Isn’t it surprising that we can spend hours shopping for just the right dress or spend months looking for the perfect car, and yet when the time comes to renew our car insurance, the decision is almost always instantaneous?
Very few of us realize the financial losses we incur by blindly renewing insurance coverage, especially given the amount of research we have at our fingertips. So let’s delve into some crucial tips that will make your next renewal extra-rewarding for you!
Research and Purchase online
We shop for almost everything under the sun online, and yet when it comes to car insurance, we prefer going through agents who may or may not have our best interests at heart.
- Aggregator websites compare car insurance policies across various insurers and provide you a quick view tabulating all inclusions, add-ons and exclusions. This helps you to pick the plan that suits your precise needs!
- You can also look into the credentials of the insurer online by reviewing their claim processing, claim settlement ratios, feedback on customer service and a lot more.
Not only is it hassle free, but you are guaranteed to save on premiums too!
Choose the right IDV
In case of theft or total loss of your vehicle due to an accident, your insurer owes you the Insured Declared Value of your vehicle. This is present on your policy as the “Sum Assured” of the insured car. Depending on the age of your vehicle, every insurer offers varying IDV amounts.
Remember that the higher your IDV, the higher your premiums, and vice versa. So whether you are purchasing or renewing your second hand car insurance, remember to set your IDV to a reasonable amount that will keep your premiums in check while also protecting you in case of an unforeseen eventuality.
Let your No-Claim Bonus accumulate!
Good drivers are also smart drivers. Every policy comes with a no-claim bonus that promises deductions in premiums for every year without a claim.
- If your bonus has reached a ceiling of 50%, you can drive down your yearly premium by 50%!
- So it is important to make claims only in the event of a real setback. Tiny claims made to fix mild scratches and dents end up costing you more in the long run.
- It is especially important to remember that the bonus is for the insured and has nothing to do with the vehicle. It can be transferred to any new vehicle you purchase and also when you switch car insurance
Keep an eye on your deductibles
Whether you are looking for second hand car insurance or coverage on a new car, put some thought into your deductibles. The more you pitch in, the more it impacts the premium that you pay, reducing your outgo by as much as 30% or more.
However, keeping your deductibles very high is not a wise move for those who live in crowded cities or drive long distances often since the chances of untoward incidents increase exponentially.
Before you move on…
In addition to all of the above, if you have equipped your car with anti-theft alarms, central locking and other safety features make sure you mention the same while choosing your policy!