Ways to Save on Car Insurance


Ways to Save on Car Insurance

Around the time when a car insurance policy needs to be renewed, the policyholder looks to see if they are able to reduce and save on their auto premiums. Usually, insurance companies provide options, or you can take your own initiative when it comes to discounts. This post looks at some of the major ways that you can save on your car insurance and how to maintain them.

Voluntary Deductible Discount

In the claims process, there are two deductibles –compulsory and voluntary. Both of these are a set amount that you pay in the event of a claim. The compulsory is obviously paid regardless, but the voluntary one is up to you if you want to pay it at the same time. Paying and increasing the voluntary deductible is a gateway to lower car insurance rates because the relationship between them and deductibles is directly inverse. You may adjust your voluntary deductible to offset some car insurance costs, but you should be sure that you can afford it.

No-Claim Discount

Similar to a safe driving discount, car insurance providers will cut you a discount if you have no claims filed prior to your policy renewal. This can take anywhere from 20% to 50% off your insurance rates and can even be transferred to a new policy if you are taking one out. Each successive period where you go without filing a car insurance claim means the discount further increases. Always remember to renew your policy before the expiration date to assure that the discount is used.

Occupation-Based Discount

Based on your field of work or occupation, you may be offered a special discount by your car insurer. Some examples include those in the armed forces or the medical field. Ask your insurance provider if you qualify for any job-based discounts when you are buying or renewing an auto policy.

Age-Based Discount

If there is one thing that car insurance companies look at with great detail is the age of the driver(s) they are insuring. The general rule of thumb is that older and experienced drivers are subject to the lowest insurance rates. New drivers, especially under the age of 25, are subject to the highest insurance rates. Ages 25 to 65 is when the premiums begin to even out, only to rise again as senior years are entered. While age isn’t exactly something that you can help, you can still use the day you were born as an advantage for car insurance discounts.

Automobile Association of India (AAI) Discount

By joining the AAI or the Automotive Research Association of India (WIAA), you are entitled to a car insurance discount for your membership or participation.

Safety And Security Features Discount

Car insurance companies love to insure vehicles with safety and security features because they lessen the risk of a car being stolen or criminally damaged. There are special anti-theft devices on the market which can translate to a major car insurance discount. Every type of car insurance offers this discount.

Customize Your Car Insurance

At the end of the day, it’s your car insurance. You are able to dictate how much coverage you have. Using your budget and needs as a guide, you can shave off some unnecessary coverage on your policy that may be costing you too much. The best part about car insurance discounts is how active a role the policyholder has in qualifying for them.