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5 Effective Tips to Compare & Save on Car Insurance Premium

Car insurance; Shutterstock ID 569376109

Motor insurance is mandatory for every vehicle registered in the country, be it a commercial or a private vehicle. It ensures a financial safety net in case of contingencies like an accident or even for third-party liabilities.

However, most people tend to overlook the importance of buying an insurance cover. The primary reason for negligence is the cost of such plans. They end up buying the cheapest plans that do not offer adequate coverage. But you should not ignore buying a car insurance just for the cost associated with it.

Here we have compiled five tips that will help you to buy car insurance plans while saving on premiums.

#1 Look around when you shop

Car insurance is available for purchase in offline or online modes. While offline mode involves a lot of going around different insurance offices, an online search can be conducted as per your convenience. When you buy car insurance online, you have myriad choices to choose from. Moreover, the intermediaries, i.e. the agents are eliminated, and you can buy your policy directly from the insurance company.

#2 Select adequate coverage

It is a very tricky decision for most insurance buyers. The ideal choice for one individual might not be the same for others. Since the minimum requirement by law is 3rd party car insurance, it is available with all car insurance policies. The adequacy for coverage comes in deciding which add-ons you should purchase when opting for a comprehensive insurance plan. By comparing similar coverage across different insurers, you should finalise the right insurance policy for you. You can avail comprehensive as well as third party car insurance online.

#3 Savings in premium

You do not want to end up paying a higher premium amount when the same coverage options are available at affordable prices. When you purchase car insurance policies online, you end up saving big by selecting the right blend of coverage and cost. An online car insurance calculator is one tool that facilitates a hassle-free comparison with different combinations of add-ons and base plans for your car.

#4 Opt for higher deductibles

One effective way to save premium is opting for a higher deductible component. A deductible is that portion which the policyholder has to pay before the insurance coverage kicks in. There are two types of deductibles – compulsory and voluntary. As the name suggests, the compulsory deductible is similar for all policyholders, whereas opting for a voluntary deductible will help you to save your premiums. Voluntary deductible is advisable for those individuals who are confident that they can bear a significant portion of the claim in case of an accident.

#5 Make an informed decision

A car insurance is a crucial safety net to prevent any uncertain financial loss due to accidents or damages to your car. When you compare the various plans from insurers, you get a better understanding of the different insurance plans and their features. Thus, it aids in better and clear decision making.

To conclude, it is useful to compare the various plans and select a suitable alternative. It would be a profitable decision to consider the policies that offer the best coverage at an affordable premium. Finally, make sure you compare the available policies at hand based on its coverage, benefits, features, etc. and enjoy the savings in your premium.

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