Renewing your Car Insurance? 5 Tips that can Help you Save Money
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Renewing your car insurance is quite a headache, but you will have to follow the norms before the policy term lapses. For many, the process of insurance renewal policy is a hassle-bound job as they find it complicated to go through the procedures online. However, those people are unaware of the fact that renewing their policies online can save them a great deal of money, while the procedure is hassle-free. Read the following to know the five useful ways to save money by renewing your car insurance.
5 Tips to Help Save Money on Car insurance Renewal
- Before going into the nitty gritty of renewal policies, compare insurance packages available online. Check out the websites where you may compare the various packages that are available with varied pros and advantages. It is, indeed, a tedious job continuing your existing insurance policy, so why not compare? Even if you are a novice, visit the websites where you can find the comparison process quite easy and even hassle-free.
- Your next most imperative job is to calculate the value of your car. If you cannot do it yourself, seek help of an expert who can save you with a few mathematical calculations by calculating the car's value appropriately. Understanding your car's exact value is inevitable for renewing your insurance. Also, the right calculation will help you find the right premium so that you need not pay anything unnecessarily.
With the help of a financial expert, you will know the depreciated value of your car, which you can negotiate with your insurance agent. This will help you know the right premium that can help you save immensely. For example, your car's market value is Rs. 4 lakh at the time of purchase, but after three years your car's value reduces to Rs. 2 lakh, thus marked with a 50% depreciation. Therefore, when renewing car insurance policy, you should consider the depreciated value which is Rs. 2 lakhs, instead of the original market value which is Rs. 4 lakhs.
- Did you know claiming higher deductibles can help to minimize premiums which will be paid later. So, what is voluntary deductible? It is equivalent to the amount that is paid during the time of claiming money. However, if you pay a higher amount of voluntary deductible, it automatically converts into premium-discounts over a certain period of time. Did you know that paying higher deductibles can actually pose quite risky for a customer? Therefore, the customer should increase the deductible so as to avoid any problems in the future.
- As you know, no claim bonus is regarded as the award that a student gets for performing the best job. In case of car insurance renewal policy, the insurance company will reward the customer for not making any claims as per the policy. However, for that the customer has to ensure that he/she can claim a 'No Claim Bonus' only when the policy matures. This will help reduce the amount of premium by 50% over the years.
- Most importantly, customers should read through the fine prints of the various car insurance policies that they want to purchase. Before buying or renewing, read through all the terms and conditions that you will find on the documents. Enlighten yourself with the minute information that will acquaint you with any hidden clause.
Thus, following the above five tips will help you save money when buying a car insurance policy or renewing the policy.
This article was written by prateek jha for on .
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