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  • Tips for cutting costs incurred on Car Insurance

    Published on July 29, 2020

    Driving a car that you have purchased from your hard-earned money is a wish that each one of us wants to fulfill. Along with accumulating funds for buying your dream car, you should also research for the best-suited insurance company that offers online car insurance.

    Choosing the ideal car insurance policy is vital.Is it possible to cut costs incurred on car insurance? The answer is YES!

    By the end of this article, you would be in a position to save much more on your car insurance. Here are the top tips to lower your car insurance premium

    Compare and Decide

    Before buying a car, you do lot of online and offline research, same steps should be repeated while purchasing a car insurance.You should ask quotes from different insurance companies and compare their offerings. Price should not be the only decisive factor. You should also look at parameters such as insurer’s goodwill, claim settlement ratio, financial strength, amongst others.

    Premiums are majorly decided based on the cost of the vehicle, its safety record, repair costs, etc. Whether you are buying a new vehicle or a second-hand vehicle, always go online and check for the cost of insurance.

    Maintain an exceptional credit history

    Maintaining a good credit history is extremely important as it has an impact on your premium costs and can result in the lowering of car insurance premiums. Good credit history also gives confidence to the insurer since it indicates that you are in a position to pay your premiums on-time.

    Before you opt for a suitable car insurance policy, make sure that you clear all your financial debts else it would harm your credit history.

    Leverage advantage of higher deductibles

    Deductible is the amount that is paid by the insurance company before it starts compensating. Choosing a higher deductible could result in the lowering of car insurance premiums. Hence, you must have sufficient funds in your bank account before you make a claim.

    Most insurers offering car insurance also offer other insurance products like bike insurance, life insurance, and more. If you opt for other products from the same insurance company, there is a possibility that they might reward your loyalty and lower your car insurance premium.

    Timely coverage of car insurance policy

    Before you decide to review the car insurance policy, it is essential to do a detailed review of the coverage amount.

    You should skip the comprehensive cover if the vehicle being owned is not worth the cover. Along with consulting the agent and other car owners, you should also do online research before you arrive at the final decision.

    Grouping of insurance policy

    If you are a working professional, your company might be offering some form of insurance (i.e. health insurance). Choosing a car insurance plan through a group plan from your existing employer can significantly improve the chances of premium reduction by the provider.

    Conclusion

    Choosing a car insurance policy is as important as choosing a four-wheeler that suits your budgets. The tips mentioned above can help lower your car insurance premium.

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    1 Response for “ Tips for cutting costs incurred on Car Insurance ”

    • rachel frampton says:

      I’ve been wanting to purchase an SUV, that’s why I’m thinking of buying car insurance because this will help protect me financially just in case something happens. You’re right about the importance of seeking quotes from various companies. I’d also keep in mind to fix my credit score since this will have a great impact on my premium cost.

    Leave a Reply to rachel frampton