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Motor Insurance
Oct 15, 2023

Increasing Vehicle Price May Empty Your Wallet, But Not Your Motor Insurance

The rising prices of vehicles have become a hot topic of conversation in recent years. Many people are struggling to afford the cost of buying a new or used car or bike. There are a variety of reasons why vehicle prices have increased, including supply chain disruptions, a shortage of computer chips, and higher demand for vehicles due to rise in income levels for many individuals. In addition to the price of the vehicle itself, many people are also concerned about the cost of motor insurance. Fortunately, there are ways to save on the policy, even if vehicle prices continue to climb.

Why Motor Insurance Is Getting Costly

While vehicles are getting costly, their impact is also being felt on the cost of vehicle insurance. It's important to understand why insurance rates for vehicles are on the rise. One of the main factors is the increased cost of repairing or replacing vehicles. As vehicles become more complex and feature advanced technology, the cost of repairing or replacing them increases. In addition, there has been an increase in the number of accidents caused by distracted driving, which has led to higher insurance claims. Insurance companies pass these costs on to consumers in the form of higher premiums.

How To Save On Insurance?

You can save on the policy you are looking for with the help of the following tips:
  1. Research and Compare

One way to save on vehicle insurance is to shop around and compare quotes from different insurance providers. It's important to get quotes from multiple providers to ensure that you're getting the best rate. Many insurance providers offer price deductions for safe driving, multiple policies, and other factors. Comparing quotes offered by different insurers provides you with an opportunity to select the best deal possible.*
  1. Go for a voluntary deductible

Another way to save on insurance is to increase your deductible. A deductible is defined as the amount you are required to pay before your insurance coverage kicks in. This amount is paid from your pocket. Deductibles are put in the policy by insurance companies to discourage policyholders from filing claims for minor damages. Increasing your deductible allows you to lower your monthly premiums. However, it's important to make sure that you can afford to pay the higher deductible if you need to make a claim.*
  1. Maintain a good driving record

If you're looking to save on insurance, it's also important to maintain a good driving record. Insurance companies provide lower premiums as an incentive to safe drivers. By avoiding accidents and traffic violations, you can keep your insurance costs down. Getting in touch with an insurance agent can help you understand what factors contribute towards a good driving record for the insurer.*

Additional Ways to Reduce Your Premium

Apart from the tips mentioned above, you can take a note of the following ways as well to reduce your premium:
  1. Bundle your policies

Many insurance providers offer savings to customers who bundle their auto, home, and other types of insurance policies. Bundling your policies might help you in saving money you spend on each policy.*
  1. Go for an economical vehicle

Another way to save on insurance is to consider the type of vehicle you drive. High-end vehicles are expensive, thus cost more to insure than others. For example, sports cars and luxury vehicles typically have higher insurance rates due to their maintenance cost and the cost of their parts. By choosing a more practical vehicle, you can save money on insurance as the maintenance cost is relatively lower and spare parts can be easily procured if required.* It is important to note that something like add-ons, which enhance the motor vehicle coverage, also increase the price of your policy. Different insurers have different pricings for the add-ons they offer. When you include one too many add-ons in your policy, the price of the policy suddenly escalates. Often times, many of these add-ons go unused. First understand which add-ons you wish to include in your policy. Select only those add-ons which benefit you. If there are any unnecessary add-ons in your policy, remove them to save money.

Conclusion

The rising prices of vehicles have made it more difficult for many people to afford a vehicle. However, by following the steps mentioned above, you can save on the policy you are looking for and safeguard your vehicle from unfortunate mishaps. There are many strategies you can use to lower your insurance costs. By taking the time to explore your options and find the best deal for your needs, you can make the most of your vehicle without breaking the bank. You can take the assistance of motor vehicle insurance to see how much a policy would cost as per your needs.   *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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