A car owner needs to protect his/her car against all possibilities. Physical damages to the car can lead to financial losses if one is not careful enough or does not repair the damage on time. However, this is not the only aspect of maintaining a car.
As you need to compensate for any loss caused to another person due to your car, you need to be prepared for such circumstances also. This is the reason why you need to buy car insurance and renew your policy before its expiry. Since this is not a onetime process and you need to keep repeating it till you own a car, you can be proactive and save money on car insurance renewal. In this article, we will explore some ideas regarding how you can save money on car insurance renewal.
Ways to Save Money on Car Insurance Renewal
#1 Know your requirements before you renew car insurance
Many of us think, especially those are new to car insurance, that the policy can be purchased randomly! This could mean, you went out in the market with a shopping list, closed your eyes and bought things just by pointing towards them. Some of these things might be of use to you, and others, well, completely useless. Similarly, before buying a car insurance policy, you need to make sure that you note down your requirements and then begin hunting for a suitable policy. This will help you to avoid buying covers that are of no use to you thereby reducing the wastage of money.
In recent years, buying any product online can be done in a matter of a minutes. You just need to have an active internet connection and a working device. Buying car insurance online is not only convenient but also economical as compared to offline methods. The logic behind this is, the insurer is spending money only on running a website instead of employing agents, training them or onboarding brokers to sell the product. In fact, some digital insurers, spend even less on running a company and pass the discount to you.
#3 Compare Car Insurance
Since a huge number of insurance companies sell their policies online, you can compare car insurance policies for coverages, services, and cost. When you compare car insurance online, you can buy a policy that will be feature-rich and cost-efficient.
#4 Set the right IDV
When you buy a comprehensive car insurance policy to cover the cost of repairing your own car, one of the steps will be to set an IDV. It is an abbreviation of Insured Declared Value. To set the right IDV, consider your car’s approximate current market value. Remember that setting a higher IDV will unnecessarily increase the cost of your policy, and setting a lower IDV will result in a lower claim amount in case of irreparable damage or “total loss”.
#5 Know your NCB
When you renew car insurance, you might be entitled to a discount called as No Claim Bonus, provided you have not raised any claims in the previous policy year. NCB can be as high as a 50% discount if you do not raise a claim for 5 consecutive years.
#6 Secure your car
An insurance company will allow you an additional discount if you install an anti-theft device in your car. In this manner, you will be appreciated for taking care of your car and reducing the chances of raising a theft claim. If you are looking to get any such security device in your car, don’t forget to inform your insurer but the same.
The Bottom Line
The ways of getting a discount on car insurance are simple. You will end up with not only a cheaper policy but also the one that provides a complete financial cover in case of an unfortunate event. Remember to read the policy document thoroughly before making any payments.
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