Car insurance is necessary not only for the safety of the vehicle or driver but also to meet the legal aspect of the motor vehicle act under which it is made compulsory for every car owner. Usually, with the time and depreciation of the car, the insurance premium gets reduced. However, in some instances, one must understand that instead of going for a low premium, he may have to pay a higher premium than before also. There are some mistakes many buyers commit while having insurance, and due to which, they have to pay a hefty amount when it comes to renewal.

Here are car insurance mistakes that one must avoid

  • Poor driving record: If you want to have car insurance at a low premium, you need to prove that you are a careful driver so that the company can offer you insurance at a low premium. This can be proved with the help of the driving record history, which every insurance company manages and follows while providing the quote for the renewal of insurance plan for the car.
  • Minor claims: if you want to make the maximum out of the insurance you have paid in the last year and go for the minor claims also it can prove you costly next year as you may not be eligible for the no claim bonus and also have to pay a higher amount of premium. Hence you must avoid going for minor claims, which can be ultimately costly for you only.
  • Driving experience: If you are a novice, the premium of the car may be higher as the company considers it as a risk profile. If you are a veteran driver without any accident record and holds good credit, you can have a better insurance rate. Hence you must develop a good habit of driving; reckless driving can be costly not because of more chances of accident only but also in terms of premium for your car.
  • Coverage level: The more coverage of the car you want to go, the more premium you may have to pay. With time, the value of the car is usually goes down; but in case you go for a higher amount, you may end up paying a high premium which is a bigmistake you must avoid. In many cases, people go for more coverage; they think that more coverage will help them get more insurance claims, which is much far from the truth. Due to this myth, people buy a plan with broader coverage, which proves costly for them in terms of Insurance Premium.
  • Discount options: while going for car insurance, there is also an important feature which is called discount. With the additional payment of a little amount, the buyer can have a better discount. If one prefers to have more discount than a specific level, he may have to spend more on premium amount also. Hence one can see that the premium of the car may be increased this year than the last year.
  • Insured declared value: This value of the car is the base for the policy as well as the premium. The more is the IDV; more is the premium one has to pay. Many of the buyers commit a mistake here by opting for a higher IDV amount, which leads them to pay a higher premium. The company offers a range of prices from which one needs to select a specific price. If one chooses a moderate value, he can save a good amount on insurance premium.

One can focus on the points mentioned here to have a good insurance plan at a good value. These points can help one save from paying an excessive premium.