We all know that it is mandatory to buy car insurance if you own a car. However, due to increasing inflation, it is becoming expensive to buy a car insurance policy with extensive coverage. We all try and find alternatives to save money, and there is no exception with car insurance. There are various terms and conditions we need to understand before buying car insurance. For example, you should have third-party liability insurance that takes care of any external damages, as a part of your car insurance. You can also have a different policy for the same.
Therefore, we need to find an alternative to own a car insurance policy that not only helps you to be on track with the law but also be affordable.
Here are the four tips you need to remember to avail an affordable car insurance:
- Raise the deductibles
The deductible is the value that you are willing to pay from your pocket in case of an accident. There are two types of deductibles:
The mandatory deductible is your compulsory contribution when you file a claim.
Voluntary deductible is the amount you voluntarily pay to during an insurance claim.
If you are planning to reduce the premium, increasing the voluntary deductible will do the job.
One thing you need to understand is, due to competition, there are a wide range of car insurance policies available. If you want to know the right one for you, you need to first be sure of your requirements. If the plan you buy does not match your requirements, you can explore other options. Reading up on the policy wordings will help you make the right decision.
- Insurer’s reputation
You must check for your insurer’s reviews, claim settlement ratio, and read about customer support. One of the important aspects of selecting the right insurance company is by checking the claim settlement ratio. The settlement ratio is the number of claims the insurance company clears in any financial year. Claim settlement ratio should always be high. The higher the number, the greater are the chances of your claim going through.
- Cost against coverage
Always try to find a balance between the insurance premium and coverage. Affordability, in terms of any insurance policy, needs to be looked at from the perspective of availing appropriate coverage at a reasonable price. It does not mean you must buy a cheap car insurance policy. This way, you can cover yourself against any major riskswithout spending a lot of money. A car insurance calculator will help you determine the premium costs.
Car insurance is a way of safeguarding yourself from the financial trauma you might go through during accidents or thefts. Affordability can be an issue for some people. Therefore, before buying affordable or cheap car insurance, you should take into consideration various factors put forth on the list. Reading up on your policy before signing it is essential. Make sure you invest in a policy that provides you enough coverage along with an affordable premium.