While renewing your insurance policy you have to keep many things in mind.
Car owners who are serious about their insurance policy end up saving more money as compared to owners which do not pay any attention.
If you are ready to spend even a day reading and ascertaining everything about the insurance policy then you can save a lot of money while you renew it.
There are hundreds of car insurance companies in the country right now. You have to decide whether you are going to continue with the current insurance provider or change with a new provider.
You change your insurance company because you will be saving a lot of money on premiums.
Renewing Car Insurance Policy: Online or Offline
There are two ways you can renew your car insurance policy.
One is going online and other is offline through an agent or a broker.
Both ways have advantages and disadvantages.
If you are buying or renewing your plan online then you have all the necessary tools that allow you to compare all the plans of different companies at one place.
Try to get more information on this and cross check your results for different variables if you are doing it online.
Moreover you get whole day to sit and read every fine print in the document if you are doing it online.
But the best part of going online is you can avoid an agent who tries to push an insurance plan on you even if you don’t want to buy it.
However one disadvantage going online is you have to be educated about various car insurance plans. Only then you are will be reading long documents for hours and making final decision.
7 Easy Ways to Save Money While Renewing Your Car Insurance Policy
Now let us see 7 things that you can keep in mind while you are renewing your car insurance policy.
Read the Fine Prints of the Policy
The first thing you can do is read the all the fine print of the insurance policy. While renewing your insurance policy check all the features that are being offered by your current insurer.
It is quite possible that some of the features which were offered last year may not be offered next year.
Second most important thing that you have to look is claim to settlement ratio. Some insurers are strict for claim settlement ratio some are easy on it.
If the claim settlement ratio is higher for a company then it is better for the owner of the car.
Use Online Comparing Aggregators for Premiums
I think we debated the benefits of buying or renewing an insurance plan online. When you are renewing you insurance you must compare the policy of a company with all other companies in the market.
This way you will get to know how much premium you are going to pay for your current insurer as compared to others in the market.
There are many tools online like calculator which allows you to calculate right premium amount. You also look out for other features that other insurers are offering but yours isn’t.
Estimate Exact Valuation of Your Car
If you know the exact price of your car then you can save a lot of money on premiums.
As every year goes by the value of the car decreases which means the cost drops compared to current market price.
Therefore depreciation factor comes into play. Owner of the car must calculate the exact value of the car and negotiate the depreciated value of his car with the insurance company to get some discount on the premiums.
You pay less on premiums if the value of your car has gone down substantially.
Do Not Wait for Policy to Expire
It is a very smart move to renew your insurance policy well before the expiry date.
Usually it is recommended that you should renew well in advance at least 45 days before your current policy expires.
By doing this you save a lot of money by avoiding extra amount or hike in premium amount because your price has already been locked in for this year.
So don’t wait for the last for renewal and renew well in advance.
Paying More for Deductibles
As you know higher you pay for deductibles less you have to pay on premium. I will advice you while renewing you should higher deductibles so you have to pay lower premiums later on.
However paying higher deductibles could also be very risky so you have to pay deductibles which you can afford to pay.
Paying higher deductibles helps you saving a lot of money while renewing your car insurance policy.
No Claim Bonus
No claim bonus is very important for owners who are very responsible drivers.
NCB is a discount on premiums that is offered by every car insurance company.
If you have not claimed any insurance on your car during the insurance policy period then the owner is eligible for NCB during the policy maturation period.
NCB can decrease your premium amount considerably if you are a responsible driver.
Cross Check Every Detail
The final point is very simple. You got to compare your current insurance plan with all other companies in the market.
You need to read documents’ fine print and other hidden terms and conditions.
You can’t trust your broker or agent because he is just pushing the plan on you.
Cross check every single detail before you make a final decision.
If you keep in mind these 7 easy tips then you can save a lot of money while renewing your car insurance policy.