6 Tips To Reduce Your Car Insurance Premium

By BankBazaar | July 8, 2016

6 tips to lower Car Insurance premium

Car Insurance is a must. Not only has the government made it compulsory for everyone to have their car insured, the traffic and road conditions these days sort of demand it too! Now, Car Insurance can be expensive but are there ways to reduce your Car Insurance premium? There certainly are. We’re going to tell you 6 ways in which you can reduce your Car Insurance premium.

  1. Pay more out-of-pocket on claims

One way to lower your Car Insurance premium is to increase the quantum of voluntary deductible – what’s that, you ask? Well, it’s one the simplest methods to reduce your Car Insurance premium. What this means is that you increase the amount of money you are willing to pay from your pocket in case of repairs and claims. When you take or renew a Car Insurance Policy, you have the option to change the amount of voluntary deductible. However, be careful when deciding this amount. It shouldn’t be a burden on your budget in case of a claim. Going overboard will put a heavy strain on your pocket.

  1. Small repairs? Don’t claim insurance

Do you know what it means when you don’t make claims on your Car Insurance? You become eligible for a no-claims-bonus. Did you know that this can lower your insurance by as much as 50 percent? On the other hand, individuals who make several claims a year will end up having to pay a higher premium. So, to keep your premium low, try paying for small repairs from your pocket as far as possible. But keep an eye on how much you spend on repairs. At the end of the day, the cost of these small repairs shouldn’t exceed the savings you get from your NCB!

  1. Transfer your No Claims Bonus

Talking about your no claim bonus, remember it’s associated with you as a policy holder and not with your car. What does this mean? You can transfer your NCB if you sell your old car and buy a new one. Once you get a new car, all you need to do is tell your policy holder that you wish to transfer your NCB. Your policy holder will issue a certificate stating the details of the new car. It’s that simple!

Do you know you can reserve your NCB for three years? So, if you are not planning to buy a car immediately after selling your old car, well the NCB will still be around, for some time at least.

  1. Do your research before getting your insurance

A good way to make use of the internet is to search and compare Car Insurance products online. All it takes is a few clicks and swipes and you will be spoilt for choice. Compare premiums and perks, and pick the one that suits your needs the most. Other perks of getting Car Insurance online is the simplicity and transparency of the process. It’s easier to fill forms and you can peruse the details without the background music of a salesperson making an emphatic pitch.

  1. Get anti-theft devices

Taking steps to protect your car will make the insurer very happy. Any measure taken by you to protect your car will boost the confidence of the policy provider. This, in turn, could translate into a good discount i.e. a smaller premium.

  1. Be Honest

Yes, be honest when you fill your Car Insurance forms. Other than your personal information, you will be asked to provide details on how you use your car. You might be tempted to present a better-than-expected account of how well you treat your car. Well, it’s not easy to fool the insurance company. One look under the hood of your car and the truth will be revealed. Be honest about your driving habits. Nothing to sweat about if you take good care of your car. In fact, a well-maintained car might even win you a discount on the premium.

Additional Reading: Car Insurance Terms You Must Know

Follow these six simple tricks to get a discount on your Car Insurance plan. The  results will speak for themselves.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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