Considering the ever-increasing inflation, we try to save every possible penny daily. One such saving strategy would be investing in an optimum motor insurance plan.
Motor insurance is a necessity for every vehicle and as time goes, the burden of premium rises on the vehicle owner. Here are some ways which can help cut down the premium significantly.
Considering the ever-increasing inflation, we try to save every possible penny daily. One such saving strategy would be investing in an optimum motor insurance plan.
Owning a car could be heavy on one’s pocket if it undergoes any heavy damage due to an unprecedented situation. Motor premium insurance comes in handy during such incidents. Having an insurance plan not only removes the possibility of having to pay a hefty sum to pay for damages after an accident but also saves you from possible financial hassles.
Here are some simple ways that can help reduce your car insurance premiums considerably.
To begin with, prevention is always better than cure, so it’s better to lower the risk of your car being stolen by investing in a good security device such as steering wheel locks, security alarms etc. Installing certified anti-theft devices could probably lower your premiums, as such initiatives could enhance the car’s security and reduce probable risks in the eyes of the insurer.
Modifying, altering or adding any extra device to your car can increase the premiums by a significant amount. This is because some modifications would increase the risk of accidents or theft. The cost increase would completely depend on the type of enhancements made. Moreover, it is highly significant to report any amendments to the car to the insurer to avoid rejection during claims.
Insured declared value, also known as IDV, is the approximate current market value of your automobile and the maximum value that your insurer would pay during a claim.
Different factors such as the model or make of the car, availability, current condition, type etc., can affect the IDV. Setting the right IDV is critical as it might impact the total premium you pay for your plan. Selecting a greater IDV will raise the premium needlessly, while setting a low number will lower the premium (but instead offer fewer benefits/features). Also, it doesn’t makes sense to overdo this value as the claim amount is primarily paid out based on the type or situation of loss.
This is critical as you might have to buy a new plan if you forget to renew your current motor insurance plan and let it lapse. In some cases, you might have to pay a penalty for late renewal. Renewing your car insurance on time is as important as buying one. Procrastinating or ignoring to renew the policy will result in you letting go of some benefits. For example, you will be deprived of the benefits of the no-claim bonus while buying a new one, despite having made no claims during the previous policy's term.
It’s recommended that the insurance plan should be renewed at least a week before it expires.
Joining a recognised automotive organisation before purchasing a new vehicle insurance coverage can help. The benefit of joining such an association is that as a member you may get credits that can be used to reduce the premiums.
Lastly, consider comparing the features, benefits, coverage, sum insured, premiums etc., of plans offered by different providers. Create a list of pros and cons based on your requirements. Such comparisons can be made online on an insurer’s official or insurance broker’s websites. Research thoroughly before investing in any motor insurance plan to get the best deal possible, just like you do for other products.
The bottom line is: a penny saved is a penny earned!
The author is the Director of Probus Insurance, Insurtech Broking.
(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)