A new car brings joy and adventures closer to you, yet comes with its share of responsibilities. They include periodic maintenance, repairs, denting works and more. Apart from them, insurance is one thing that often gets overlooked. Being a regulatory norm, it is purchased by all car owners but not much thought is put-in. This is where your insurance plan might start to leak money. This article has five ways that can help you cork that leaking money trap of car insurance plans.
#1 Purchasing the right policy
There are myriad options among which you can purchase. Not all will fit you right so you need to look for that one policy that checks all the right boxes, considering multiple plans will help you shortlist the right policy. Moreover, there are various factors to consider when comparing like scope, deductibles, additional benefits, etc. Thus, a thorough comparison will help you select the right policy, be it the initial purchase or car insurance renewal.
#2 Selecting adequate coverage
Whether you are a first-time buyer or an experienced one, buying the right car insurance plan is crucial. You have the option to select from comprehensive or third party car insurance. Both plans have different scope and selecting the one that fits right for you is important. For instance, a comprehensive insurance policy for a car that sits in your garage most times might be unnecessary, whereas a luxury vehicle with the same policy can break your bank due to its expensive repairs. Here’s when you need to decide which insurance policy is right for you. Moreover choosing the right set of add-ons can help you further prevent unnecessary spending on car insurance.
#3 Setting the right IDV
Many first-time buyers are unaware of this option where a comprehensive car insurance policy gives you the option to change the insured declared value or IDV. Often confused as resale value, it is the closest estimate of your car’s value after considering depreciation. IDV has no impact on your claim, but a direct impact on your premium. So, higher the IDV, higher will be your premium. But that shouldn’t make you set a lower IDV as it can leave you underinsured in the event of a total loss. So, analyse it right and set the correct IDV as it guarantees you coverage while not leaking money.
#4 Taking advantage of the no-claim bonus (NCB)
No-claim bonus is that component that substantially brings down the premiums during car insurance renewal. It is a concession in the own-damage component of your car insurance policy which forms the major part of comprehensive car insurance premiums. When you do not make any claim for an entire policy tenure, the renewal is benefited with NCB. Further, some insurance companies also have concessions for installing safety devices on their cars that further reduces the premium outflow.
#5 Renewal on time
Last but not the least, making sure you renew your policy on time can help you save some money. That being said, insurance companies also send reminders to ensure you do not miss that renewal date. So take full advantage and renew your policy in time to enjoy continued benefits for your car.
These five tips can help you save a considerable amount of insurance premium while giving your car the adequate required coverage. Make sure to use them to save a handful premium and enjoy those adventures in your car.
