Taking an insurance policy when you buy a car is something that you need to do regardless of whether you feel you need it or not. That is why there are a large number of insurance companies pitching their products to you when it is time to take a new policy or when your present policy gets due for renewal. It is very easy to get hustled into taking a particular policy on the basis of certain benefits or schemes explained to you, and later realise that there were better options available at cheaper rates, or that the policy you chose does not adequately cover your requirements. Hence a thorough study is required by you before you make your choice, and there a few tips that you would do well to follow while choosing an automobile insurance policy.
- If you are taking the insurance for a new car, then make the insurance selection a part of your car buying decision. The reason for this is that some cars have lower fatality rates and therefore insurers charge less premiums if you purchase those particular cars.
- A quotation doesn’t cost you any money. So explain your needs to the agent or insurer who has approached you and get the best quotation that they can offer. You should take as many quotations as possible and then make a shortlist, from which you should make the final selection.
- Get into the details of what actions you can take in order to get lower quotes from them, and do the cost – benefit analysis of carrying out these actions. For example, an anti theft lock in your car might fetch you a better theft and fire insurance quotation. No claim bonuses or loyalty discounts could also be availed if you have taken insurance policies from them before.
- Try to strike a balance between your car’s age (and value) and the various types of coverage you can choose from. The benefit of a claim should be at least equal to or higher than the present value of the car.
- If you also need to take home insurance, then speak to the auto insurer regarding home insurance quotes, and they will be happy to bundle both policies together and offer you substantially higher discounts.
Apart from the above easy steps you can take to lower your car insurance, you should keep in mind that the quotation you get would also depend on other factors like the local insurance laws, if any, your own driving record, and the particular make of car you buy.
