The Indian Motors Act makes it mandatory that every car must have its own car insurance. This rule also applies to young drivers. However, drivers under 25 years of age avoid buying car insurance because it is expensive. Insurance companies usually increase insurance premiums for young drivers as they fall under high risk groups. So, if you are below 25 years old, or are a parent or guardian of a teenager, then you might end up paying higher premiums on car insurance. If you want to lower your insurance premiums, here are a few interesting tips on how you can save more.
1 - Do Your Research Well
Conduct a thorough research on various car insurance policies and companies. Some companies have websites that come with quote checking options. Check out an array of insurance providers and compare their prices. You can even ask the insurance company you have chosen to give you a reduced rate.
2 - Take in a Responsible Second/Third Driver
The risk factor plays a major role in determining the way in which car insurance is calculated. There is a hike in insurance for younger people because they are responsible for a majority of the accidents that occur. Including a driver from a lower risk group will minimize the average risk. This helps to bring down the insurance premium rates. This assists you in becoming a low risk entity and so helps you obtain a good car insurance deal.
3 - Pay the Amount in Full
You, as a new or younger driver, may feel that buying comprehensive car insurance in full is costly but it is actually advantageous for you in the long run when compared to other insurance plans. By paying in full, you avoid spending money on huge interest rates. Use a credit card with lower Annual Percentage Rate (APR), if it is not possible for you to pay in full.
4 - Don’t Depend Solely on Third Party Insurance
Young people think that buying Third Party insurances is cheaper but they do not realize that this insurance policy only covers the person you bang into and their vehicle. You may feel it is expensive but going in for a comprehensive cover, which also comprises of theft and fire, reduces your premium as you are assessed as a lower risk entity.
5 - Make a Decision after Considering All Odds
Do not give into the first insurance company you see without understanding all the repercussions it brings. Explore and check all car insurances thoroughly before signing up for one. Check out a few insurance companies online. You will understand what they have to offer and even get quick quotes. Choose the one that is most suitable for your car as well as your budget.
With these helpful tips it will be possible to bring down the costs of insurance premium even though you are a 25 year old and are driving a car. Utilize these pointers and avoid paying high policy premium amount for your car.