Have you bought a new car? Is your policy due for renewal? Are you looking for a car insurance policy that checks all the right boxes but at the same time is light on your wallet? If the answer to either of them is a yes, you have come to the right place. Selecting the right car insurance coverage does not require you to spend a lot of money but instead, smart buying does the job. One critical step in this smart purchase is the evaluation of the car insurance
plans. With a plethora of insurance policies to choose from, car insurance premium comparison can get confusing. This article lists down a few crucial steps to get yourself a budget-friendly car insurance policy -
Opting for third-party insurance covers
There are two types of car insurance plans you can purchase - third-party and comprehensive policies. While a third-party policy covers against liabilities due to third-party, a comprehensive policy includes the cost of repairs to your vehicle along with these third-party liabilities. Since comprehensive car insurance offers broader coverage, it naturally costs more than a third-party policy. Thus, you can lower your car insurance premium by opting for a third party car insurance
. However, when choosing the car insurance premium, comparison needs to be made between these two types of policies. Not everyone needs to purchase a third-party policy. If you have an old car, you can save on the premium by opting for this insurance cover. On the other hand, for new drivers and expensive luxury cars, a comprehensive insurance policy is a better option since the benefits make up for the price.
Raising the voluntary deductible
All car insurance policies have deductibles. Deductible is the amount that you need to pay from your own pocket at the time of claim. While a standard deductible is mandatory for all policies, a voluntary deductible can help to reduce the burden of premium. When you compare car insurance premium, the policy with a voluntary deductible clause will have a lower premium as compared to the one without it. Thus, opting for a voluntary deductible can help in the process of car insurance premium comparison. Although, selecting a voluntary deductible is not compulsory at all. Since you have to bear the cost of repairs at the time of claim, you must opt for it only if you can pay for a part of the expenses.
Avoiding unnecessary add-on covers
While add-ons increase the coverage of your policy, selecting unnecessary add-ons also increase your premium. When you compare car insurance premium, it is essential you consider the benefits offered under each. Moreover, selecting only those that add some value to the coverage is helpful since they increase the premium of your policy. For instance, a zero-depreciation add-on is recommended since it doesn’t account for the depreciation rate of your car whereas an engine protection cover is advised for those who reside in flood-prone regions. Similarly, buying such add-ons only after evaluating its cost vis-à-vis its benefit will help make a prudent choice.
Thus, when you compare the available car insurance policies, it can help you find the one that meets all your coverage requirements. If you skip this step, you might end up selecting a policy based on the premium which doesn’t offer many features. On the contrary, selecting a policy with maximum add-ons and available features will result in a higher premium without any real benefits. Thus, the comparison of car insurance plans is something that is absolutely critical and should not be skipped for budget-friendly car insurance plans. Compute premiums on our online car insurance calculator
instantly! Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.