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5 Tips to reduce Motor Insurance Premiums

Prior to buying a vehicle, most of us spend a lot of time and research in choosing the right one for us, the right accessories with the best price that is out there. But, what we don’t realise is that the process just doesn’t end with choosing the vehicle. One of the major factors we often tend to ignore when we buy a vehicle is the motor insurance that keeps your vehicle protected from any liability. Most people view it as an additional and unnecessary expense, but what they don’t realise is that it keeps your beloved vehicle protected and provides you with financial aid, in case of a mishap.

One of the major reasons why people find motor insurance policies expensive is because of the premium costs. But, there are ways in which you can considerably lower the rates of your motor insurance premiums so that it doesn’t hurt your wallet. Premium rates depend on a variety of factors like the make, model, and age of the vehicle, etc. By making a set of right choices, you can have an insurance policy that is both affordable and provides the best coverage for your motor vehicle.

Here are some tips to help reduce your motor insurance premium costs.

  • 1. Keep your options open

    When it comes to buying insurance, most people are not aware of the fact that unlike the prices for cars, insurance rates are not similar with different insurance providers. So, it is always a safe bet to try out different insurance providers and get quotes from all of them to just get an idea of what will be the ideal range of premium price. This is not just for first-time car owners but also holds good for existing car owners whose insurance is about to expire. You can look out for options too before your renewal time is up and get the best policy with the most ideal available for you.

    2. Compare Premiums

    Thanks to technology, all insurance providers have set up shop online, which has made purchasing insurance easier than ever. This also means that all of us not only have easy access to insurance policies but also have a chance to check out the prices of all the insurance policies out there. In addition to this, some insurance providers have also put up an insurance premium calculator along with a comparison chart that can help you get an idea of the premiums beforehand. With this made available, you can check out the prices of all the premiums and compare them in terms of policy features, coverage, and premiums and choose the one that you think is best.

    3. Choose the right Coverage

    One of the common mistakes that most car owners make is either get their motor vehicle over-insured or under-insured. In case of choosing motor insurance policies, choose the features that you think you will absolutely need and leave out the rest. Further to this, try to avoid add-ons, unless you feel they are absolutely necessary. Your car insurance premium rates rely on the type of policies and the add-ons you opt for, so make a smart choice by choosing features that are mandatory and useful for you and lower your car insurance premiums to an extent.

    4. Avoid extras

    Similar to add-ons, most first-time car owners opt for a lot of additional fittings in order to ensure that their vehicle stays protected. This will lead to them getting their vehicle all the possible extras that are out there to ensure maximum protection. But, what they do not realize is that this will also be a key factor in determining the rates of your motor insurance premiums. Car insurance premiums rely upon a set of factors like vehicle value, age of the vehicle, type of fuel, additional fittings that are not a part of factory fittings, etc. So, try to avoid additional fittings unless absolutely necessary and reduce a chunk of your premium rates.

    5. Don’t make small claims

    One of the common mistakes that people make is to claim insurance for even smaller issues in the hope that insurance will cover the expenses. But, what they don’t realise is that regardless of whether the claim is smaller or bigger, any claim you make, you will lose out on the opportunity to obtain your no-claim bonus, which is a small amount of reward for your good driving skills, that the car owners receive for every no-claim year. This will also lower your car insurance premium to a maximum of up to 50 percent.

In addition to this, some insurance companies also provide a discount or concession to car owners of specific professions like doctors, teachers, lawyers, etc. Do ensure to check all available plans and concessional schemes before committing to one.

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