When you shop for a suitable car insurance policy, it is imperative that you look around and identify one that matches your requirements. However, not many car owners today spend too much time in searching for an appropriate policy. A car insurance policy is something that affects you financially for an extended period of time. So, it is important that you make a well thought-out decision on this front.
Here we have put together some of the most common reasons that prevent you from zeroing in on a suitable policy.
- You are not comfortable with change
Many a times, car owners get so comfortable with an insurance provider that they prefer to continue with the same policy year after year. You may think that your insurer is providing you a good deal, but if you look around, you may come across policies from other insurance providers with similar coverages at a fraction of the cost!
So, you should first identify whether you are getting a good deal on your premium and also assess the customer service and claim-settlement process of your current insurer. In this regard, it is essential to keep abreast of the changes in the insurance market. Once you have identified that you could get a better deal elsewhere, it is wise to switch immediately. On the other hand, if research has shown you that you already have one of the best deals out there, then you can continue on the same insurance policy and make another assessment the following year at renewal time.
- You haven’t negotiated for discounts
When you are investing on car insurance, a little research will show you that there are ample opportunities to bring down the premium while the value and benefits provided by the plan remain the same.
For example, all insurance providers offer a No-Claim Bonus to policyholders who declare claim-free years. The NCB can amount to a considerable value, i.e., a discount of 20-50% on the premium for subsequent years. In addition to this, some insurance providers also take into consideration the age and occupation of the applicant while providing a discount on the part of the coverage that corresponds to Own Damage. Such discounts are applicable based on the make and model of the car as well. You need to look out for such discounts and claim the ones that you are eligible for.
- Your policy has expired
In case your car insurance policy is on the verge of lapsing, you should keep track of the dates and ensure that there is no gap between the date of expiry and the renewal date. If you have gone past the end date, chances are that you will lay your hands on the first policy that comes your way, without proper research.
It is wise to set a personal reminder of your policy lapse date, and renew the same before the expiry. In some instances, insurance providers charge higher premiums or even reject renewals for policies that have expired months back. Policies that have lapsed beyond 90 days will also lose their accrued NCB. Hence, the smartest way to get the most competitive rates on your car insurance is to renew it before it lapses.
- You have not done enough research
Taking the advice of your friends and family in the matter of car insurance is not a great option. In fact, you are the best judge on your car insurance needs. It is vital to do as much research as possible before you identify the policy that suits you best. You should also take into account the reviews on the insurance provider and the efficiency of their customer service.
Today, you are able to compare policies easily through neutral third-party financial websites, and make a calculated decision. You can also apply for a car insurance through these websites and benefit immensely.
- You have not been successful in identifying a rate balance
A good car insurance rate should not make you feel like you are paying through the roof for the coverage you get. It should also provide you confidence in the knowledge that you can pay for your deductibles after an accident.
In summary, your mission should be to find a rate that instills in you a sense of mental and financial security. The secret to getting the best deal on your car insurance comes down to good research and finding the most appropriate insurance provider.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017