Buying a new car is exciting, and paying a high insurance premium does not necessarily need to ruin your mood. With premiums rising due to GST on motor insurance being shifted from 15% to 18%, finding ways to lower your insurance cost can make a big difference.
The good news here is that you can reduce your premium smartly by making a few adjustments to your insurance policy, car, and driving habits. Let us explore the most effective ways to get the lowest premium on your car insurance for new car.
3 Scope for Comprehensive Car Insurance Premium Reduction
After you buy your car, you want to protect it. To do so, you want to purchase a comprehensive car insurance policy, but you want to get it at the lowest price possible. To reduce your car insurance premium, there are 3 areas you can focus on.
First, reduce the premium while you get your policy. Second, positively maintain your current driving habits. Third, keep a few things in mind while choosing your car.
5 Points to Remember While Purchasing the Policy
What are the things that you can keep in mind while getting your car insurance for new car? Here are a few points to follow:
1. Compare Insurance Plans
Get quotes from multiple insurance companies and also go through their different plans. You can easily find the most competitive rates and coverage options online. Insurance options that the dealership provides may not always be the cheapest. So, remember to browse around.
2. Opt for a Higher Voluntary Deductible
Go for a higher voluntary deductible, which can reduce the premium of car insurance for new car considerably. Agreeing to pay a larger amount out-of-pocket in the event of a claim reduces the insurer's liability, which in turn lowers your premium.
3. Be Selective with Add-Ons
While add-ons, such as zero-depreciation cover or engine protection, can enhance coverage, they also increase the premium. Only choose the ones that are truly necessary for your needs, location, weather, and more. For instance, you can go for Engine Protect cover only for rainy seasons.
4. Inquire About Discounts
Always ask your insurer about the available discounts. Many insurers provide discounts for good drivers and people who have a convincing insurance claims history. Moreover, there might be some festivals and occasions, such as Diwali, New Year, and more, during which an insurance company provides discounts.
5. Consider a Pay-As-You-Drive Policy
If you are not a regular driver, you can also consider the option for a ‘Pay-As-You-Drive’ insurance policy. It is a usage-based motor insurance policy that offers lower premiums based on the distance you actually cover.
3 Points to Keep in Mind with Ongoing Habits
There are a few things that you can keep in check among your driving-related habits that can reduce the premium for car insurance for new car. They are listed below:
1. Maintain a Clean Driving Record
A history free of accidents, traffic violations, and claims is a critical factor in lowering your insurance rates over time. Suppose there is a person who has made only 2 insurance claims over the last 4 years, then they will get a lower premium in comparison to a person with the same car who has made 6 claims in the past 4 years.
2. Avoid Filing Claims for Minor Damages
To preserve your No Claim Bonus (NCB), consider paying for small repairs, such as minor scratches or dents, yourself. NCB can provide a significant discount, which can go up to 50% on your future comprehensive car insurance premiums.
3. Renew Your Policy on Time
Make sure to continue renewing the car insurance for new car before it lapses. This can prevent you from paying higher premiums as well as losing your accumulated NCB benefits. People who do not maintain their car insurance can also be considered irresponsible by the insurers and so be categorised as a high-risk individual.
2 Car-Related Points to Remember
Finally, there are a couple of things that you can do with your car that can help lower your comprehensive car insurance premium. They are as follows:
1. Avoid Unnecessary Modifications
Any form of customisations or fancy additions to the car’s features or appearance can increase the vehicle’s risk. This can lead to higher premiums. Changes also increase the car’s value and so might directly increase the premium to include its enhanced coverage.
2. Choose a Car with Strong Safety Features
Vehicles that have safety features, such as automatic braking, airbags, and anti-theft systems, may qualify for discounts. This is because they pose a lower risk to the insurer. Lower the risk, lower the liability, and hence lower will be your comprehensive car insurance premium.
Bottom Line
You can opt for selective and necessary add-ons, check for discounts, choose higher deductibles, maintain good driving habits, and more to reduce the premium on your car insurance for new car. In all of this, just remember not to compromise the quality of coverage you are getting.
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