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Steps To Purchase A Car And Auto Insurance Policy Without Spending Over Your Budget

A vehicle is an essential addition to our daily lives. It can provide independence and convenience in our day-to-day lives. But this convenience often comes at a steep cost. With the rise in fuel prices and maintenance costs, a vehicle has become an expensive commodity.

As a result, it is critical to plan for specific vehicle expenses, which can help us save money in the future. In this context, car insurance is important since it is mandated by the law and is recommended for several safety reasons. Like everything, it is better to save money while buying an insurance policy. Why pay more if you get the same benefits for less? This article will highlight certain factors that can help you save money the next time you decide to buy vehicle insurance.

Go for a comprehensive vehicle insurance policy

There are 2 types of vehicle insurance policies offered by insurance companies- a third-party and a comprehensive insurance policy. It is mandated by law to have at least a third-party insurance policy, and generally speaking, there are many in the market to choose the cheapest third-party car insurance policy. Still, it is better to opt for a comprehensive insurance policy as it is much more affordable and safer in the long run.

To better understand, you must acknowledge that a third-party insurance policy offers almost negligible coverage value. In the case of an accident or even regular repairs and maintenance, it  will cost you much more than what it will cost you to get a comprehensive insurance cover. Therefore, getting comprehensive insurance coverage is essential because doing so will always result in savings.

Be prudent while choosing add-ons

Add-ons are a great feature that can tailor the car insurance policy to your specific needs, but you must exercise caution when adding certain add-ons to our existing vehicle insurance policy. Because it is easy to overdo, and unnecessary add-ons can result in a much higher premium rate.

Hence, it is wise to ensure that you understand what you require regarding add-ons and only choose the required ones to keep your premium rate reasonable.

Modifications should be avoided

Fancy modifications to the vehicle might look good in the movies. In real life, they could be just superfluous addition to the car. Modifications like quicker acceleration and adding a sporty suspension will lead to higher premium rates since, according to the insurance company, these modifications make the vehicle more prone to accidents.

Cosmetic modifications such as sporty fins and fenders and a sporty paint job with luxurious interiors make the vehicle more vulnerable to theft and unwanted attention, resulting in higher premium rates. Also, modified cars are much more expensive to repair in the case of accidents and mishaps.

Install anti-theft devices

Anti-theft devices can be beneficial for your vehicle, and they can help you get a better deal on your insurance premium. When you install an anti-theft device in your car, it becomes safer, and the insurance company will recognise it and offer a significant discount on your premium rates. It must be mentioned that one should only install those anti-theft devices officially recognised by the Automobile Research Association of India to get good discounts from insurance companies.

Opt for higher deductibles

Deductibles are the amount you promise to pay in the event of an insurance claim. In other words, the insurance company will partly pay for the repairs in the event of an accident. The claimant is supposed to pay the predetermined deductible amount from their pocket. Higher deductible amounts can lead to lower premium rates, so if you are confident in your driving skills, it is better to have a higher deductible amount.

No Claim Bonus

A “no claim bonus” is the bonus the Third party insurance company offers you if you have not made any insurance claims during the policy year. Although it does not affect the current premium rates, insurance companies offer generous discounts to people who have not made any insurance claims during renewal. So it is a good idea to drive safely in the first place and not make frequent claims for minor repairs to the vehicle.

Compare policies

You are advised to buy vehicle insurance policies online after detailed research. Getting insurance online is simple and straightforward, and you also can access tools, such as online premium calculators, that you can use to evaluate various insurance companies. You can easily compare the premium rates they offer to find the one that best suits our needs and budget.

In conclusion

With the help of the tips mentioned above and comparison tools, you can significantly reduce your car insurance cost and get a premium suitable for you in the long run.

Shailendra Kumar

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