If you own a car, you need a car insurance. That much is a given. The process in of itself can be long and frustrating as well. But the same is the case for renewing as well. All that being said, if you are able to play it carefully and take your time with it, not only could you save money, but get additional benefits at the same price you are paying. With these tips in mind, be sure to hold onto them when you go and renew your car insurance.
Compare Car Insurance Policies
You may be happy with the policy that you have right now and that’s alright, however it never hurts to compare other policies with yours. Now before you start thinking it’s a tedious job that’ll take a lot of time, there’s actually a surprising amount of sites that’ll compare policies for you hassle free and make the process easy to follow and do.
Read The Fine Print
This one is a given, but not a lot of people do this which makes this actually a smart move to make. It’s more than likely from us skipping over Terms & Conditions documents so much that we skip over this. But we should not be skipping over our own insurance policy.
You want to be reading through it all as even when the insurance broker explains things, they’ll likely provide an overview and won’t go into details unless you ask. This requires you to read through the finer points of the policy as a policy may sound appealing on the surface but may have hidden costs and charges under certain conditions. You want to be aware of these things for the future.
Figure Out The Worth Of Your Car
For this tip, you are going to need to do some math. Yes it is quite a pain, but doing this math now is going to save you a lot of money in the future. Especially if doing the math now saves us from massive premiums.
In this particular instance, you want to be calculating your vehicles fair market value before you go and renew your car insurance. The reason for this is due to depreciation. It’s an accounting term that means that the longer something is in use, the value of the item drops.
The thing is you may run into a scenario where your fair market value after depreciation has dropped by half or perhaps even more. In that sense, you can save a tonne of money on insurance and premiums if you insure your car at this lower rate as opposed to it’s original rate. Of course this will require some negotiation with your insurance broker, but if you can pull it off then you can save a lot.
These tips are small things that typically don’t require a lot of time to perform up front. Definitely consider them as you can save money in so many ways by looking carefully at other policies, reading the policy’s fine print, and figuring out the value of your car before renewal. Try it out!