Third-party insurance gives you financial protection from having to pay a third party in case of an incident involving your car. However, a comprehensive car insurance policy goes a step further by also covering the financial expenses that may arise due to damage to your car.
Since comprehensive coverage is more holistic, premiums are higher than third-party insurance. Moreover, there is a good chance that your car insurance premium will add up over time.
Here are some ways in which you can save on your policy premium cost.
How to Save on Car Insurance Premiums
Today, it is possible to search for cheap premium based policies online with the help of tools like a car insurance calculator, whether you are looking to purchase or renew your policy. But being informed about the different strategies to save on premium cost can help you get the policy of your choice at a cost-effective rate.
When Selling Your Car
So, how to lower the auto insurance premium at the time of selling your car? If you are considering selling your car when renewing your policy is due it may be wise to opt for a basic coverage.. Since you are not going to be the owner of your vehicle for long, you can buy third-party insurance. This will ensure continuous coverage while handing your car over to the new buyer without overpaying for the coverage.
When Purchasing a New Car for the First Time
This is the time when you can avail yourself of enough coverage at a cheap premium rate. Since your car is brand new at this time, you will enjoy more benefits than owning an old or used car. For example, if you opt for nil depreciation cover to add to your car policy, it can only be applied till your car is 5 years old.
However, this add-on cannot be applied to third-party insurance, so choosing a comprehensive plan will enable you to enjoy this add-on benefit.
At the Time of Policy Renewal
One of the best times to lower car insurance premiums is when you renew your old car policy. This is the time you want to consider whether you want to continue buying your policy from the same insurer.
It is also the time when you can apply the NCB discount on your insurance premium to lower the overall premium cost. You can also reconsider whether the add-ons that you included in the last policy are worth being added to your new policy.
When Car Usage Decreases
One of the ways to lower car insurance premiums is by getting rid of the add-ons that are no longer necessary as you decrease the usage of your car. For example, if you moved to a new job site and no longer require your car to travel to and fro, then you can do away with add-ons (if you have added them to your existing policy). You can opt for a simple, comprehensive plan to protect it from theft and disasters.
Additionally, you can also opt for pay-as-you-drive policies where premiums are calculated based on the distance you drive.
Conclusion
Generally, premium cost is based on the vehicle’s make and model, add-ons, coverage type, etc. But a wise evaluation of your needs can help you provide security to your car without stepping out of your budget.
