An insurance premium is a fixed amount which an individual necessity pays to the insurance company for a specific type of insurance purchased by him. No doubt car insurance premiums are too expensive but a smart purchase and few methods can help you reduce that premium to your affordable rate.
There are various factors that determine car insurance premiums, like, driving record, credit history, age, sex, marital status etc. In order to decrease premiums on your car renewal policy, here are top 8 useful ways that you can practice to keep your costs down considerably without making any major compromises on your policy.
Let’s have a look!
Before purchasing any renewal policy, search out for the quotes provided by different insurance companies. Car Insurance rates for different renewal plans vary company to company. It is best to opt for online as it is a simple way to compare car insurance quotes Kenya. Check out the quotes from at least top five car insurance companies in kenya and calculate the premiums using the car insurance premium calculator.
Make sure you also compare premiums, services offered, different add-on covers etc. Find the suitable one for your own vehicle. It is noteworthy that do not make price shopping. After choosing the one with reasonable rates, go for the reputation of the company in the market. You can easily review the ratings and customer experience on a number of websites. And, if you believe that the chosen company is a wise choice, you can make deal with it.
Special Discounts & Offers
Almost all insurance companies offer certain discounts to their customers at the time of policy renewal. These discounts vary company to company. Here are some special discounts that are usually given to the consumers:
Low Mileage Discounts
Some car insurance companies in Kenya offer consumers special discounts based on low mileage
For example: If you are a customer who drives the car less than the predetermined yearly mileage of your vehicle then you are eligible to avail low mileage discounts.
Discounts based on Car Specifications
There are special offers for the customers which have special safety features embedded in their car. Many insurers give discounts for air bags, antilock brakes, car alarms and more security features if present in their car. As such cars are less likely to met an accident or stolen. So if you own such a car, you can easily grab big discounts.
Apart from these discounts, there are numerous offers based on the car model, your age, students and much more factors. You can check all the discounts available for your car either on the website or can even ask your insurance agent. Grab the offers and earn profits while renewing your policy.
Opting for High Deductibles
In motor insurance companies, by increasing the number of deductibles you can easily lower your premiums. This is one of the most common ways to reduce your premium rates. Paying high deductibles while buying car insurance kenya may lower your premium rates but it could be risky for you.
It is suggested to opt for the amount that is affordable for you and may help you reduce your premium rates.
No Claim Bonus
No Claim Bonus (NCB) is a discount on premiums provided by the insurance companies. This discount is applicable to the car owners if they haven’t made any claims during their car insurance policy period If you are also eligible for no claim bonus, then you should claim it during the policy maturation period.
This reward can lessen the premium amount considerably through the years.
Know the Worth of Your Car
If a car owner knows the value of his car, it may help to save a lot of money on the premium. The car owner should calculate the correct IDV (Insured Declared Value) of the car. It can be calculated by comparing the actual price of the car to its market value at the time of renewing its insurance policy, It will be helpful to figure out the depreciated value of his car which enables him to negotiate with the insurance company on the premium of his chosen car insurance policy.
Another considerable factor is to make a detailed research on the car insurance policy along with the terms and conditions before you decided to purchase it. It will be helpful to discover the hidden clauses and become familiar with it to avoid any kind of financial loss.
Reduce Coverage on Older Cars
In case, you have planned to renew your policy but later you realize that the cost of your car is 10 times lesser than the renewal policy you are opting for, purchasing the car insurance coverage will surely not be cost-effective. In such situations, try to drop plan for comprehensive coverage.
It would be better if firstly you know the worth of your car and then pick up the plan accordingly. This is a wise decision towards decreasing your auto premium rates and ultimately heading to huge savings.
Keep a Sound Credit History
A good credit history owes to supreme benefits for the customers, especially lower insurance costs. Most insurers keep track of credit records of the consumers, for example -what kind of driver the car owner is, how much experience he holds as a driver, what is the possibility of accidents, and much more important factors to price auto insurance policies.
The customers who effectively manage their credit records and have made fewer or no claims during their car insurance period are considered likely to avail more discounts. Be sure that you’re getting the good credit, as it’s a smart way to lower down your premium rates. Keep checking your credit record regularly to verify that every information submitted is accurate.
Ask About Group Insurance
Some companies offer discounts to drivers who buy insurance through a group plan. You can either ask your employer or through business and alumni groups or from other associations. If you are a member of any club, you can even inquire with other members there, who are also keen to buy insurance or want to renew the policy.
Presented above are just a few simple steps to lower your auto insurance premiums. Reducing your car insurance premium can be an easy way to save money.