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Car Insurance up for Renewal? Check out these five Money Saving Tips!

Car Insurance up for Renewal

Is it time to renew your car insurance online? Make use of the tips listed here to find the best premium that offers maximum coverage with several added benefits.

“Car Insurance” is often a big headache for vehicle owners. Most owners aren’t bothered by it, until it’s time for renewal. And when the time comes to pay the premium, they just choose the first option available to them, without considering the available features and benefits. This not only ends up being expensive but fails to provide them with the needed coverage.

Here, in this article, you can find the top five money saving tips for car insurance renewals. What more these pointers also help you enjoy added benefits, all for the same price. Don’t renew your car insurance before checking out these valuable tips. Buckle up and let’s start saving!

  1. Compare Different Policies

This one can’t be stressed enough. The first and crucial step in online car insurance renewal is to compare your existing insurance plan with all the available choices.

With easy to use online car insurance premium calculators, there’s no excuse to skip doing this. All you have to do is input a few key details about your vehicle like the model, the make and year of purchase to find a comprehensive list of all the available policies.

Glance through the features, benefits, and costs of different plans to pick the best one that suits your requirements.

  1. Always read the Fine Print

You may come across a policy package that offers lucrative deals and discounts. Make sure that you understand the fine print to find the hidden clauses. As the saying goes, “Better safe than sorry,” instead of ending up feeling cheated and disappointed after you purchase the policy, ensure that you spend a few extra minutes, minutely going through the details.

If you aren’t clear about any section of your policy, you may write to insurer for clarification, or call the customer service centre.

  1. Calculate your Vehicle’s accurate value

It’s time to crunch some numbers. Whip out your pocket calculators to save shelling out huge premiums. Once you know the current value of your car, you can then have the upper hand in negotiating with the IDV of the vehicle.

Let’s look at this with an example. Let’s assume that you have purchased your car for an initial value of 6 lakhs and the cost has depreciated by 50% in two years. So, when you renew the policy after two years, you must pay the premium for the current value (3 lakhs) and not the initial cost of (6 lakhs).

  1. No Claim Bonus

Do you remember your school years, when you used to earn extra marks for being a polite and obedient student in class? The “No Claim Bonus” is similar to that. Here, the insurance company acts as the teacher and rewards you for being a good driver and for taking proper care of your vehicle.

Don’t forget to claim this bonus as soon as your policy matures, as it can reduce the premium for subsequent payments by up to 50%.

  1. Higher Deductibles

Financial experts state that by claiming higher deductibles, you can reduce premiums that you pay later on. Voluntary Deductible is an amount that you pay at the time of the insurance claim. When you pay a higher amount for this, it equates to additional premium discounts over time.

 “Four-Wheeler Insurance” is a necessary. There’s no way you can skip it. Make use of the points listed here to reduce your premium burden and save a few bucks in the process.

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