5 Tips to Lower Your Car Insurance Premium

Just owning a car is not enough. You need to be a responsible car owner and this entails buying car insurance. In fact, car insurance is mandatory and that is why you should not neglect it. However, many people have the misconception that car insurance is an unnecessary waste of money and it adds to their monthly expenses. This cannot be further from the truth, as there are ways to lower your car insurance premium.

So, without much ado here are five tips to lower your insurance premium while ensuring you get the best car insurance for your needs.

1. Increase the Deductibles

When you take out motor insurance, there will be some out-of-pocket expense that you would need to pay before your insurance policy kicks in. This expense is known as deductible. If you increase the amount that you pay for repairs of your vehicle, it can lower the annual premium. However, make sure you can afford the deductibles without causing a strain on your finances. Also, don’t go overboard with deductibles. Otherwise, it would be futile having a car insurance policy.

2. Compare Car Insurance Policy

The Internet has made it very easy to buy car insurance. There are aggregator sites that allow you to compare car insurance online. When you compare different policies side-by-side, you can buy the best car insurance for your driving needs and budget. This ensures you select a policy that is affordable and does not compromise on the coverage offered. Be sure to read the fine print and understand the terms of the coverage, what is covered and how much you would have to pay annually. Sometimes, the cheapest policy may not be the best one for your needs.

3. Don’t Claim Small Amounts

If you make a claim, you forgo your ‘no claim bonus’ that insurance companies pay for each claim-free year. Hence, if your vehicle requires minor repairs, like replacing a damaged tail light, it is best to spend the money from your own pocket instead of filing a claim. This way, when you renew your insurance, you can claim the ‘no claim bonus’ to reduce your premium amount.

4. Install Anti-Theft Features in Your Car

Car insurance providers look favorably at car owners who make an effort to keep their vehicles safe. This means installing anti-theft devices and gadgets, like alarm, steering lock and gear lock. These features can bring down the annual premium by nearly five per cent.

5. Shop Online

Buy your car insurance online as online car insurance providers have lower overheads. They are more likely to pass on the savings to their customers in the form of discounts. This can reduce the cost of buying car insurance. Also, you can check the insurance policies carefully. That is why it is best to buy third party car insurance online, as it is always more affordable.

Read here the complete guide about buying a right Car Insurance and save your time and money. Use these five tips when buying car insurance and you will definitely bring down your premium, thereby realizing savings that you would not have thought possible.

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