When you buy a car, you take out an insurance policy that has to be perpetually renewed every year. Most car owners take it as matter of routine and keep on insuring the vehicle with the same insurer year after year without bothering to find out whether they can get a better deal from others. With the modern digital environment where Internet rules lives, a little bit of online search for the best prevailing prices can give anyone an idea of the current rates and where the best discounts on renewal are being offered.
Here are a few tips to save money while renewing your car insurance –
- Search online for the best plans – There are two ways you can carry out the search. The first is to visit the site of your present company and go through their plans. You will find that there are various options on offer which you can compare and shortlist. Later you can talk to your agent for further discounts and “no-claim” bonus if applicable and finalise the policy. The second method is to visit websites – and there a lot of them- that detail out the plans offered by different companies along with the premium amounts and benefits. You can choose one, give the make and model of the car and renew the premium online. However, the problem here is that you will be establishing a relationship with a faceless entity, one with whom you have had no human contact. Hence in the event of a claim, you have to make a fresh start with an agent.
- Get no-claim bonus – It is a rebate that is offered by the insurance company if you have not made any claim the previous year. If you are eligible for one, you should claim it during renewal. Over the years, your insurance premium will be considerably reduced with this discount only.
- Know the actual Insured Declared Value – IDV or Insured Declared Value is the maximum value of your vehicle that will be considered for insurance coverage and will be computed by adjusting the market value of the vehicle minus total depreciation. It is the amount that will be paid to you by the insurance company in case your car is stolen or damaged beyond repair. IDV is closely linked to the quantum of premium so it is necessary to have the IDV calculated if necessary by professionals in this field.
If you are in the State of Victoria, Australia, you can visit certified and accredited service station Western Auto Services to have the IDV evaluated by their experts. They are an authorised garage to issue roadworthy certificate in Melbourne as well as LPG conversions.
- Choose a higher limit of voluntary Deductible – A Deductible is the amount that a policy holder has to pay as margin in case of a claim. All insurance companies offer the option to policy holders of deciding on a voluntary deductible over and above the mandated one. For a claim that is filed, the insured has to pay the deductible amount and the insurer the rest. When calculating insurance premium, the deductible has a role to play. The higher the deductible the lower will be the premium. You may not have a voluntary deductible amount in your present policy but when you go for removal, you can opt to have an amount included in it.
These are some of the ways that you can explore to pay a lower premium when you renew your existing policy.