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Tips to save on the car insurance premium

Posted by Royal Sundaram on 01 Sep 2016


A car is said to be a treasured possession and one of the costlier purchase that one might make. Most car owners buy an insurance policy just because it is made mandatory by law. However, one should look at car insurance as a financial shield that saves you from the brunt of costly repairs incurred due to accidental damages caused to the car.

With several covers available with a comprehensive insurance plan, purchasing a policy without looking into the details can be expensive. Thus, it is important to review car insurance quotes provided by different providers in order to save money on the insurance policy. Still, if you aim to shrink the car insurance premium further, here are a few tips that will prove to be handy:

Maintain a safe driving record: If you feel the urge to go fast and have a frequent record of violating the traffic rules, you are at the risk of paying higher premium. Greater the risk, higher will be the premium charged by insurance providers. Keep the records clean in order to minimize the premium.

Know your needs: There are two types of car insurance coverage options, third party liability cover and comprehensive cover.

Third party liability covers damages and injuries caused to another party due to accident. There is no protection offered to the owner’s car. In India, it is mandatory to have this type of policy. A comprehensive policy on the other hand offers cover to third-party as well as the owner’s car. So if your car is new, it is advisable to take a comprehensive plan. However, if it is relatively old, you can opt for third party insurance policy.

 Fill the Car details carefully: Before you invest in buying your dream car, check for car insurance rates for the model you are wanting to buy. The car you drive creates a huge impact on your premium rates. Small and moderately priced cars have cheaper premium than SUVs and expensive cars.

Better your credit score: Your credit score is the most crucial factor when insurance companies decide on how much to charge. Make sure you clear off all your debts before availing a car insurance policy. Keep credit balances below the limits and do not apply for multiple credit cards at the time of purchasing a policy.

Take advantage of discounts: Consider buying the policy online to avail various deals and discounts. Making an online purchase will also help you in cutting out on the unnecessary expenses such as agent’s commission. Furthermore, if you do not make any claims for a year, you will be given benefit in the form of “no claim bonus” on the premium for the upcoming policy year.

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