Rahul had his new car delivered a few days back. There are no second thoughts that he was ecstatic after the purchase. However, what made him even happier was the fact that he did not have to worry about the car insurance up front. In India almost all the dealers provide you with car insurance for the first year. As the year passes by and the renewal dates come closer, Rahul starts to do his due diligence to find the right car insurance.
This was just the beginning of a learning curve that Rahul is now glad about. Rahul knew that driving without car insurance is both risky and illegal. It was risky because he will have to take care of any financial shortcomings due to an accident or a mishap. Not only would he pay for damages to his own car but also to the other car, person or property involved. And illegal because the Motor Vehicle Act of 1988 mandates all cars to have valid car insurance on them at all times.
Money Saved By Shopping Car Insurance Using These Methods
Now that Rahul knew it for sure that car insurance is the need of the hour, he started digging around a bit to see if he can save some money. Surprisingly, he found more than a few ways by which he was able to bring down his car insurance premium. Here are some of them.
- Shopping Online
Rahul is pretty adept at shopping online and thought to put his skills to use when it came to insurance. When he searched for car insurance policies online, he found that they are not only cheap but quick as well. Since insurers do not have to employ agents and other intermediaries for selling the policies, the benefits are passed on to you.
On the other hand, Rahul found out that the turnaround time for a policy online was incredibly fast. In fact, you can receive a copy within a few minutes of making the premium payment.
- Compare to Save
Rahul wanted to take his online shopping experience of the car insurance a step ahead. Just like he does with other products online, he started comparing different policies. This way, he was able to gauge how much each insurer was charging him for the same policy. He looked at the features provided and did a quick comparison of the prices and saved quite a bit there.
- Choose Add-Ons carefully
For add-ons, the age old saying holds well, a penny saved is a penny earned. We tend to buy add-ons just because an agent said or because one of our friends took the same. One needs to take a judicious call on whether or not they want a specific add-on.
Lower Your Car Insurance Rates With These Tips
Apart from the major tips mentioned above, there are quite a few quick tips that you can deploy during your search for car insurance to save further.
- On time renewal
This might seem a no brainer but a lot of us fail to do so. Should you forget to renew the policy on time, an insurer might ask for vehicle inspection which might cost you some money. Apart from that, if your previous policy lapses, you might end up paying slightly higher premiums for the next time. You also might miss out on the NCB. Thus, renewing on time has a lot of inter-related benefits that you mustn’t miss out on.
As per the IRDAI if a car owner is a part of any of the recognized organizations or associations of the country, they will receive a small discount. Some of the most popular associations include, Automobile Association of India and Western India Automobile Association. However, do not expect a mouthwatering discount due to this, but a rebate of about 5%.
- Security Devices
Another smart way to keep your car secure and premiums low is to install security devices. This provides the insurer confidence that your car is secure and thus the lower premiums. Again, it won’t fetch you a huge discount, but you can expect up to 2.5%