7 Hacks To Lower Your Car Insurance Costs

Divya Nair

06 Jan 2017

Buying a new car today might be cheaper than actually using one in our daily lives. The running cost of a car today is definitely higher than the day it was bought. While nothing can be done about the rising premiums on car insurance, we can certainly try cutting down the overall costs on our insurance covers.

Try These 7 Smart Ways To Save On Your Car Insurance Cost:

1. Accumulating NCB - Car owners can accumulate No Claim Bonus (NCB) by not claiming for minor repairs. Many insurance companies usually reduce premiums for the preceding year if you don’t make any claims in a year. Moreover, it is better to spend on your own on minor repairs than file a claim and lose the no-claim bonus.

2. Transferring NCB -

You can transfer your NCB when you sell your old vehicle and buy a new one. When getting your new car, all you have to do is inform your insurance provider that you wish to transfer your NCB. That done, the insurer will provide you with a certificate stating the details of the new car.

3. Apply For Discounts -

There are few insurance companies that offer discounts based on your age and profession. Make sure you apply for it.

4. Install Anti-Theft Devices -

People can also reduce the premium costs by installing smart anti-theft devices like alarms and tracking devices. By installing such safety devices, vehicle owners can get substantial discount.

5. Drop Unnecessary Add-On Covers -

We are often advised to buy the necessary add-on covers while buying a new car. But an add-on should not be bought only for the sake of buying it. One should drop any unnecessary add-on covers which will otherwise increase the premium costs.

6. Opt For Voluntary Deductible -

Vehicle owners can opt for a voluntary deductible and get further discount. But this also means that they will have to bear the claim cost upto the value of the deductible chosen.

7. Compare Quotes Online Before Purchasing -

It is wise to do an online comparison of policies from a number of companies before buying a policy. Most insurance companies offer lower premiums online. You may miss out on huge discount if you do not compare various plans.

Conclusion - With the rising cost of vehicles and changing lifestyles, car insurance cost is unlikely to go down in times to come. With these 7 ways mentioned above, we hope you will be able to lessen that extra cost on car insurance.

Buy a Car Insurance Cover Now!

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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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7 Hacks To Lower Your Car Insurance Costs

Divya Nair

06 Jan 2017

Buying a new car today might be cheaper than actually using one in our daily lives. The running cost of a car today is definitely higher than the day it was bought. While nothing can be done about the rising premiums on car insurance, we can certainly try cutting down the overall costs on our insurance covers.

Try These 7 Smart Ways To Save On Your Car Insurance Cost:

1. Accumulating NCB - Car owners can accumulate No Claim Bonus (NCB) by not claiming for minor repairs. Many insurance companies usually reduce premiums for the preceding year if you don’t make any claims in a year. Moreover, it is better to spend on your own on minor repairs than file a claim and lose the no-claim bonus.

2. Transferring NCB -

You can transfer your NCB when you sell your old vehicle and buy a new one. When getting your new car, all you have to do is inform your insurance provider that you wish to transfer your NCB. That done, the insurer will provide you with a certificate stating the details of the new car.

3. Apply For Discounts -

There are few insurance companies that offer discounts based on your age and profession. Make sure you apply for it.

4. Install Anti-Theft Devices -

People can also reduce the premium costs by installing smart anti-theft devices like alarms and tracking devices. By installing such safety devices, vehicle owners can get substantial discount.

5. Drop Unnecessary Add-On Covers -

We are often advised to buy the necessary add-on covers while buying a new car. But an add-on should not be bought only for the sake of buying it. One should drop any unnecessary add-on covers which will otherwise increase the premium costs.

6. Opt For Voluntary Deductible -

Vehicle owners can opt for a voluntary deductible and get further discount. But this also means that they will have to bear the claim cost upto the value of the deductible chosen.

7. Compare Quotes Online Before Purchasing -

It is wise to do an online comparison of policies from a number of companies before buying a policy. Most insurance companies offer lower premiums online. You may miss out on huge discount if you do not compare various plans.

Conclusion - With the rising cost of vehicles and changing lifestyles, car insurance cost is unlikely to go down in times to come. With these 7 ways mentioned above, we hope you will be able to lessen that extra cost on car insurance.

Buy a Car Insurance Cover Now!