car insurance premium.
Tips to lower down your car insurance premium
- Set higher deductibles
So, what is a deductible? Well, it is the amount of money you are willing to shell out in the event of a claim. For example, if the deductible se by you for your car was around INR 5,000, then it means you are agreeing to dole out INR 5,000 from your pocket to cover the damages; and the rest amount will be paid by the insurance company. So, when you go for higher deductibles, the premium of your car insurance gets reduced. In this way, you can keep your insurance cost low.
- Add safety and security features
In the present time, there are plenty of safety and security features available that can make your car more advanced. Security features like anti-theft device, alarm system, engine immobilizer, etc. make it difficult for the car thieves to steal your vehicle. Likewise, ABS (anti lock braking system), EBD (electronic brake distribution), air bags, etc. add more safety to your car, which means the car is less likely to get involved in an accident.
Nowadays, most of the cars come equipped with these features. However, you can also get these features installed from the market. Insurance companies provide more discounts on your car insurance premiums.
- Complete a driving course
In India, it is easier to get a driving license in comparison to the western countries. When you enrol to a defensive driving course and go through it, you become a more responsible driver on the road. You get complete training regarding the driving rules you need to follow on the road and highways. Car insurance companies may offer you some discount on this ground.
- Park your car in a covered garage
The place where you park your car on regular basis also matters in determining the premium amount of your car insurance policy. If you have a garage in your property, it can definitely help you get discounts on your car insurance premiums. After all, it is easy to steal or damage a car parked on the street. On the other hand, cars parked inside a residential property are less likely to suffer any kind of damage.
- Compare the quotes
Like it was mentioned above, there is no dearth of car insurance companies in the Indian market. In order to know which company is offering the best rate, you have to compare several car insurance quotes. You can make use of online car insurance comparison tools, which can provide you a better idea of the finer details. When you compare the premiums, make sure there are no hidden charges which you are not aware of.
- Reduce coverage on used cars
If your car is more than four or five years old, or you are buying an old car, it is better to opt for the basic package rather than going for zero debt (nil debt) car insurance policy. Purchasing a nil debt car insurance policy for an old car is not a wise decision; it can prove to be quite expensive for you. Likewise, if you are a skilled and experienced driver then also you should go for the basic car insurance policy, as it would attract lower premiums.
- Maintain good credit history
Yes, your credit score does play a role in determining the premium of your car insurance policy. Researches show that people with healthy credit score are more responsible with their car as well, which means they make fewer claims. For this reason, it is important to check your credit score from time to time.
So, those were some of the easy and effective tips for lowering down the premiums of your car insurance policy. It all boils down to how smartly you buy an insurance policy, and how responsibly you drive on the road. Keep the above mentioned tips in mind, and you will surely end up purchasing the best option.