Insure Your Car and Save Money at the Same Time
Insure your car and save money? It can be done if properly thought out. Car insurance is the contract between the car owner and the insurance company. The owner of the car agrees to pay the premium amount and the company agrees to pay for the losses that are mentioned in the insurance policy document. Depending on the country and the location, certain terms of the car insurance might vary depending on the legal regulations. Some lower degree car insurance might offer additional benefits like the sustained from the things other than the traffic collision, like the damage sustained by colliding with the stationary objects and keying. It also offers financial protection against theft of the vehicle and other possible damages. When you insure your car you also insure that loss from these type incidents are kept to a minimum.
The need for car insurance
The car insurance is essential because it covers the expense of the vehicle in the event of accidents caused to other vehicles or car or pedestrian or passenger damage. Since accidents might happen to anyone, reassuring that the owner of the vehicle is covered financially is very important. The insurance provides the financial support when the car is destroyed, stolen or vandalized. There is only one time when the car insurance is not required and that is when the car is declared off the road through SORN (Statutory off Road Notification) from the DVLA.
Simple ways to save money when you insure your car
Compare the shops
Nowadays it is easy to find out the affordable insurance companies that offer best deals on the motor insurance or car insurance. There are many car insurance agents available online, apart from those in the country, so the options are more. However, it is hard to choose the best insurance company that gives the best affordable rates, while maintaining the exact amount of the coverage.
So, the first and the foremost thing that the car owner must do are to compare the insurance companies that offer cheap rates with additional benefits. There is no harm in asking doubts regarding the insurance policies, the car owner must speak with the agents and clarify all the doubt because it will give an idea about the policy structure of each insurance company. Similarly, they have to check with the online insurance companies and collect the details about the policy structure they offer.
By comparing the offline and online car insurance companies, the car owner will get an idea about the best and cheap motor policies available in the market. Finally, experience speaks a lot. So, the family members and friends about the car insurance companies will give added information and warning about the insurance companies.
Many people fail to notice this, but the age of the person is also considered as a major factor in the setting up of the price in the insurance premium. One can identify that the rates of the premium drop as they hit 25 years, while the discounts can be as high as twenty to twenty five percent, however other actors like the driving records and marital status are taken into consideration.
The policy holder between the age of 25 to 55 are considered as safe drivers while the teen drivers and the elderly drivers are considered more dangerous behind the wheels. The new and teen drivers are subject to higher premiums because they are statistically considered as less safe drivers with less driving experience. Similarly, the elderly drivers above the age 65 to 85 are also considered less safe drivers due to the medical and health issues.
The house and workplace of the policy holder also matters while taking the motor insurance. And the reason for the location being a factor is because, the places that have a less criminal record is safe for the vehicles to be parked because it will not be damaged or lost. A place with wealthy neighborhood is considered as safe location. There is another reason for the location being the criteria, because a shorter commuting area is less prone to accidents and the commuter can spend less time on the road.
Model of the car
The brand and model of the vehicle is also a factor that is considered while getting motor insurance. This info is required by the agent for many reasons. A new car is subject to higher cost for the replacement and repair and that is one of the reasons considered by the insurance company. A used vehicle is much more reliable that the brand new cars, and even if the old cars are of affordable price, it might lead to higher insurance rate.
People who own the luxury cars and sports car are also subject to higher premium rates that the others.
Increase in the deductible income
The deductible amount is the money that the car owner must pay at the event of the accident before the insurer pays the claimed amount and it is also a factor that is responsible for determining the premiums. So, if the deductible is larger than the car owner has to pay only less coverage every month.
However, many people are not aware of this, but the agents will help in increasing the deductible amount thereby reducing the monthly coverage. So, people with clean driving records need not pay the deductible and can save money from the motor insurance.
Consolidating the policies to a single roof
If the car owner has taken insurance policies from several insurance companies, they can consolidate them into a single company and deal with a single agent. It reduces the hassle and also the overall amount paid every month.
Some people may own many cars and have separate insurance for all the cars. But consolidating all the vehicles into a single insurance policy can save the money. The benefit of consolidating the policies into a single policy is that it reduces the premium every month and also the number of papers sent to the policy holder.
It also allows many people to join into a single policy which reduces the motor insurance premium.
Any kind of business requires loyalty among the customers, and it benefits both the company and the consumer. Paying the premiums on time makes the policy holder a loyal customer and it reduces the extra charges and fines. And the insurance companies reward their loyal customers with reduced premiums and benefits.
The credit score
Many people are not aware of the fact that the credit score matters a lot while purchasing car insurance. Because the credit score helps the insurance company to determine whether the car owner is a safe driver or not, and people with good credit score are considered as better drivers have can get maximum coverage and have to pay minimum premiums each month.
Cut the miles
Carpool not only helps to keep the environment clean and reduce the traffic, but it also helps to reduce the mileage. If the car owner decides to get a car insurance and at the same time save money, they have to simply start the idea of carpooling with two or three friends. The carpool cuts up to seventy five percent of the mileage and the can save more on the motor insurance.
The insurance companies track the mileage, and miles less than seven thousand five hundred is considered a good rate and thirteen thousand is considered as the medium rate. All of the above tips can help you to insure your car while you save money at the same time.
Author Bio : Anand Rajendran is a freelance writer living in Chennai, India. His interest in personal finance and budgeting began when he was earning an MFA in theater, living in one of the most expensive cities in the country (Chennai, TN) on a student’s budget. Today, he writes for a number of websites and keeps up his own Classic Car Insurance company named Sysive in UK.