A penny saved is a penny earned. This idiom makes a lot of sense if you are in your 20s. It is the age where youngsters are finding their way in life. How much to save, how much to invest, how much to spend? Such questions are constantly buzzing in the minds of youngsters. Being cost conscious has an effect on all aspects of life and owning a car is one of them.
Read ahead to learn some tips on how to save money on car insurance in your 20s.
1. Better Safe Than Sorry
It is mandatory to purchase a car insurance if you want to drive your car in India. You might be tempted to get it just to comply with the mandatory aspect and not spend too much money. Yes, Third-party insurance is inexpensive but it doesn’t serve the purpose of insuring your car as it doesn’t cover the cost of repairing damages to your car.
On the other hand, a Comprehensive Car Insurance plan gives you all round protection. It is expensive than the basic policy but acts as a financial safety net in case your car gets damaged. You are in your 20s, adventurous and raring to go. Road trips, long drives, daily commute, etc. are an essential part of your life that increase the risk of getting into an accident. The cost of repairing your damaged car will be way more than what you will spend on purchasing a Comprehensive Car Insurance plan. Thus, it is better to be safe than sorry.
2. Adding Add-ons?
Add-ons are extra car insurance covers designed for additional financial security. People can go overboard while choosing add-ons resulting in unnecessary coverage and an increased insurance premium. These aren’t impulse purchases that you make while shopping. To think of it, you might not even need an add-on.
Be judicious while picking add-ons, choose only those that are suitable for your needs. For example, choose a Car Accessories Cover if you travel in your car with expensive gadgets and don’t opt for Passenger Cover if you often travel solo.
3. Jazzing It Up? Think Again
Thinking of jazzing up your car after watching the Fast & Furious franchise? Fast cars only look cool on screen or on racing tracks. Modifying your car can lead to an increase in your insurance premium. Repairing the damaged parts of a modified car can also turn out to be expensive. Over-the-top exteriors and gadget-filled interiors can also attract unwanted attention and make your car susceptible to theft.
4. Install Anti-theft Devices
Hold on, don’t let your imagination go wild, this is not like those Home Alone movies. Installing basic anti-theft devices in your car can reduce its insurance premium. Insurance companies might consider the fact that you have taken a proactive measure of ensuring that your car doesn’t get stolen. Thus, reducing its risk. Make sure to install anti-theft devices approved by Automobile Research Association of India and inform your insurance company about the same for a discount on insurance premium.
5. Safety First, Always
Your twenties is the time when you are exploring new routes and getting used to driving. This makes it all the more important to be cautious, follow rules and drive safely. Insurance companies reward safe driving in the form of a No Claim Bonus (NCB). NCB is a discount on your insurance premium. It is offered on policy renewal for every consecutive claim-free year. This discount can go up to a steep 50%.
6. Purchasing Car Insurance Online
Insuring your car directly from the insurance provider can help you save up to 80% on car insurance. Wondering how? When you purchase insurance directly from the insurance company, you cut out all the middle parties. New-age insurance companies are digital-first. This means that they do not spend much on physical infrastructure and other costs. They transfer such cost advantages to their customers. Hence, you can compare car insurance online and select the suitable one making the online purchase of car insurance quick, easy, and convenient.
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