Home Cars 9 Handy Tips For Cutting Car Insurance Costs In 2024

9 Handy Tips For Cutting Car Insurance Costs In 2024

by Nina Smith

With the ever-increasing prices of automobiles, the cost of car insurance has shot up everywhere. Today, the cost of maintaining a car is more than the cost of buying it. In such a scenario, car insurance can be a big hole in the pocket. Whatever be the price, buying car insurance is crucial as it saves a person from future financial crises.

There are many insurance plans in the market. The cheapest one may not include all the things required to safeguard the vehicle. Therefore you must have a clear picture in your mind as to what to add and remove from your insurance plan. Here are some handy tips to reduce car insurance costs.

Choose a legitimate insurance provider

Source: investopedia.com

This is the first and foremost thing one should look into before considering other things. There are a plethora of insurance providers out there wooing people to buy insurance from them. They may use fancy terms and add unnecessary riders, which may hike up the already exorbitant car insurance price. Therefore, it is necessary to go through your insurance coverage thoroughly before opting for it.

Insurance is provided by many companies, agencies, and independent agents. One such reliable insurance providing company is www.americaninsurance.com. You should prefer buying all your insurance policies from one company to avail of various discounts.

Adding Riders

You can modify your insurance plan by adding chargeable riders. Riders are miscellaneous things added to one’s insurance plan and range from fuel coverage to co-passenger accident coverage. Adding unnecessary riders may lead to overspending.

You need to go through the inclusions and exclusions of your plan very thoroughly. Your Insurance plan usually contains all the things necessary for your car. But still, if needed, add only those riders that are required the most. Pay for only what is needed.

No Claim Bonus

Source: lowmotor.com

The insurance companies provide a no claim bonus for every passing year where you don’t claim your insurance. Avoid claiming insurance for petty things, such as a small dent repair. These things can be repaired cheaply by a local mechanic also.

The No Claim Bonus belongs to the insurance holder and is not specific to the car. So, The bonus is even applicable if the policyholder decides to change his or her vehicle. Out of the various term plans provided, The No Claim Bonus does not apply to the third party insurance cover.

Source of buying

Insurance can be bought online, offline, through an agent, or directly from an insurance company. The best source to purchase insurance is online and directly from the company. An agent would charge a hefty amount apart from the money paid for the car insurance. You get better deals and discounts online.

Many online portals provide insurance at a cheaper rate than the offline mode. Moreover, it can be done at the ease of your home, and within ten minutes, you have your paperless insurance in front of you. Buying insurance online directly from the company is also considered safe. Customization of the plan also becomes easy.

Lowering your Insurance Declared Value

Source: automile.com

The Insurance premium is calculated on the basis of the Insurance Declared Value or IDV. A low IDV infers a low premium amount, and a High IDV infers a high premium. The value of IDV is decided mutually between the insurer and the insured. The value of IDV depreciates every year.

You need to carefully assess every factor before choosing to lower the IDV because the insurance company would only compensate for a specific amount. The rest of the expenses would have to be borne by the owner of the vehicle. Lowering your IDV is a cheap way out, but it may also increase the risk. Hence, the decision needs to be thorough.

Driving Skills

With the increasing road rage, this goes without saying that The safer you drive, the more accidents you can avoid. Your driving skills are one thing that you can control. Events like avoiding violations will eventually increase your insurance rates.

Insurance providers are more likely to offer better discount rates to safe drivers. They tend to provide an appreciable discount to people who have completed a defensive driving course. Deals vary from company to company but make sure to clear these things from the insurance providers and avail the best possible plan.

Increasing the Deductible Amount

Source: investopedia.com

The insurance value can also be lowered by increasing the deductible amount. This amount is paid by the policyholder only. This amount needs to be set in accordance with the person’s financial status as in how much they can pay instantly in an unprecedented crisis.

Policyholders are usually advised to start with a low deductible amount and increase it with time. The amount needs to be chosen wisely so that you do not end up overspending. Overspending will defeat the whole purpose of insurance.

Installation of Anti-theft devices

Installation of Anti-theft devices has the potential to lower the cost of the coverage plan. And as the name suggests, the main function of the anti-theft device is to protect from theft and burglary.

Installing Devices like steering wheel locks, car alarms, kill switches, etc., can bag you discounts ranging from 2.5% to 25%. The discount will, however, not be applicable in the third party claim.

Black Box Car Insurance

Unlike other insurance plans, black box car insurance is a personalized premium where people only have to pay what they drive. A device is installed in the car which tracks the miles the vehicle is driven.

The device installed tracks not only the miles but also the driver’s driving skills and time. This affects the discount you can get. If you are a skilled driver and drive safely, then you can reap further discounts. Black Box Car Insurance leads to lower car premiums. There is a drastic reduction in the cost; you may see reductions of up to 60%.

We hope these tips will assist you in bagging the best insurance plan that fits your budget.