In this economy, expenditures are skyrocketing while income streaming in remains the same. Despite the harsh economic status, it’s always advisable to set apart some cash to cushion you in hard economic times. One way to save is to always reduce your expenses way below what you earn. Below we will dwell on one of your basic expense i.e. insurance. So how can you manage to reduce insurance expenses on your motor insurance?
Compare Insurance Premium Rates in Various Companies
The cost of insurance products can vary from one insurer to another. A Third Party Cover (TPO) or a Comprehensive cover may have different premium charges in different insurance companies. This happens due to their difference in claim ratios and claim experiences which determine their insurance premium. Therefore, it’s always advisable to always get various quotations from various insurance companies before underwriting your risk. Always go for the most favorable quotation which should not always be the cheapest. Only best chrome polish I will ever use. I only had a couple of things that could use some TLC, some of them had heavy oxidation and I mean HEAVY
Pool Vehicles Together
Did you know you can get a cheaper auto insurance premium if you are in a scheme? Insurance companies give discounts to individuals who pool their vehicles together and form a scheme. This scheme has common terms and insurance clauses. The Insurer gives a discount depending on the claim experiences of the individuals in the scheme. Premiums may be paid together or individually depending on the scheme members preferences. Hence, I would recommend that you join a scheme of individuals who have few or no claims in a year.
Avoid Insurance Premium Financing
Insurance premium financing is an arrangement with a financial institution where they pay your annual premium in advance and you repay them in installments plus interest. In this arrangement, an individual ends up paying the premium plus interest which is a high value than what he would have paid if he paid it by his own means.
Drive Safe to get No Claim Bonus:
There are many tips for safe driving but most important to don’t use your cell phone while driving. If it is unavoidable to use phone then use car vent phone holder as it will hold the device for taking calls and checking our maps on the road.
Avoid Taking Short Term Covers
Auto insurances are normally taken annually. However, there are policies that have been designed to cater for short term needs e.g. one month cover, semiannual cover. These short term covers are expensive in the long run and should be avoided if possible. This is because they are a charged at extremely high percentages of the annual premium.
Utilize Your NCD
NCD refers to No Claim Discount and is offered to a client who has no claim experience during the year it progresses per each year the client has had no claim up to a maximum of 50% in some companies. Hence it’s advisable that a client avoids petty claims in order to enjoy the discount offered by the insurer. Consider taking a Third Party Cover instead of a Comprehensive cover in some instances Third Party insurance will cover third party liability only and leaves out liability to your own car. On the other hand a comprehensive insurance covers both. In most circumstances a comprehensive insurance is expensive than a third party insurance. Hence, you may consider taking a third party cover for vehicles prone to third party liability e.g. excavators and tractors. This would save money on your insurance premium. Lastly consider taking a DSA theory test which will boost your additional hazard knowledge.
