How to Save Money While Renewing Your Car Insurance

Posted by Shaheen Shaikh on May 11th, 2018

Car insurance is a vital requirement for every car owner these days. A car insurance safeguards your car financially against any damage. People usually tend to spend much on car insurance renewal but if your vehicle has been treated carefully, you cannot just save money, but also enjoy additional benefits at the same price. The following tips will guide you on how to save money on car insurance renewal.

Comparing Policies

Comparing different policies from various insurance providers used to be a tough task but now it has become easy with the availability of numerous aggregators on the internet. You can search and compare different options in one place. This makes it easy for you to compare premiums, covers, duration, etc. Comparing insurance online is an easy and hassle-free process. You can find cheaper alternatives for your current car insurance policy. You can easily switch to more affordable policy by comparing them and you may subsequently save some money by changing your insurance provider.

Calculate Your Car Value

For car owners, it is important to calculate the market value of their car before initiating the car insurance renewal process. After calculating the depreciated value of the car, you can further negotiate the amount of premium with your insurance provider and save certain amount of money. For an instance, if you purchased the car for Rs 4 lakh and three years later, its value is Rs 2 lakh then you can say that there is 50% depreciation in the value of your car. You should renew the policy based on the depreciated value of the car and not the market value at time of purchase. Doing this you will have to spend less on premiums.

Claim Deductibles

The experts advise that car insurance holders should claim for higher deductibles. There is always an option of reducing the amount of premium in future, which can be paid later. Voluntary Deductible is the amount that you pay at the time of the claim and if you pay a higher amount of voluntary deductible, then it converts into a sort of premiums-discounts over time. This proves out to be beneficial for the insurance holder.

Get The No Claim Bonus

In most cases, the car insurance companies reward you if you have not made any claims under your existing car insurance policy. The policyholders need to ensure that they get their No Claim Bonus as soon as your policy reaches the time of maturity. If you develop a habit of safeguarding the no claim bonuses on time, you can further reduce the premium amount by up to 50% in the following years.