you may want to know why your motor insurance premium is expensive. we all know that its necessary expense to guide you and your car, there are various ways to make it cheap than how it is.
The ever-increasing inflation rate has forced all of us to cut corners wherever necessary in order to keep up with our usual expenses, our vehicle and it’s maintenance is important. Other costs are usually attach to the vehicle which can not be eliminated, such as; fuel, servicing, and motor insurance are unavoidable. Motor insurance has been a legal requirements that ever vehicle owner has to follow. Aside from being a legal requirement, motor insurance is a wise decision to guide one of your expensive possessions.
Accident are no longer rear these days, but motor insurances protects you from the cost related with them. The third-party insurance cannot be avoided because it’s a legal requirement. New car owners are required to one year comprehensive+3-year TPI policy at the time of buying. This implies that the owner will have to buy a standalone own damage policy for the 2nd and 3rd years. While motor insurance is there to guide and your cars, there are various ways to make cheap.
Reasons why motor insurance premium is expensive.
Using the NCB inefficiently
NCB which means (no claims bonus), is a key future present in your car insurance policy, this does not only help you save money but also helps in driving safely. The NCB can assist you to get as low as 20 percent discount on your first year, a 25 percent on the second year, 35 percent on the third year and a 45 percent discount on the fourth year if they employ no claims. You can risk out this discount and end up paying much premium if you do not make use of the no claims effectively. lots of clients are not making proper use if their NCB that is another reason why your motor insurance premium is expensive.
Literally vehicle damages are unavoidable once it’s moving on the road. However, make sure that you don’t file a claim for unserious damages such as, bad tire, poor functioning brakes and other minor damages, if you do so, you will lose your entire accumulated NCB, which ends up costing you more than it suppose to be, aside from that, if you change vehicle, remember to allocate your claim bonus to the new one if you want to keep benefiting from a lower premium.
Buying insurance from a dealer in a rush
Dealers often gain from your eagerness to start riding your brand new car home as it arrives. Most cars owners has for long receive car insurance as part of the package. But we’d want to ask you to keep exciting a little longer and set aside some terms for insurance research. This will have a long time impact since it’s the critical component of your purchase; therefore, don’t buy the first deal you come across. Dealers have less understanding about insurance because it’s not their main focus. They only work with a few insurers, which tends to give a limit to their subject matter expertise and your options. In addtion, they tend to benefit from the collaboration as a third party so they may want to offer you deal that isn’t cheap as you may expect.
Not shopping and comparing prices online
this is another reason why your motor insurance premium is expensive. The digital shift is visible in multiple ways across all industries-insurance is no exception. Because auto insurance is required, Covid has made its online purchase as a convenient and protected means of payment. Purchasing auto insurance online has extended its advantage beyond this. Buyers have access to various prices at their fingertips, this allow them to budget enough money and go for right choice. Furthermore, an online distribution channel is more cost-effective for the buyer and the seller, lowering the policyholder’s premium.
With These factors brought to you, what do you have to say regarding to motor insurance premium?