As hardworking individuals, we all understand the importance of money in our lives. Given the rising cost of living, the phrase ‘a penny saved, a penny earned’ certainly has more meaning than ever in the ordinary person’s life. Routinely, the average person has to deal with a number of costs like groceries, commuting, electricity bills, children’s school fees, loan repayments, insurance premiums, etc.
Speaking of costs, motor insurance premiums, like any other insurance premium, can really hurt your monthly budget. However, it is also necessary to ensure the safety of you and your vehicle in the event of an unforeseen circumstance. The good news is that there are ways to save on motor insurance premiums in a few simple ways.
Compare insurance premiums before you buy
Do your homework before settling on a particular insurer. Go online and compare premiums set by different motor insurance companies. Motor insurance premiums may differ according to different motor insurance policies and the coverage they provide. Usually, a no-frills insurance policy turns out to be the least expensive. However, as features and coverages are added to the policy, the premium amount automatically increases. Also, be sure to read the detailed letter of the car insurancepolicy carefully before making a decision as it may contain details about any hidden charges or the like.
In insurance jargon, a voluntary deductible is basically the amount payable in the event of an accident. If your discretionary deduction is zero, you will receive the full amount of the claim in the event of an accident. However, if your policy specifies a certain amount for voluntary deduction, then that is the amount you have to pay, and in the event of an accident the insurance company will pay the remaining amount. The way it works, the higher your voluntary deduction, the lower the insurance premium amount will be. However, when it comes to voluntary deductions, caution should be exercised, and all possibilities should be considered.
Install anti-theft devices
Anti-theft devices serve two purposes when it comes to motor vehicle use. First, they protect you and your vehicle from theft, and second, they help lower your insurance premiums. The presence of security features can positively affect your determination of insurance premium by insurers when you buy car insurance online.
Forego claims on minor damages
As is customary, if a person does not make any claims on their motor vehicle insurance policy during a policy year, this entitles them to a No Claim Bonus (NCB). NCB is roughly around 20%. This means that if you take advantage of the No Claim Bonus after one policy year, you will be eligible for a 20% premium for the next year. However, you will continue to lose that NCB if you claim your insurer for minor expenses such as minor repairs. In the end, you must weigh the amount of NCB you are likely to earn against the cost of the repairs you wish to claim. It is also useful to know that the No Claim Premium will increase each year, so the longer you stay undamaged, the more you will save on insurance premiums.
Don’t let your policy expire
A policy expiration means you will no longer be eligible for coverage in the case of an accident. In this situation, you would have to buy a new policy. However, due to your failure to keep your policy active, the insurer is likely to charge you a higher premium. Therefore, you should set a reminder for your policy’s expiration date or receive a reminder sent by your insurance company itself. Having a car insurance app helps in renewing your policy. You can regularly check your policy’s status and renew it when required within minutes.
Avoid installing expensive accessories
Installing any expensive gadget in your vehicle can very well increase the premium. This includes alloy wheels, rear spoilers, exterior modifications, etc. This is because the insurer may evaluate your driving style according to the changes made to the vehicle, and the result may not be entirely positive, especially in determining the premium amount.
Hey, this is Johny Sehgal. I am the owner and caretaker at Finance Jungle. I completed my education in BSC and now heading towards the digital marketing industry. I usually have interests in reading, playing games and watching movies. I also love to write content based on quality information. The main motive of mine is to provide the top and best quality information to my readers. Finance Jungle is the blog for the same.