Due to COVID-19 country's workforce is now working from home, it is a good time to think about how you can save money on various matters. Here are a few ways how you can save money on car insurance during the lockdown.
India is in a COVID-19 lockdown. The Government and medical officials have made it clear that one of the most effective methods to prevent the deadly coronavirus from spreading is to practise social distancing and to stay home.
Non-essential business sectors across the nation are following this wise advice by allowing their employees to work from home, or temporarily putting a hold on work until the threat passes. Either way, this means people are driving less often than they usually do. Keeping that in mind, here are a few ways you may be able to save money on your car insurance premium during the COVID-19 pandemic.
Reduce your car insurance coverage
You can reduce your car insurance coverage to the minimum for a vehicle you are not driving. In case you do that, the good news is you will still have a mandatory third-party coverage required by the law. If there are items in your shopping cart that you did not pick, would you pay for them? Similarly, in case of a car insurance policy, pay only for the features that are useful to you at this point.
Take one of your two vehicles off the road
In case you have two cars, you think your family can manage by driving only one car, look into temporarily holding your car insurance coverage on the vehicle not needed. It is important to remember that if you choose to park one of your two cars and stop insurance on it, you must not drive it for any reason at any time. In India, it is illegal to drive vehicles without a valid insurance policy. If traffic authority catches you driving without insurance, the penalty can be severe, and it is going to impact your car insurance premium.
You can reach out to your insurance provider and find out what your options are. Taking one of your cars off the road and holding its insurance policy can save you money in the short term; however, there may be inevitable consequences for doing so, including:
- The insurer may consider you to be of a higher risk for not renewing your insurance policy.
- In case you remove comprehensive car insurance coverage, your vehicle will not be covered for damages arising due to fire, natural or man-made disaster or theft. At the same time, you will lose all the accumulated benefits like NCB.
Lower your yearly kilometre count
Another way to save money on your car insurance is by reducing the number of yearly kilometres you drive, as mentioned in your policy. If you use your car occasionally, let your insurer know you are driving less. However, once the lockdown ends, do not forget to contact your insurance company and inform them you are returning to driving the same distance as earlier. Not all insurance companies may allow you to do so; however, it is recommended to get in touch with your insurance provider to know more about the same, which will help you to reduce your car insurance premium, at least during the lockdown.
Opt for higher deductibles
Think of it this way, the higher your voluntary deductible, the lower will be your car insurance premium. A deductible is the part of the car insurance claim you must pay to get your vehicle repaired. Raising your deductible can make a difference; however, it can be used as a double-edged sword. Your financial situation should dictate the amount of deductible you select. In other words, make sure that you can afford to pay the deductible in case the claim arises.
Drop comprehensive coverage on old vehicles
If your vehicle is old than five years or more, you may want to consider removing a comprehensive car insurance cover on it temporarily. Comprehensive insurance is optional. It covers losses other than those covered by damages and loss due to theft, fire, or other calamities.
Ask for discounts
Most insurance companies offer discounts to their customers. You can also get a discount for bundling your other general insurance plans with your car insurance policy.
Shop around before renewing your car insurance
Before you settle for a particular insurance company and plan, utilise your free time and do your homework properly. You never know how much you might save until you shop around. Go online and compare quotes offered by various car insurance providers. Insurance premiums may differ with different types of car insurance policies and also with the extent of coverage they provide. Generally, no-frill car insurance plans come out to be the cheapest. As features and coverage get added to the policy, the premium amount automatically goes up. Also, make sure that you read the policy document carefully before deciding upon it, as it may include details about any hidden charges or the hike. We hope these tips do help you in saving up on your car insurance premium. If you still need advice on how to save money on car insurance during the lockdown, you can get in touch with our experts.
We are always there for you to help you be on safer grounds.
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