Top tips to cut the cost of car insurance renewal
Top tips to cut the cost of car insurance renewal 16thAugust 2021
If you are a car owner, it is mandatory to have valid car insurance before driving on roads. Purchasing a one-time car insurance policy is insufficient since the annual renewal is equally important. As a responsible car owner and a policyholder, you are accountable to keep track of your car insurance's renewal.
To save money on premiums, many car owners choose the basic insurance plan with minimum benefits. This, in fact, during an unfortunate incident, gives more trouble than any advantage to them. However, there are better ways to reduce the cost of insurance without sacrificing good coverage and features.
To help you with that, we've put down some tips for you to save money on your next car insurance renewal:
1. Always compare:
There are more than a dozen companies out there that offer car insurance. Compare them and understand the clauses of each. Doing full-proof research work is essential to draw maximum benefits from your car insurance plan. You may also do an online evaluation of insurance companies to assist you in selecting the most economical coverage.
2. Opt for online mode:
Purchasing and renewing car insurance online is more economical than the traditional offline method. A vehicle insurance company's overall operational costs reduce when it operates online as it eliminates the funds that go into a mediator agent, paperwork, and other factors. Moreover, car insurance companies believe that online customers are more aware and offer some discounts.
3. Look out for deductibles:
Almost all automobile insurance policies include deductibles. It is the percentage of the claim amount that the automobile owner agrees to pay if a claim is filed due to damage to their car. By agreeing to pay a portion of the claim amount, you lessen your motor insurer's liabilities, and hence you get the car insurance at a more economical rate.
4. Save using your No-Claim Bonus (NCB):
You are eligible to earn a No-Claim Bonus if you do not file any claims during the policy year. The discount rises after each subsequent policy year (for a total of five years). At the time of renewing your car insurance, keep the NCB bonus offer in your mind. You may utilise this to get a reduction on your renewal premium.
5. Always renew your policy before it lapses:
Always ensure you renew car insurance annually on time. If you let the claim expire, it will make the insurance company consider you as an irresponsible person. In addition, the company has the authority to deny you any discounts or additional advantages at the time of renewal. It may even cost you the No-Claim Bonus.
6. Go for long-term insurance policies:
Various insurance companies provide attractive discounts, particularly on long-term vehicle insurance policies. Long-term vehicle insurance plans lower administrative expenses, and these savings are passed on to policyholders in the form of incentives and discounts.
On a conclusive note, insurance renewal is an important exercise that no policyholder can give a miss. So getting preliminary information about renewal tips will be beneficial to maintain a positive track record. So follow the above tips and save some amount on your next car insurance renewal.