Saturday, 1 December 2012

Auto loan and car insurance: Tips for curtailing your cost

Getting a car these days is an expensive affair. But getting an insurance cover for your precious asset is becoming a luxury, owing to rising costs. Over the last 6 years, the cost of car insurance has really gone up. Some people who cannot afford higher costs have altogether given up buying an insurance policy which can prove to be a fatal mistake in the future. There are ways to reduce your cost when you are taking up a policy. One of the basic things any layman should do is to go through the internet and get himself familiar with all the rules, tips, tricks and other vital information about these policies. 

You must also remember that there are a higher number of sources offering you an auto loan or insurance. The increase in competition has, to an extent, worked to the advantage of the average client who can now look up for all kinds of deals and choose the one which he finds the best. Nevertheless, here are some tips which will help you understand a bit about the current trends in the industry:

i.               Third party insurance may not be ideal: Third party car insurance has, in general, helped those people who do not have enough cash to buy a comprehensive policy. Even though, third party policy has been one of the less expensive policies, the latest trend says otherwise. In recent years, insurance companies have had to shell out huge sums of money to third party policy holders, all thanks to less vigilant drivers. Hence, the cost of premium for this policy has gone up quite a bit in recent times. Furthermore, if your driving record is not a very impressive one, your costs may further escalate. So, it would be imprudent of you to take up third party insurance without giving a thought to the comprehensive policy. The difference in their costs has really become smaller.

ii.              Costs differ with different companies: Whether you are looking for auto loan or for auto insurance, it is advisable to go through the policy norms of different insurers. Depending on their own historical records, some companies may charge you higher premium for a particular type of insurance while another company may charge you less for the same. Internet gives you this facility to check out quotes from different reputed insurers and make thorough comparisons before putting your money into it. It is said that you should always test the depth of water with one foot before sinking both your feet into it!

iii.                Learn to drive carefully and safely: When you are taking car insurance, the company will always like to test your driving skills. In fact, now-a-days, there are technological gadgets which can reveal your skills through electronic machines. Insurance based on telematics rely a lot on this technology and thus charge different premium amounts to different drivers. If you are found to be a high-risk & accident-prone driver, then your cost will be in the higher range. Thus, by being a good and patient driver, you can curtail your insurance costs apart from ensuring your personal safety.Visit our website - helping you find more additional tips and advices.