Tricks To Reduce Car Insurance Premium For Old Cars

Posted on: December 14, 2020, by :

Many of us may have an old car or a vintage car that we do not want to let go of, for sentimental or other reasons. Even though it is an old car, it is wise to get it insured as per the law. You are advised to avail of comprehensive insurance policy to protect you in case of theft or damage to your car. When it comes to insurance, you may wish to cut down on your investment to save money. Here are some tips and tricks with which you can reduce your car insurance premium and minimise your expenditure.

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Ways To Reduce Your Car Insurance Premium For Old Cars

The following are the ways in which you can reduce your car insurance premium for old cars:

1. Make Sure To Claim No Claim Bonus

If you do not raise any claim during the policy tenure, you get a discount at the time of renewal as a reward for cautious driving. This discount is known as No Claim Bonus or NCB. It is cumulative in nature and increases with the years. Therefore, if you make sure to claim NCB when renewing your policy, it will bring down your insurance premium.

2. Renew Your Policy On Time

When you let your insurance policy lapse, you could be faced with a fine that is way higher than the premium amount you would have paid if you renewed your policy on time, before its expiry. Thus you are advised to always renew your policy on time to save the risk of expenditure.

3. Buy Insurance Online

Buying an insurance policy online has many benefits. The main one is that you are able to compare different policies simultaneously and find one with the lowest premium alongside all the coverages that you want and require. You are also able to thoroughly research the different insurance companies and policies beforehand to ensure that you pick one that is not only easiest on your finances but best for your needs overall.

4. Stick To One Company

When you stay with one insurance company for many years, it improves the rapport between you and the insurance company and opens the door for you to join various loyalty programmes and access different discounts.

5. Avoid Unnecessary Claims

There are two advantages to minimising the number of claims you raise. It is best to avoid raising a claim for small scratches or other small damages on your car and save it for grave situations such as a big accident or an incident of theft. Why is that? If you make small claims you will have to sacrifice your No Claim Bonus over them, which may not be worth it. Secondly, raising a large number of claims may prompt the insurance company to view you as a risk and raise your premium amount.

Takeaway

If you follow these tips you are definitely going to save some money when it comes to the premium cost on your insurance policy for your old car. While you may not feel it is necessary on an old car, make sure to purchase insurance nevertheless as it is immensely useful and mandated by law.