Car Insurance is an imposition on almost all drivers unless you are ready to pay the hefty fines of driving uninsured on the roads. In most of the world, driver’s insurance is required by law.
Even though car insurance is the costliest expense, people still hope never to use it. But, whether you would like to use it or not, you need to have one.
However, if you do a bit of research and follow some hacks, you can turn car insurance into a valuable investment. To help you with this ordeal, here are the ten tips and tricks recommended by industry experts.
1 – Check Your Car’s Expected Insurance Premium
You should not make the mistake of buying a car without knowing its expected insurance rate. When you narrow down your car options, you should check their tentative insurance rating. It will help you to determine the cars that are insurance-friendly.
As a basic rule, the expensive cars are expensive to insure.
2 – Own Instead of Lease the Car
If you are planning to buy the car and want to minimize the insurance premium, the best approach is to own the car rather than to lease it.
When you lease the car or request bank loan, it is not you but your bank or the company who owns the car that decides the insurance. So, if you want to set your rules, you should have your car.
3 – Get Quotes Instead of Auto Renewal
Many people make the mistake of auto-renewing their policy every year without any further investigation.
Sadly, the insurance industry does not reward its loyal customers, and the insurance premium for regular customers is higher than the new ones.
It is better to get quotes around the date of renewal and continue with your insurance company only if it offers the best price.
4 – Get Multi-Car Insurance Policy Instead of Separate Policies
The drivers who own more than one vehicle registered at one address can benefit from a multi-car insurance policy. The insurers offer special discounts to the customer who insure more than one product from them.
The multi-car insurance policy is not only cost-effective but also saves you from the trouble of renewing different policies.
5 – Compare Multiple Quotes before Buying a Policy
If there is one tip that every insurance expert recommends, it is that you should get multiple quotes instead of just getting one quote and buying it. You should get at least three quotes from different insurance companies according to your requirements.
You should compare the quotes and buy the best car insurance policy that offers the best value for money. The best policy does not mean the cheapest car insurance policy, but the one that is cost-effective, reliable, and provides an appropriate level of coverage.
6 – Adjust Your Deductibles
The deductible is the percentage of the claim that you pay when you meet an accident. In most of the cases, the insurance company only pays a pre-fixed percentage, and the rest of the claim is paid by the driver.
When you raise your deductible, your insurance premium lowers. But, if you raise it too much, you can be in trouble at the time of claim.
7 – Your Credit Score Matters
According to the insurance experts, the car insurance companies factor in your credit score in determining your insurance premium. The drivers with good credit scores are charged less for the car insurance policy as compared to the drivers with low credit score.
So, the way you handle your finances affects the amount you pay for your policy.
8 – Reduce Your Mileage
It is understood that people drive when they need to drive. But, the car insurance experts consider it necessary to intimate customers about the impact of their mileage on insurance premium. The more you drive, the more there is the risk of meeting an accident which means that your insurance company will raise your premium.
Whether it is about taking a metro to the office or choosing a pool car, reducing the mileage can help you lower insurance premium.
9 – Collect No-Claim Bonus
Insurance companies like drivers with clean claim record. A clean claim record means that the driver is a safe and low-risk driver.
Thus, insurance companies like to reward them with good discounts. Before filing a claim, you should see if the claim is necessary? Can you pay for the repairs yourself? You should try to pay for small repairs yourself to collect the no-claim bonus.
10 – Take Charge of Your Driving Performance
There are a lot of things that are only determined by your insurance company, and you cannot help any of them such as coverage options and terms and conditions.
But, the one thing that you can control about your risk-profile in car insurance policy is your driving performance. The good drivers are rewarded with special discounts and lower premiums.