Car Insurance Renewal: A Few Steps To Save Money

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One crucial aspect of owning a car is insurance; you will attract massive fines if not insured. The same applies to two-wheelers and commercial vehicles as well. Car insurance is an expensive affair, but how can one go about this without spending a lot of money?

DriveSpark outlines a few simple steps to keep in mind while renewing car insurance

1. Do not let it expire or lapse:

Many tend to renew the car insurance after it has expired, or at the last minute—do not do that. Renew the policy well in advance. You can save money by doing this because if there is a hike in price during renewal, you would most likely not be paying the increased amount. Moreover, once the insurance has lapsed, insurance companies will want to inspect and physically check the vehicle, which means taking the car to their office. You end up wasting a lot of time and money as well.

2. Do not be in a hurry:

It's best to check your options while renewing your car insurance.
There could be other insurance companies that have lower interest rates or discounts. Some even give free add-on policies; so check multiple offers before coming to a conclusion.

3. No-Claim Bonus:

If you do not have any claims during the policy period, a no-claim bonus (NCB) is offered. Check with your insurance company regarding NCB, and if you are eligible, then renewing the policy is cheaper. An NCB carried forward for a long time can give you up to 75 percent off on your premium. You can also transfer the NCB from one company to another.

4. Make sure you read the right facts:

It's best to do your research about car insurance renewal. Make sure what you read are facts and if in doubt, do not hesitate to pick up the phone and call the insurance company. There are quite a few car insurance offers floating online, just to attract customers. Never hesitate to double check offers and most importantly, the terms and conditions.

5. Add-ons:

There are multiple add-ons provided by various insurance companies; you should check which insurance company offers the best prices and also, which add-on goes best with your policy. By doing this, a lot of money can be saved, not while paying the premium, but on what the policy covers (do not opt for unnecessary add-ons). It takes a few minutes to compare multiple offers, but it is entirely worth it.

Read more on: #insurance #car talk #tips
Story first published: Monday, October 12, 2015, 14:54 [IST]
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