Mr. Sharma wanted to gift a car to his son on his graduation ceremony. After all, his son was the topper of his institute! Though Mr. Sharma decided the car which he was going to buy he wanted to the cheapest car insurance policy on his son’s car. He didn’t know how to achieve what he wanted. Do you?
You can save money on your teen’s car insurance policy if you follow some tips. Let’s see what these tips are –
- Buy a used car
While you want to buy a car for your child you should remember that your child is not a seasoned driver. Chances are that your child would learn driving after getting a car. In such a case, buying a brand new car is a waste. You should buy a second-hand car so that your child can learn and practice his or her driving skills. A used car would come cheap, have a low Insured Declared Value (IDV) from the perspective of your car insurance policy and would, therefore, have a low car insurance premium. You can, thus, save not only on the car’s cost but also on the car insurance premium. A double treat, is it not?
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- Install safety devices
Car insurance companies allow a premium discount if the car is fitted with safety devices. This is because of the fact that safety devices reduce the chance of accidents and theft. So, if you install safety devices in your teen’s car you can avail premium discounts and save on the premium cost.
- Ask your teen to maintain a clean driving record
A clean driving history goes a long way in saving premium costs. It shows that the driver is careful and the possibility of a claim is low. Insurance companies, therefore, allow lower premium rates for drivers having a clean driving record. Moreover, a clean record also earns no claim bonus which lowers the renewal premium. So, ask your child to maintain a clean driving history so that future premiums are low.
- Renew the policy on time
A car insurance policy is offered for a period of one year after which you have to renew it. If the policy is renewed on time you get two benefits. One, the premiums are low compared to lapsed plans where the premiums are high. Two, your earned no claim discounts can be used for discounting the renewal premium. If the policy is not renewed on time you might lose the accumulated no claim discount. That is why, renewing on time is always recommended.
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Never buy a car insurance policy in a hurry. Always compare the available plans before finalising one. When you compare you can find out the coverage features, promised Insured Declared Value (IDV) and the premium of various plans. Then you can weigh in the coverage and premium of different plans and choose one which offers the best features at the lowest possible premium. So, always compare car insurance before buying to ensure lowest premium rates.
- Look for available discounts
Discounts are allowed in car insurance plans for different factors. If you are a member of a reputed automobile association you get a premium discount. Installing safety features gets you a discount. You also get a discount if you choose a voluntary deductible or buy a policy online. So, when buying a car insurance policy for your child, look for the available discounts and lower your premiums.
Mr. Sharma’s friend advised him to buy a second hand car in which safety devices were installed. Both these tips saved Mr. Sharma thousands in premium on his son’s car insurance policy. He couldn’t be happier. If you also want to save premiums on your teen’s car insurance, follow the above-mentioned tips and save your money.
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