- Date : 20/09/2023
- Read: 3 mins
Save on car insurance renewals: No-claim bonus, right IDV, credit score benefits, discounts, avoid modifications, early renewal, and online options can cut costs significantly.
Car insurance is what health insurance is for your body. Having a car insurance is a must, but paying a high premium for it is not. Here are ten car insurance renewal tips to help you save money.
Highlights:
- Save 20-50% for car insurance renewal as a no-claim bonus.
- Choose the right IDV so that you don't pay a higher premium.
- A high credit score can give you a better premium rate during negotiation.
1. Only opt for what you need
Consider dropping collision or comprehensive coverage for your old car with depreciated value. Remove unwanted add-ons from your policy. For example, some car manufacturers provide roadside assistance. Opt out from such add-ons to save money on your car insurance renewal.
2. Research and compare
Research and compare rates from different insurance providers to learn the average premium for your vehicle type, age, and location.
3. No-claim bonus
You can get a bonus on your insurance premium if you don't make a claim on your previous policy. Don't claim for minor repairs to qualify for the bonus. The no-claim bonus can increase by up to 50% by 5th renewal if no claims are made.
4. Higher deductible, lower premium
You can lower your premium by agreeing to pay a higher deductible in the circumstance of a claim. However, ensure you can afford the higher deductible should an accident occur. This option is advisable for old vehicles.
5. Avail discounts
Insurance providers offer discounts for safe driving, loyalty, and multi-car policies. Inquire about possible discounts and bundle your insurance for maximised savings.
Also Read: Simplifying the transfer of your car insurance
6. Maintain a good credit score and clean driving record
A good credit score makes you a less risky customer for insurance providers. It can give you a better rate during the negotiation. Furthermore, insurance companies tend to lower rates for drivers with clean driving records.
7. Modifications cost more
Adding a car wrap for aesthetic improvement can raise your premium. To prevent higher costs, it's advisable to refrain from these modifications.
8. Choose the right IDV
Insured Declared Value or IDV refers to a vehicle's market value minus depreciation. It's the amount you receive in case of total loss or theft. A higher IDV means a higher premium. Choose the right IDV so that you don't pay a higher premium.
Also Read: How to choose the right car insurance for your needs
9. Renew early
Some insurance providers offer early renewal discounts. Renewing your policy before it expires could save you money.
10. Online renewal
Renewing your car insurance online can save you time as well as money. Many insurers offer discounts for online renewal.
Using these tactics, you're preparing for a successful negotiation that could save you a lot of money when renewing your car insurance. Your smart choices can pay off.
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