How to Save Money on Your Car Insurance Premiums?

How to Save Money on Your Car Insurance Premiums?

To have a car is a dream of many and everyone in life desires for the same. Some people purchase it for luxury and some buy a car out of necessity. When it comes to buying car insurance, nobody gets to choose. Everyone needs to have a motor insurance policy for their cars whether you prefer if or not. Under the Motor Vehicles Act, 1988,  the simple reason behind this is mandatory requirement for all car owners to buy car insurance. With at least a third party covering their four wheelers. Car insurance is an unnecessary expense considered by many people. One of the widest decisions for buying the best car insurance policy that can be taken for the betterment of the vehicle is contrary to belief. You should be assured if you have an issue of money because all the motor insurance policies are not expensive. With the help of some easy tips the cost of a car insurance policy can be reduced substantially. If you want to know what can affect your car insurance premium then here are some tips.

Factors affecting car Insurance Premiums
With the help of several factors the premium for a car insurance policy is determined. The risk associated with your car there are some factors that help a motor insurer to judge. The higher a car insurance premium gets the greater the risk will be. Factors that affect car insurance premiums then take a look:

Make & Model of the car: The models of a car as well as expensive cars are a greater liability for an insurer. The cost of replacing or repairing its parts are higher in high-end cars or in luxury. The car insurance premiums are higher for high-end cars or luxury.

Age of the car: The more probability of giving troubles is older cars than the brand new cars. With an increase in the age of the car the car insurance premiums shoot increases.

The car insurance coverage type: The third party insurance comprehensive insurance provides greater coverage toa car as compared. The higher the cost of the car insurance as a result in the comprehensive case.

Capacity of the car engine: The insurer of the cars with greater capacity of engine pose a higher level of risk. With a higher engine capacity this is why the car insurance cost is more for cars.

History claim: By a motor insurer people who have a poor claim history are considered as a greater liability. The car owner besides not making any claims in the past year which reduces their car insurance premium helps the car owner to earn no claim bonus (NCB).You need to shell out more money if you have a poor claim history if you want to sell more money for car insurance premium.

Car Location: At certain places the probability of a car getting damaged is higher such as highways, with a higher record of crimes, populated dense cities, urban areas, etc. With a higher car insurance premium if you stay at a high-risk area you will be charged.

Modifications of car: There are chances of incurring a greater loss if there are any modifications made to a car in case the vehicle is damaged. Hence a higher car insurance premium is attracted when a car is modified.

There are some tips to save money on car insurance costs:

For older cars choose third party insurance: Car insurance can either be third party cover or comprehensive.  The comprehensive insurance also covers the cost of repairing the damages while the third party insurance covers only third party liabilities of the car owner. In addition to third party liabilities of the damages sustained by the car. It comes for a higher car insurance price given the wider coverage that comprehensive insurance offers. By opting for third party insurance you can reduce overall car insurance premium.

In your car install anti-theft devices: On the basis of the liability the cost of a car insurance policy is determined at the motor insurance company that a car possesses. The higher the insurance premium cost, the greater is the liability.

 

You should avoid unnecessary car modifications: With the added features a lot of people modify their cars to enhance the value of the car with increasing coverage of insurance. At a higher insurance price the wider insurance coverage comes.  For the best car insurance policy insurance company charges higher.

 

Car insurance premiums should be compared: In India several insurance companies of motors offer greater car insurance plans. At competitive prices with all of them offering impressive coverage it can really be difficult to choose the best car insurance among all. You must compare a car insurance policy to find the ideal one of your four wheeler.

 

Voluntary deductibles should be raised: In case a claim is raised it is the share of the claim amount that the car owner agrees to pay due to the damages caused to her/his car. You reduce the liability of your motor insurer by agreeing to pay a share of the claim amount. It offers car insurance as a result at a lower price.

 

Unnecessary Add-ons should be avoided: You get the option of adding add-on covers to your policy, when you decide to buy a comprehensive car insurance policy. On the payment of a higher premium add-on covers are meant to increase the coverage of the car insurance policy.

 

Minor claims should be avoided: You must avoid minor damages of your car for raising any claims, if you wish to reduce your car insurance premium. It can be estimated that the minor car damages are not very expensive to repair.

 

Policy lapses should be avoided: Every year as a car owner you need to renew your policy to ensure coverage insurance for your car. Before expiry if your car policy is not renewed is lapsed. At all times it is inevitable maintaining car insurance coverage, if you own a car.